Giles Murphy and Rachel Stone suggest how to improve financial discipline and create a clear human resources policy within chambers. In any professional services business, having good people and sufficient cash are pre-requisites. However, in many chambers, both often receive insufficient attention. So what should you be doing to reduce risk and maximize the opportunity from both?
As a minimum, the management team should receive a set of regular management accounts on at least a monthly basis. The management accounts need to be accurate, but more crucially, they need to be timely. It is much better to have a prompt set of management accounts, say within 10 days of the month end that incorporate some estimated figures, than to wait several months for precise data which is then out of date.