This longstanding law firm did not have adequate financial controls or the right calibre of expertise within the business to properly manage their finances.
The firm, therefore, invited Playfair Partnerships to provide an alternative. We were able to offer a comprehensive outsourced financial management and control solution, using our sector experience along with our multi-skilled team approach – providing the firm with all the expertise they needed at a cost-effective price.
We introduced budgets and monthly management accounting, identifying the firm’s direct and indirect costs and income. This meant we could provide individual practice area accounts in addition to those for the firm overall.
With this information clearly set out, the partners could, for the first time, understand the profitability of each aspect of the business so they could make more informed decisions at an earlier stage of economic change and internal performance.
The management accounts also provided the basis for the firm’s annual accounts, and so achieved a reduction in audit fees.
One of our partners attended partners’ meetings to explain and interpret the management accounts and to provide financial input during strategic discussions. Using the KPIs we produced and the key issues which we identified, we were able to help the partners make appropriate and timely decisions to improve the performance of the firm.
We designed and implemented a new cashflow reporting system. This built upon the firm’s budgeting by identifying cash requirements throughout the year, allowing better management of the firm’s cashflow and the ongoing relationship and discussions with the firm’s bank.
As a result of implementing comprehensive financial control, the law firm grew profitably, and the partners were more informed and able to make better decisions about the firm’s financial direction.
“Most lawyers are good at their subject matter but are less experienced at running a firm and all of the disciplines involved in doing so. Playfair Partnerships’ involvement provided the financial expertise that the firm had lacked. We have not only been provided with regular and timely information to monitor our business performance but have also learnt how best to employ this information to make timely decisions.” – Managing Partner
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