813 |
100-1000+ |
80+ |
| responses from law firm leaders | firm sizes by lawyer headcount | data points |
The BigHand Annual Law Firm Finance Report reveals the financial strategies firms need to prioritize to succeed in 2025 and beyond. It unpacks key trends around cash recovery strategies, shifting client behaviors for value and transparency, and the growing demand for lawyers to sharpen their business development and commercial skills. While profits are up, so are lock-up days, discounts, and write-offs. 86% of firms plan to hike prices next year, but with 75% anticipating more write-offs, there's a risk of falling into the "doom loop" where rate increases are offset by discounts to protect client relationships. In the push for growth, the fundamentals of good financial business practices cannot be missed.
This year, 58% aim to bill and collect more often and 31% are adjusting billing terms. Better client communication is now a must, with 30% planning to touch base more frequently during matters. Do you have sound cash-flow processes in place to drive improved results, regardless of economic conditions? Do your lawyers have the skills and tools they need to excel in commercial client interactions? To uncover more key insights, download the full report.
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of firms saw increased discounting last year, and 70% expect more next year. |
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of firms note rising demand for proof of value. Clients demand expertise, responsiveness, resource allocation and budget management. |
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of firms use Business Intelligence, with 20% planning implementation within the next 12 months |
72% of firms report increased write-offs last year, and 75% predict more next year.
Rising costs are eroding profits, as higher rates drive 33% to increase discounts to collect payments while 29% face client demand for value-driven pricing like AFAs. Firms that embrace effective budget management achieve results: 99% report improved billing realization, protecting profitability and strengthening client relationships.
58% of firms plan to bill and collect more frequently next year, and 31% will adjust billing terms
Proactive billing practices are critical for maintaining cash flow. By enhancing financial discipline and improving client communication, firms can reduce lock-up, mitigate write-offs, and build resilience against economic uncertainties.
64% of firms have increased focus on business development and client management
Collaborative, tech-enabled processes help firms win up to 56% more of a client’s spend. By building commercial acumen and leveraging data insights, lawyers can identify valuable client relationships and drive sustainable growth.
74% of firms provide associates with access to profit information and/or matter budgets for actuals.
Yet just a third (34%) have dedicated training programs in place for associates to provide education on key financial performance information. The need for better education is widely recognized, with 64% of firms planning to train lawyers for greater commercial awareness.
Join us as we unveil the latest trends and priorities shaping law firms’ strategic financial plans for the year ahead.
Hear from BigHand clients on how they have utilized our financial solutions to maximize profitability and financial awareness.
Join us for a demonstration of hoe BigHand Business Intelligence can transform data into meaningful actions to achieve your business goals.
