When it comes to a CFO in the legal sector, the role is undergoing rapid change. Not only are CFOs in a firm expected to handle the traditional duties and responsibilities of the role, but they need to be able to juggle a vast array of other responsibilities as well. Additionally, there’s a growing need for them to look to the future of finance and how the field will undergo change and development in the future.
If all of this sounds complicated, that’s because it is. A law firm’s CFO provides vital and crucially needed support, guidance, and duties that surround the finances of the firm. They’re a critical member of the team and you should be investing in one if you want to maintain a competitive edge in the field moving forward.
An Evolving Role
When it comes down to the functionality of a modern CFO within a law firm, it’s incredibly significant – both in its size and its influence on partnerships within the firm. But it’s also vital to recognize the increasingly important role that financial management is playing in the business and field of law. Research is beginning to suggest that CFOs fulfill a broad role within a law firm, which requires that they possess a range of operational, transactional, and commercial knowledge and expertise.
But it’s also important to recognize that CFOs are being increasingly recognized for their capacity as management-level decision-makers who can change all aspects of a firm’s financial strategy. The traditional role that a CFO used to fulfill, as purely a financial one, has moved from focusing purely on profit and revenue to a more strategic role over an operational one.
In today’s world of the business of law, a CFO focuses on the position of the firm in terms of its growth, mitigating risks, and optimizing internal processes as they look for new routes and ways to remain competitive. The modern CFO is leveraging technology to increase efficiency while also enhancing the firm’s performance.
The Finance Function: Moving Forward
Moving beyond the pandemic of the last few years, law firms are refocusing their efforts on implementing new capabilities and skills. In an increasingly tight labour market, finance teams might be feeling the pinch especially as they face the challenge of sourcing the right individuals to maintain and grow important functions within the law firm.
CFOs and other financial leaders will need to resort to creative methods and thinking to ensure that they can source the talent that’s required to run the many facets of a modern legal firm’s finance department. If they want to succeed, they might need to look beyond the professional services sector for the talent and skills that they need.
Modern CFOs fulfill a crucial role within a law firm that’s moved beyond the traditional role of a financial manager and advisor. They’re no longer a role that you can go without. If you find yourself in need of a CFO for your firm, consider Lev-Legal. Visit us online today for more information.