Survey Reveals that Law Firms Need Better Financial Data Visibility
The Global Cash Flow and Profitability Survey conducted by Bighand has found that an alarmingly small number of law firms around the world have access to real-time financial information. Accurate information for global legal firms is a necessity since it means they can keep abreast of developments in other locales. The study also found that most of these legal firms didn’t offer access to that information to individuals who could institute significant change. The study has raised some interesting questions about how law firms can deal with the reduction of inventory, addressing lawyer compensation, and leakage as substantial factors affecting cash-flow at these organizations.
Understanding the Study
The report is based on a study that surveyed two hundred and fifty-seven (257) respondents across the globe, all of which were senior legal professionals in companies that had a roster of at least one hundred (100) lawyers. Cash-flow questions featured as the lead-in to the core of the questionnaire. Eventually, questions turned to the financial data regarding these firms and how visible that data was too critical personnel who might need access to it. The study intended to show how understanding the use of this financial data could promote healthy cash-flow within the business as a whole.
The Results of the Report
Bighand has made the report available for interested parties, and it covers important details that companies can take to help them with their financial data visibility. Urgent action, the report states, is crucial to ensure that both lawyers and financial staff have access to relevant data across the company. It highlights how old data is dragging down attempts by legal firms to implement effective management strategies for cash-flow. Profitability and cash-flow remain the most significant factors that businesses need to address going into the future. Additionally, the report focuses on the issues that firms are having and focuses on the problems that seem to affect the majority of businesses when it comes to maintaining their profitability.
