Financial Forecasts

Navigating your firm's future with reliable data

You cannot manage a modern law firm by looking in the rear-view mirror. While historical accounts are necessary for compliance, they tell you nothing about your ability to fund a new office, survive a market downturn, or meet your upcoming tax liabilities. To lead with confidence, Managing Partners require robust, forward-looking financial data.

As the sole accountancy firm working in partnership with the Law Society, Armstrong Watson builds sophisticated financial forecasts tailored specifically to the cash-flow mechanics of the legal sector.

Dynamic, three-way forecasting

Standard budgeting is often just a P&L exercise. We build comprehensive "three-way" forecasts that integrate your Profit & Loss, Balance Sheet, and Cash Flow. As a founding partner of Law Firm Ambition, we ensure our models accurately reflect the realities of legal practice:

Lock-up and Cash Conversion: We factor in your firm's specific WIP and debtor days to accurately predict when revenue will actually convert into usable cash.
Tax and Drawings Planning: We map out the exact timing of partner tax liabilities (including the impact of Basis Period Reform) and structure partner drawing schedules to ensure they do not break the firm's cash flow.
Scenario Modelling: We build dynamic models that allow you to stress-test your business. You can instantly see the financial impact of losing a key fee earner, increasing salaries, or experiencing a market shift.

Essential for growth and compliance

Accurate forecasting is not just an internal management tool. If your firm is seeking external bank funding for an acquisition, applying for an ABS license, or launching as a new practice, the SRA and corporate lenders will demand rigorous, professionally prepared financial projections. We provide the independent credibility required to satisfy these external stakeholders.

Transparent pricing

Whether you require a one-off forecast to support a bank loan or a rolling monthly cash-flow model as part of an outsourced FD arrangement, we provide a fixed-fee quote prior to commencing work.

Simple Forecast: From £6,700 + VAT (for firms up to 50 people).
Detailed Forecast: From £13,400 + VAT (for firms up to 50 people).
Bespoke Solutions: Costs agreed for larger firms based on complexity.

Key contact

Andy Poole

Corporate Finance Partner

Contact Andy

Client Testimonial

We're committed to delivering the best client experience. Hear from those who have worked with us and discover how we've helped them achieve their goals.

Working with Armstrong Watson on our financial forecast has been very useful over the past few years. They developed a very comprehensive model which allows us to track our performance over 5 years and plan future investments and impact on profit and budget accordingly. They customised it to our needs and have been responsive to our feedback – adding or amending things as needed.

Andy, Jordan and the team are easy to deal with, provide always a timescale and deliver their work on time. I would recommend them to other firms who are looking into improving their profitability and keeping their finances organised.

Antonio Deban Valles

Profitability Officer, Scullion law