It’s Your Financial Standing on the Line
Should law firms be concerned about their financial standing within the global economy? The latest results from the Thomson Reuters Law Firm Financial Index revealed that the score has dropped consecutively for the past 4 quarters of 2022. The under-lying reasons identified in a study showed that a drop in practice growth that was not counterbalanced by non-transactional practices and a slowed demand that increased overall expenses have both pulled the score down. Essentially, the score has dropped due to an increase in overhead expenses which has been worsened by employees returning to the offices and rising inflation.
Hopefully there is some light at the end of the tunnel for law firms. Despite the decreasing score, the industry is not showing structural instability, there has been growth in the working rate and improved rate realization. These positive factors have given law firms an incredible opportunity to find a “sustainable middle ground for profitability” however, law firms need to be weary of the decreasing figures as they won’t want to end off the year in a weaker position than 2021. The crucks of the matter are that the good times are slowing and the firms that will win are those who possess the strongest relationships (clients & referrals) and deliver excellent client experiences for both clients and referral/potential clients. Nexl CAN help, so allow Nexl to do what Nexl does best, accelerating revenue growth by capturing all client data, consolidating and analysing the data to turn it into actionable insights for lawyers.