Financial stability 'must be top priority' for Lancashire law firms

By MHA

19 Sep 2013

The county’s law firms need to make achieving financial stability their number one priority if they want to survive in a changing legal landscape, according to a leading adviser to the sector.

A series of fundamental changes, including the new competition from alternative business structures, more stringent compliance demands, the Jackson Reforms to litigation funding, and reductions in legal aid funding have put enormous financial pressure on legal businesses.

Karen Hain, head of the professional practices team at Moore and Smalley Chartered Accountants and Business Advisors, believes that while many law firms have responded positively to the changes, thousands more are at risk of financial turmoil because of a lack of a clear growth strategy and a reluctance to change.

Moore and Smalley is a member of MHA, an association of nine independent accountancy firms across the UK who collectively advise over 150 legal firms and over 500 partners.

Karen, who is also a qualified Lexcel Consultant, said: “If you survey the UK legal sector, there are some excellent examples of law firms mixing strong financial management with innovation and creativity to build successful businesses, many of them benefiting from the external investment that the Legal Services Act has allowed. These are the ones that planned early and got in their house in order at the beginning.

“There are also many firms heading for potential oblivion, having responded too slowly to the monumental changes that have taken place over the last few years. These firms have limited options for securing their financial future and for many it will already be too late.

“There are many more legal practices caught somewhere in the middle of these two ends of the spectrum, still adapting to the changes and trying to chart their path to financial stability. Getting onto a firm financial footing and developing new growth opportunities are absolutely critical requirements for survival.”

Moore and Smalley has produced a guide for legal businesses entitled Financial Stability for Law Firms. The guide covers five key areas for financial stability, including financial management, business plans and strategy, cashflow and profitability, business structures and tax, and mergers. Copies of the guide are available from the Moore and Smalley website at www.mooreandsmalley.co.uk

Latest news

1

Breck to deliver £150m of affordable homes over four years Breck Development In Progress

Breck to deliver £150m of affordable homes over four years

18 Jul 2024

2

Business board launches to support county's economic growth Lancashire Business Board

Business board launches to support county's economic growth

18 Jul 2024

3

New business support community launches in Tarleton YAB Tarlton Press Release Image.png.png

New business support community launches in Tarleton

18 Jul 2024

4

Great Harwood Rovers aims for more inclusion with 3G pitch bid GREAT HARWOOD ROVERS 3G PITCH.png.png

Great Harwood Rovers aims for more inclusion with 3G pitch bid

18 Jul 2024

5

Preston College launches new VR-led mental health course Preston College Mental Health Vr

Preston College launches new VR-led mental health course

18 Jul 2024

Bec Web Strip 980x120
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Lancashire Built Environment Conference
BEC 315 X 315 Px
Networking
25 Sep 2024

Lancashire Built Environment Conference

Conference and Exhibition Centre, Winter Gardens Blackpool, FY1 1HL

08:30 - 13:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
11 Jun 2024 - 04 Dec 2024

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 16:30

The Business Network Central & East Lancashire
LBV Header (10).png.png
LBV Hub Networking
18 Jul 2024 - 18 Jul 2024

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Conversations in Creativity - Creative Networking Event
Untitled design-4.png.png
LBV Hub Networking
18 Jul 2024

Conversations in Creativity - Creative Networking Event

Society1 Coworking Space, Preston, PR1 3LT

17:30 - 19:30

Lancashire Economic Breakfast
LBV Hub Seminars
18 Jul 2024

Lancashire Economic Breakfast

The Mill, St Catherine's Park, Preston, Lancashire

07:15 - 09:00

What are Menopause Action Plans & How to Write One
Menopause Action Plan 2024.png.png
LBV Hub Webinar
19 Jul 2024

What are Menopause Action Plans & How to Write One

~ Online ~, ~ Online ~, ~ Online ~

12:30 - 13:00

Business Networking in Fylde, Blackpool
Blackpool Fylde Image.jpg.jpg
LBV Hub Networking
19 Jul 2024

Business Networking in Fylde, Blackpool

Village Hotel Blackpool, Blackpool, FY3 8LL

07:30 - 09:30

Preston Freelancer MeetUp and Coworking Day
Screenshot 2024-06-13 at 13.55.10.png.png
LBV Hub Networking
30 Jul 2024

Preston Freelancer MeetUp and Coworking Day

Society1 Coworking Space, Preston, PR1 3LT

10:00 - 12:00

Scaling your revenue: From zero to £1m in 60 months
CBP-logo LBV.png.png
LBV Hub Webinar
31 Jul 2024

Scaling your revenue: From zero to £1m in 60 months

Online, Online, Online

08:00 - 09:30

Chamber Breakfast Networking
Chamber Logo1.png.png
LBV Hub Networking
31 Jul 2024

Chamber Breakfast Networking

Pye Motors, Morecambe, LA3 3PF

08:00 - 10:00

Online Women's Health Clinic
clinic.png.png
LBV Hub Webinar
06 Aug 2024

Online Women's Health Clinic

x, Online, x

12:00 - 12:00

International Coworking Day Open Day
1.png.png
LBV Hub Social
09 Aug 2024 - 09 Aug 2024

International Coworking Day Open Day

Society1 Coworking Space, Prestin, PR1 3 LT

10:00 - 13:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV116 Online Graphic
Subscribe now

Weekly news bulletin