KSL ATP Legal Practice Management key terms

The systems, policies and day-to-day controls a law firm uses to run itself efficiently, covering people, files, money, technology and client service so that legal work is delivered profitably and safely.

A written document setting out a firm's objectives, target markets, service mix, financial forecasts and the actions needed to achieve them over a defined period, used to guide investment and measure progress.

A law practice owned and run by one advocate with no separate legal personality, so the owner bears unlimited personal liability for the firm's debts and professional claims.

A business relationship between two or more advocates who share ownership, profits and management of the practice, with liability generally borne jointly and severally by the partners unless structured otherwise.

A partnership structure in which the firm is a separate legal entity, so partners' personal exposure is limited to agreed capital contributions rather than the firm's full liabilities.

The process of forming a company as a separate legal person to carry on legal practice, with shareholders owning the entity and directors managing it under statutory duties.

A legal principle shielding owners or members from personal responsibility for a business's obligations beyond their agreed investment, protecting personal assets from firm debts and claims.

A written agreement recording how partners share capital, profits, decision-making, duties and exit rights, and resolving disputes so the relationship has clear enforceable terms.

A written communication given at the outset of a matter confirming the scope of work, responsible staff, fees, timelines and complaint routes, so the client knows what to expect.

A formal document signed by client and firm that records the terms on which legal services are provided, including scope, fee basis, responsibilities and termination rights, forming a binding contract.

An arrangement in which a client pays the firm in advance or on a continuing basis to secure availability of legal services, sometimes held as funds against future work.

The defined boundaries of what the firm has agreed to do for a client, including deliverables and exclusions, which prevents disputes about services not covered by the fee.

A situation where the firm's duties to one client, or its own interests, clash with duties owed to another client or former client, making impartial advice impossible without safeguards.

A client's agreement to a course of action given after full disclosure of the relevant facts and risks, so the client understands what is being waived or accepted.

An internal information barrier that prevents staff working on one matter from accessing or sharing confidential information held by colleagues on a conflicting or related matter.

The professional duty not to disclose information learned about a client's affairs without authority or a legal exception, protecting trust and the client's privacy.

A rule protecting confidential communications between lawyer and client from being disclosed in legal proceedings, encouraging full and candid instructions.

Funds held by a firm on behalf of a client, such as advance payments or settlement proceeds, which must be kept separate from the firm's own money and accounted for precisely.

A dedicated bank account, separate from the firm's operating account, used to hold client money and reconciled regularly so that client balances are always identifiable and protected.

The regular process of comparing the firm's accounting records with bank statements and client ledgers to confirm balances are accurate and discrepancies are identified and corrected.

The organised creation, storage, tracking and disposal of matter files, whether paper or electronic, so information is complete, retrievable and handled consistently.

The formal steps taken when a new instruction is accepted, including conflict checks, engagement documentation, client identification and creating the matter file and reference.

A firm rule specifying how long different categories of records must be kept and how they are destroyed, balancing legal, regulatory and practical needs.

Compliance with laws governing the collection, storage, use and transfer of personal information, requiring lawful bases, security and respect for individuals' rights.

A financial plan estimating expected income and expenditure over a period, used to control spending, set targets and compare actual performance against expectations.

A projection of money expected to come in and go out over coming weeks or months, helping the firm anticipate shortfalls and manage working capital.

The value of legal work already performed but not yet billed to clients, representing an asset that must be tracked and converted into invoices promptly.

The practice of logging the time spent on each matter in defined units, providing the basis for hourly billing, fee estimates and profitability analysis.

The process of preparing and issuing invoices to clients for fees and disbursements, applying the agreed fee basis and any applicable taxes and payment terms.

An expense paid by the firm on a client's behalf, such as court fees or expert charges, which is recorded and recovered from the client separately from professional fees.

A fee arrangement where payment depends on the outcome of the matter, often calculated as a percentage of sums recovered, and which is subject to regulatory limits.

The policies and practices for recruiting, developing, motivating and managing staff, including performance review, training and handling grievances and discipline.

Structured ongoing learning that advocates must undertake to maintain and improve competence, typically recorded in hours or points to satisfy professional body requirements.

The oversight by a senior lawyer of work done by juniors, ensuring quality, ethical compliance and appropriate development through review and guidance.

The systematic identification, assessment and mitigation of threats to the firm, including professional, financial, operational and reputational risks, through controls and monitoring.

A living record listing identified risks, their likelihood and impact, the controls in place and the person responsible for managing each one.

Insurance covering the firm against claims arising from negligent or wrongful professional advice, protecting both the firm's finances and its ability to compensate clients.

Checks carried out to verify a client's identity, understand their business and assess risk, required by anti-money-laundering rules before and during the relationship.

A document setting out target client groups, the services to promote, channels to be used, budgets and measures of success for business development activity.

Activities aimed at winning and growing client relationships, such as networking, referrals, tenders and cross-selling, distinct from general advertising.

Professional conduct limits on how advocates may promote their services, prohibiting misleading claims and improper direct approaches to prospective clients.