Editor’s foreword

Welcome to the launch issue of FD Legal, the newest edition to Ark Group’s growing stable of legal publications. Against a backdrop of globalisation and commoditisation, and as law firms jostle for position and try to remain competitive, there has never been a more opportune time to shine a spotlight on that once marginalised back-office function, the finance department.

If the opinions of the finance directors (FDs) we have spoken to are anything to go by, the profession is certainly ready to shake off the shackles of the restrictive partnership model and embrace a new ‘corporate’ identity. And there is no better example of this than the rigour shown by UK law firms to convert to limited-liability-partnership status. From a finance perspective, such a move spells the death-knell for the traditional closed-door accounting practices of the profession, with transparency and the adoption of recognised accounting procedures the order of the day.

This bodes well for law firms that are often criticised as being less ‘professional’ than their counterparts in the accountancy and consulting professions. Indeed, it is no mistake that many of the FDs in the top-100 UK law firms have been recruited from outside the legal profession. Perhaps more importantly, some have witnessed first hand the impact of deregulation in other industry sectors, and this commercial awareness could prove the difference between success and failure.

As global market forces continue to bear down on law firms, and with the UK legal market on the brink of becoming the most liberal in the world, there is much for the law-firm FD to ponder. By providing a vehicle for the sharing of best practices and opinions during these testing times, we hope FD Legal will become your indispensable guide to effective financial management in the legal profession.

Of course, at the heart of our success in achieving this goal is you, the reader, so if you have any issues that you are keen to address, or that you would like FD Legal to explore, please get in touch. Similarly, if you would like to share any of your own project experiences, or have any feedback, you can contact me at jschofield@ark-group.com.

In the meantime, I hope you enjoy the first issue of the magazine and look forward to receiving your comments and feedback.

Jason Schofield
Consulting editor

Features

Not your basic bean counters Free
As UK law firms prepare for massive regulatory shake-up and embrace new corporate working practices, the commercial experience of the profession’s current crop of finance directors could not be more welcome. By Jason Schofield, Editor, FD Legal

Business development in context Free
In the last ten years, multi-disciplinary firm Dickinson Dees has achieved double-digit growth year on year, and increased staff numbers from less than 250 to over 800. With turnover now in excess of £50m per annum, the firm shares some of the secrets of its success. By Robin Bloom, Dickinson Dees

Cash management: Put the squeeze on your business Free
Cash management, to accelerate cash flow and reduce debt and partner investment, is fundamental to developing a law firm.

Last word: Getting to grips with GAAP Free
Converting to limited-liability partnership is proving popular among UK law firms, but the accounting pitfalls should be carefully considered before taking the plunge. By Steve Gale, Horwath Clark Whitehill.

Taking the threat of alternative business structures seriously Free
Some UK firms may think that the impending Legal Services Act is of little consequence. But the potentially profound implications posed by external ownership and alternative business structures should not be taken lightly.

Clementi – can you afford to stand still? Free
With time quickly running out for UK law firms to prepare for deregulation, Sacha Ramanovitch considers some of the strategic options.

The business case for outsourcing Free
Deciding to outsource key business functions such as HR or IT is inherently risky. But if the business case is sound, the firm, the provider and any transferred staff should all reap the rewards.

Leading the business, not just counting the beans Free
Law firms are facing huge pressures to overhaul their professional traditions to become modern competitive businesses. And at the heart of this change is the finance function, which is no longer limited to just counting the beans. By David McLaughlin, Simmons & Simmons

Improving your working-capital management Free
From poor cash control that allows money to walk out of the door, to inconsistent billing policies that can easily be ignored, improving working-capital management requires time, energy and planning.