Finance Module Part I: Managing yourself and gaining financial awareness

This is the first of two finance modules which forms part of the PathToPartner training programme for lawyers on the cusp of partnership or newly appointed partners.

PathToPartner is a comprehensive programme of non-technical skills to help lawyers with BD, Finance, and HR/People issues.

This is a shortened version of the programme that we run in person in-house at law firms.

Learning objectives:

• Understanding the firm’s various financial statements - what does a balance sheet show and profit and loss account show?
• How any investment made in the practice is represented in the financial statements
• Key performance indicators for the practice
• Benchmarks
• How profits and cash are generated in a law firm
• Understanding financial targets and approaches to achieving them
• Getting the basics right – the importance of getting bills raised and paid, and the difference between profit and cash
• Cash flow and Lock up – how long does it take to bill clients and get paid, why it is important and strategies to reduce it