Transform Law Firm Planning, Reporting & Operations with Oracle Cloud EPM

Oracle Cloud EPM

Introduction: Why EPM Matters for Law Firms

Law firms operate in a unique financial and operational ecosystem. With no tangible products to sell, revenue generation is tightly tied to people, their expertise, and their output. Adding to the complexity is the need to allocate resources effectively, balance profitability across practices, and navigate the increasing demand for agility and technological innovation.

Financial Planning Challenges and Solutions

Financial Planning Challenges and Solutions

Today’s leading legal teams are shifting from traditional static planning to flexible, agile modeling in response to greater regulatory and compliance demands and the evolving role of legal operations.

Legal departments who practice frequent forecasting are better positioned to adapt to changing conditions, and to navigate these challenges, GCs and CFOs must seek innovative solutions that balance risk management with financial efficiency.

Law firms face multifaceted challenges when it comes to financial planning:

Budgeting Nuances

1. Granular Planning: Traditional, static budgets often fall short in addressing the intricate details of law firm finances. Oracle Cloud EPM enables granular planning, supporting budget owners in:

  • Monitoring direct expenses like client-specific travel and office supplies.
  • Allocating indirect costs such as corporate overhead, IT expenses, and rent, ensuring a comprehensive view of profitability across practices.

2. Agile Forecasting: Rolling forecasts, such as a 24-month continuous model, provide real-time insights and foster flexibility in planning. Oracle EPM empowers firms to:

  • Respond dynamically to changing economic conditions.
  • Align expenses with anticipated revenue for better financial health.

Workforce-Driven Revenue

Law firms’ primary asset is their workforce. Effective planning around workforce-related costs and revenue includes:

  • Compensation Management: Streamline budgeting for partners, associates, and paralegals.
  • Activity Metrics: Leverage Oracle EPM’s integration with HCM systems to analyze activity-driven revenue and monitor productivity.
  • FTE Standardization: Standardize full-time equivalent (FTE) calculations across practices to ensure consistent performance reporting.

Reporting Excellence

Key financial reports and metrics are critical for transparency and decision-making:

  • Profitability analysis by office, department, or practice.
  • Utilization and efficiency metrics derived from payroll and HR systems.
  • Accrual vs. cash accounting insights to bridge operational and jurisdictional reporting needs.
Reporting Excellence

Embracing Industry Trends

Although the legal sector has historically been slow to adopt change, evolving client demands and economic uncertainties are driving transformation:

Agile Financial Models

  • Over 61% of firms are transitioning to dynamic, agile planning models.
  • Continuous planning and frequent updates (monthly or quarterly) enable firms to spot trends and adjust strategies proactively.
Agile Financial Models

Investment in Technology

  • 40% of enterprise legal departments plan to prioritize technology in 2025 budgets, with small and mid-market firms at 30%.
  • Oracle EPM Cloud facilitates technology-driven planning, ensuring accuracy, efficiency, and adaptability.

Success Stories

Leading Multinational Law Firm Places Planning & Reporting on Its Docket

A global law firm streamlined its planning and reporting processes with Oracle EPM Cloud. By integrating advanced analytics and standardizing reporting, the firm achieved greater financial visibility, improved resource allocation, and enhanced decision-making capabilities. Read more >

Embracing Oracle EPM for Enhanced Planning & Reporting Processes

A forward-thinking law firm transformed its financial operations by adopting Oracle EPM Cloud. The solution enabled dynamic forecasting, standardized metrics, and a more agile planning model, empowering the firm to adapt swiftly to changing market conditions. Read more >

Conclusion: A Future-Ready Solution

EPM is a process-driven, strategic approach to managing an organization’s performance that refers to the processes designed to help organizations plan, budget, forecast, and report on business performance as well as consolidate and finalize financial results. At the end of the day, organizations want to better understand how they can outperform their competitors and EPM helps them bridge the gap between strategic and tactical execution and tie operational results to strategic goals.

By providing a unified view of financial, operational, and line of business planning, Oracle Cloud EPM improves planning accuracy and makes your company more agile. Advanced technologies, such as AI, machine learning, and predictive analytics, enable finance teams to integrate real-time data into planning, eliminating delays in decision-making.

Learn More:

Join our live webinar on Friday, January 31 to explore the challenges law firms face and strategies for improving the accuracy and efficiency of planning and reporting processes. Register here: https://www.circularedge.com/webinar/transform-financial-operational-processes-in-the-legal-industry/

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