By Legal Futures Associate Legl
As we hit the midway point of 2023, it’s an opportune time for firms to take stock of their current situation and adjust course where necessary. With the ongoing uncertainty in the UK economy, the competitive landscape for law firms has become more challenging than ever. Drawing from the insights of management teams at Legl’s client law firms, we have identified three areas that should be your focus: cash recovery speed, risk and compliance management, and client and staff retention.
Maximising Cash Recovery
In these economically challenging times, enhancing your firm’s cash flow management is pivotal. The key is to cut down invoice payment times, well below the 60-day industry standard, through the employment of efficient payment technologies and implementing strict and consistent credit control processes. The end goal is to increase your understanding of your business’s financial health, optimise resources and make future investment decisions based on accurate cash flow predictions and detailed insights into payment times and debtor days.
To help law firms navigate this financial challenge, Legl has developed features such as customisable payment plans and payment request links.
Payment plans provide flexibility for clients, allowing them to pay in structured, manageable instalments, thus reducing the burden of large, one-time payments. This feature promotes prompt payments, reduces default rates, and enhances customer satisfaction, thus strengthening the attorney-client relationship.
Meanwhile, payment request links offer an immediate and user-friendly way for clients to settle their accounts. By simply clicking on the link sent via email or text, clients can quickly and securely fulfil their payment obligations. The convenience and immediacy of this feature reduce payment delays and positively impact cash flow management. The integration of these advanced payment features into your financial processes can dramatically reduce debtor days and bring significant improvements to your firm’s overall financial health.
Robust risk and compliance management
As the regulatory environment continues to evolve rapidly, it’s crucial for your firm to remain in line with the latest guidelines from the SRA and other relevant regulatory bodies, particularly around AML. This requires firm-wide visibility and oversight, with clear, consistent processes for both staff and compliance teams. By adopting the right technology tools, your firm can proactively identify, assess, and mitigate risks more efficiently and effectively.
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Legl has developed powerful risk and compliance management capabilities to help law firms meet these evolving regulatory needs. The platform offers built-in identity verification tools and AML checks, drastically reducing manual effort while enhancing the accuracy of risk assessment. With the platform’s digital onboarding process, firms can seamlessly collect and store clients’ necessary due diligence information, all within a GDPR-compliant environment. Not only does this streamline compliance procedures, but it also offers a more convenient and efficient client experience.
Legl also facilitates ongoing risk management with real-time updates, ensuring firms are consistently compliant with any regulatory changes. Legl’s tools provide clear visibility of compliance across the firm, offering crucial insights that help identify potential areas of vulnerability and opportunities for process improvement. With these advanced features, Legl is able to drive greater efficiency and efficacy in firms’ risk and compliance management, helping them navigate the complex regulatory landscape with confidence.
Retention of clients and key staff
In a fiercely competitive market, the ability to hold onto your existing clients and attract new ones, as well as retain your key staff, is fundamental to your firm’s success. Embrace a client-centric approach, using digital tools to facilitate a quick and seamless onboarding process and enhance client experience throughout their lifecycle.
Plus, reducing administrative tasks for your legal team by employing intuitive technology solutions not only improves their job satisfaction and motivation but also their productivity and efficiency. As Natasha Boyland of Woodstock Legal Services puts it, “Time is so precious for the guys. [With Legl,] we’re not having to chase people constantly. [The fee earners] are not thinking about who they need to chase, or what needs to be done. It’s all done for them centrally. So the value is really in getting time back for the team.”
Final thoughts
Halfway through 2023, the terrain might seem challenging, but it’s also ripe with opportunities for those ready to adapt and innovate. By recalibrating your focus on these three crucial areas – speedy cash recovery, robust risk and compliance management, and strong client and staff retention – you can navigate through the rest of the year with confidence. Make the most of the remainder of 2023 and set your law firm on a path to success.
