FINANCIAL STABILITY SCORECARD
Understand your firm's financial stability...
A free online tool which helps to evidence 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, making it more difficult to secure Professional Indemnity Insurance (PII) cover and the means to pay for it. Whilst law firms can produce financial accounts, this only offers a ‘rear view’ of the firm's performance and does not explain the firm’s attitude to financial management and therefore the future performance remains unclear.
Due to concerns over financial controls the SRA has mandated that firms should actively monitor their financial stability and business viability. (SRA Code of Conduct for Firms 2.4)
With insurers and lenders likely to tighten acceptance criteria, never has it been more important to the evidence the approach to financial management. Not only will you gain a better understanding of your firm's approach to finance you will have peace of mind that the business has solid processes and procedures in place to enable financial stability.
Tackle the unknown unknowns:
Without an experienced Finance Director or an accountant that can proactively support the business, it is very difficult to know what areas of finance should be reviewed and what actions should be taken to improve the financial outlook.
"The approach to finance should never about the money.
Firms must focus their efforts to develop the cultural approach to cash management
supported by solid risk processes and procedures."
A simple solution:
The Financial Stability Scorecard is a unique, free online resource which helps law firms to meet their financial, operational and regulatory obligations. Answering a series of ‘yes/no style’ questions (without the need for sensitive financial information) the scorecard will outline what is going well and identify areas for improvement and concern across 3 key areas
No sensitive financial information is required and the exercise takes less than 5 minutes to complete.
The Outcomes: Evidencing the approach to financial stability and viability
To date, 100% of firms that have completed the scorecard have confirmed the exercise was worthwhile and helped to evidence their approach to financial stability.
The scorecard provides immediate results and frequent retakes enable you to track your improvement over time. If you need help with next steps we can provide a detailed written analysis of the firm's responses which outlines areas of good practice and suggestions for improvement.
"We have developed a unique took which seeks to evidenced the cultural approach to finance. The Financial Stability Scorecard is unique and the only one of its kind which offer a gap analysis supported by a full written report. This is an essential tool for law firm leaders to plan and execute a sustainable strategy for the business."