From the CFO's Perspective

We had the privilege to partner with Mitesh Velani, CFO of WeirFoulds LLP. based in Toronto. From a successful working partnership, we wanted to share his insight of why law firms should look to an FP&A platform implementation partner.

Bio & Expertise
Mitesh possesses over a decade of expertise in senior financial leadership positions within both law firms and private organizations. His areas of emphasis include enhancing processes, devising business strategies, planning, pricing, and proficient project management. In addition to his extensive knowledge in leading and supervising the creation, execution, and monitoring of financial strategies, policies, operations, and systems, Mitesh takes charge of steering the continual evolution of the firm's IT and administrative functions and teams.

Extract:
We had a unique opportunity with Mitesh to share his insight on how Data Analysis and FP&A can enable Law firms, big and small through the right implementation partnership.

Mitesh Velani
Chief Financial Officer at WeirFoulds LLP.

Skills

Developing, implementing and monitoring the Firm’s financial strategies, policies, operations and systems as well as overseeing ongoing transformation of the Firm’s IT and administration functions and teams.

Education

Legal Lean Sigma Institute – Yellow Belt in Legal Lean Sigma and Project Management (2015)
CMA – Certified Management Accounts of Ontario (2011) University of Waterloo, B.A. (2005)

Experience

10+ years of experience in senior financial leadership roles at law firms and private organizations, with a focus on process improvements, business strategy and planning, pricing, and project management.

Before ProLytics Implementation

“As Weirfoulds entered a new phase in its financial reporting, our team encountered a significant learning curve. Assigned with the responsibility of overseeing financial systems and intricacies, we found ourselves ready to use a powerful tool, ELITE AFS, however we recognized knowledge gaps in navigating the complexities of the AFS system.

Fortunately, our IT director had made introductions with ProLytics Consulting Group and we came to understand their fluency in FP&A consulting in the legal industry.  The pivotal moment occurred during a face-to-face meeting and strategy walkthrough, where we recognized the need for their AFS expertise in navigating and optimizing our systems. Collaborating with experts like ProLytics and the team proved invaluable in understanding industry practices and receiving guidance on necessary changes and this was demonstrated in a walkthrough where we realized the expertise would be difficult to ramp up quickly as there was a lot being done internally on the WeirFoulds side. 

This challenge was particularly daunting as our entire team (myself included) was new to the organization. The initial stages of our journey with AFS were characterized by the need to grasp unfamiliar processes and establish a solid foundation within our existing legal operations landscape.

As I took on a new role, we leaned out to ProLytics as a crucial part in helping reshape reporting structures and departmental frameworks. While the impact is still unfolding in this initial phase, AFS lead with the guiding hand of an industry partner is instrumental in steering us toward positive change.  In essence, ProLytics has become an invaluable partner in our journey, helping us navigate challenges, innovate, and achieve our long-term objectives.”

 

Mitesh Velani
CFO
Weirfoulds LLP.
Toronto, Ontario, Canada

Inherent Advantages
to Internal Reporting Systems

Q (ProLytics): How can smaller to medium-sized firms progress towards aligning with larger entities in terms of profitability analysis, should a focus be placed on comprehensive reporting or information systems?  Which is more important towards strategic advancement?

A (Mitesh): In response to your question about recommendations for a growing firm aspiring to align with larger entities in terms of profitability analysis, it’s essential to recognize the advantages of integrating both, comprehensive reporting and information systems.

For smaller to medium-sized firms, the initial focus often revolves around establishing regular reporting practices that serve immediate needs. However, to attain the level of sophistication seen in big law or serious mid-market law firms, embracing advanced tools for profitability analysis becomes paramount.

The key advantage in integrating an information system powered FP&A platform lies in providing timely, actionable information to users, particularly lawyers and department chairs who must make quick decisions. The ability to assess capacity, workloads, associate activity, and the nature of ongoing projects empowers decision-makers to navigate their responsibilities effectively.

Undoubtedly, the cost aspect is a consideration, especially for mid-size and small firms with limited resources. This is where external expertise, such as your team at ProLytics, proves invaluable. Partnering with experts becomes an extension of the law firm, enabling the implementation of sophisticated systems without the need for a full-time, in-house resource. It’s a strategic and cost-effective approach that facilitates efficient decision-making and supports the firm’s growth.

