The SRA's latest report on financial stability (February 2014) said its engagement with firms found poor financial management that ranged from "naive to reckless". They have also seen poor practice in the management of client accounts. This toolkit will help firms to address those common financial issues facing many firms. This toolkit will cover the following: What the requirement to maintain financial stability will mean in practice for firms. What are the danger signals and how can action be taken to remedy them? The steps that need to be taken to take control of cash management in order to achieve financial stability. Part of our popular toolkit series, it will contain a mixture of draft policies, procedural checklists and other instruments to assist practitioners in demonstrating sound financial management. The aim is to produce a working resource which practitioners can use to monitor the financial health of the firm. It will form part of a series of toolkits branded with the livery of the Risk and Compliance Service.

Why this report, why now? We began 2020 in bright spirits and bountiful economic conditions; by early March all that had changed. Economic adjustments were made and, overall, firms ended the year in much better shape than their spring worst-case projections anticipated. Some firms were even close to their original 2020 profit expectations to date - largely due to quick actions to curtail expenditures as COVID-19 got underway in the US. Adjusting the Numbers: The Future of Finance in Law Firms looks back at a year like no other in our lifetimes, highlighting pricing, budgeting, strategic planning and people management principles, and identifying good compensation practices that can be applied during the pandemic, its gradual cessation, and beyond. Unique selling points: First title to look at financial performance post-COVID, focusing on pricing, compensation, financing, KPIs and partner management.