Law firms warned on cost control

Smith & Williamson partner Ian Cooper said the end of January was a critical time for law firms with many big bills due at a time when revenues were often at rock bottom. He warned firms about expanding too quickly and causing costs to run ahead of cash coming in.  'All this can put cash flow under severe pressure. Cash flow must be closely monitored. If necessary, firms may need to consider negotiating a short-term bank loan, asking partners to minimise their drawings or put more money into the firm,' he said. Source: Bristol Post