FINANCIAL STABILITY SCORECARD
Understand your firm's financial stability...
Use our free online tool review, evidence and improve
your approach to financial management.
Many in the legal sector predict a significant failure rate in legal practices over the next 18 months. This predication has unnerved many in the sector - not least insurers and lenders - which has made it more difficult for firms to secure Professional Indemnity Insurance cover and the means to pay for it.
With insurers and lenders likely to tighten acceptance criteria, it has never been more essential to find ways to effectively evidence your firm’s approach to financial management. Doing so will not only offer third parties (and your management team) a better understanding of your firm's approach to finance; it can also help you to improve your processes and procedures in order to ensure long-term financial stability.
How can we help?
Whilst law firms must produce financial accounts, this only offers a ‘rear view’ of the firm's performance. It gives little insight into the firm’s approach to financial management and therefore its financial stability. With this in mind, the SRA has mandated that firms should actively monitor their financial stability and business viability.
However, it is difficult to pinpoint what to review and which actions to take, unless you have an experienced Finance Director or accountant on board that knows your business inside out and has the knowledge and experience to proactively support the firm.
This is why we developed our Financial Stability Scorecard.
Financial Stability Scorecard
The Financial Stability Scorecard is a unique (and free) online resource that we built specifically to help law firms meet their financial, operational and regulatory obligations.
It takes only 5 minutes to complete, but can offer a set of essential insights that could change how your firm manages its finances. You’ll be presented with a series of yes/no questions, and won’t be asked to provide any sensitive financial information. Our model will then clearly outline what is going well for your firm, and identify areas for improvement and concern across 3 key aspects of the business:
The scorecard provides immediate results and can be used as often as you like, meaning you can easily track your firm’s progress over time.
To date, every single firm that has completed the scorecard has confirmed the exercise was worthwhile and helped to evidence its approach to financial stability.
Now you’re probably thinking: “what’s the catch?”. Well, there isn’t one. The tool is genuinely free. If you complete the scorecard and want help with actively implementing changes to your financial management processes, we simply hope that you’ll bear us in mind.
For example, we would be delighted to provide a comprehensive written analysis of the firm's responses, outlining areas of good practice and providing practical suggestions for improvement. But there’s no obligation whatsoever on your part.
"The Financial Stability Scorecard is a free resource helping law firms to assess the effectiveness of their financial management controls. This essential tool can help to develop a sustainable financial strategy for the business."