In our work with professional practices in the Legal Services Sector, regulatory compliance, for example the delivery of prescribed Solicitors’ Accounts used to be the biggest issue we (and they) faced. Nowadays, that’s all changed. Since the advent of the Legal Service Act 2007 and the gradual roll out of its provisions, we’ve seen Solicitors and others in the Legal Services Sector face up to some interesting challenges and opportunities.
Coinciding as it has with one of the worst recessions on record, professional practices have decided to make some serious strategic choices about their legal structure (partnership / LLP or limited company or a combination of both) whether it was time to be merging practices, perhaps creating a Legal Disciplinary Practice with licensed conveyancers, barristers, notaries public, legal executives, patent and trademark agents, law costs draftsmen or registered overseas lawyers.
These options are not just confronting large firms based in London. In Buckinghamshire and Hertfordshire as well as in larger towns and cities in our area – Reading and Oxford - partners are facing up to the way forward under new regulations, legislation and current economic realities.
Of course, business decisions like these are not greatly different to those faced by organisations in other sectors. There is still a need to look at practice valuations, and ensure that working capital is adequate, or at least identify if raising new funds is a requirement.
If any of these issues ring true with lawyers, they can find out more information from professional advisers that understand legal service firms. Harwood Hutton as expert accountants who advise a number of solicitors and other professional practices would be delighted to discuss any issues your business is facing currently.