“And that’s where, to be honest, expertise such as your team is so helpful and beneficial because it’s an extension of our law firm in helping us get these things done and set up because we can’t always invest in a full time person just to do these things.  

A lot of times we need that as an expert coming from you guys at ProLytics.”

Mitesh Velani
CFO
Weirfoulds LLP.
Toronto, Ontario, Canada

Achieving Reporting Alignment

Q: What should a firm consider when making that shift from regular standard reporting to enhanced analysis to guide organization direction?

A: When considering the specific needs of small firms in financial analysis or Financial Planning and Analysis (FP&A), one crucial aspect to focus on is the accuracy of how information is entered by various departments and sections.

In many instances, small firms may face resource constraints and prioritize getting data into the system efficiently. However, the emphasis should be on ensuring that this data is accurately placed in the proper General Ledger (GL) categories. Efficient budgeting and planning for the future heavily rely on having data organized in the right buckets.

Upon joining this firm, one of the immediate challenges identified was the scattered placement of information across multiple GLs. Marketing expenses, for instance, were distributed across three different buckets. Recognizing the need for consolidation and cleanup in the upcoming year, the emphasis is on streamlining and consolidating this information for more effective financial analysis.

The turning point occurred when our emphasis, particularly from a cost and expenditure standpoint, was to gain a precise understanding of the gross margin across various departments and practice areas. While we had been accustomed to an annual overview of our overall profitability, we aspired for a more nuanced and insightful analysis.

Our commitment to this initiative became even more evident as we honed in on discerning the gross margin at the department and practice area levels. This level of granularity proved to be a game-changer. We were now equipped with the ability to pinpoint not only the overall profitability of the firm but also the specific areas contributing to our success.

The impact of this detailed analysis has been transformative as we could identify and celebrate the lucrative areas that were driving our financial success. This knowledge also aids us in making informed decisions about resource allocation, recognizing where increased investment, expansion, and hiring could further propel our growth. Additionally, the insights garnered allowed us to strategically provide additional support where needed, reinforcing our commitment to excellence.

Building an Adaptable Solution

Q: How can smaller firms get a foot-hold with considering FP&A in its growth strategy?

The key takeaway for small firms is the importance of accuracy in the initial data entry phase. While the urgency may be to input data swiftly, taking the time to ensure it’s placed correctly from the outset is crucial. This proactive approach eliminates the need for time-consuming reallocations or adjustments post-entry, a practice that has proven to be inefficient, burdensome and hinders growth.

The recommendation for small firms is to invest time and energy upfront in getting the right expertise, whether it’s a financial systems person, a master files expert, or a dedicated role for data accuracy. This proactive investment ensures that financial data is entered correctly the first time, paving the way for more streamlined financial analysis, budgeting, and planning and even reaching out to industry experts for consult with additional guidance and knowledge in how to move forward.

In today’s business landscape, having dedicated roles for maintaining data accuracy is not just beneficial; it’s essential for the efficient operation and growth of small firms.

Leveraging Expert Experience
towards Sustainable Scale

Q: How has the experience been with aligning these goals through a Consultancy Partner?

Your team’s expertise has been particularly beneficial in this regard, serving as a valuable extension of our law firm and helping us navigate the complexities of setting up and optimizing these systems. This collaborative approach ensures that we can access the benefits of advanced analytics and profitability analysis without the need for extensive internal resources.

The advantages of bringing together sophisticated reporting, timely information, and external expertise are instrumental in propelling a growing firm towards its larger goals, akin to big law or mid-market counterparts. We appreciate the invaluable support provided by your team in helping us achieve this level of operational excellence.

Looking ahead, our long-term goal is to leverage ProLytics support to enhance our firm’s profitability analysis. We aim to dissect gross margins by departments and practice areas, gaining insights into areas generating revenue and identifying opportunities for strategic investments. ProLytics contribution is pivotal in aligning our goals, fostering transparency, and providing real-time proof of our business’s success.

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