In-house counsel are expected to provide legal advice that aligns with the business strategy of their company. To do this, they must have a thorough understanding of the financial language used by the business. In this whitepaper, we will discuss the importance of in-house counsel understanding financial language, including the importance of speaking the language of the business, understanding profit and loss statements, EBITA, budgeting, and available resources, training, and courses.
Importance of Understanding Financial Language
In-house counsel who understand financial language can more effectively communicate with their business colleagues, including executives, accountants, and financial analysts. Speaking the language of the business allows lawyers to contribute to business decisions and to better understand the financial implications of legal advice.
Understanding profit and loss statements, EBITA, and budgeting also allows in-house counsel to provide legal advice that aligns with the financial objectives of the company. In addition, it can help in-house counsel to identify areas of potential legal risk and to provide legal solutions that are financially feasible.
Resources, Training, and Courses
There are several resources, training, and courses available to help in-house counsel understand financial language. Many law firms and professional associations offer training programs on financial literacy for lawyers. These programs typically cover topics like financial statements, budgeting, and financial modelling.
In addition, there are online courses and certification programs available through universities and business schools. These programs can provide in-depth training on financial language and financial management.
Goals for In-House Counsel
In-house counsel should set specific goals for their financial literacy and regularly assess their progress. Some possible goals include:
- Attending a financial literacy training program or course
- Reviewing the company’s financial statements and budgeting documents
- Meeting with financial colleagues to discuss financial language and concepts
- Incorporating financial language into legal advice and discussions with business colleagues
By setting specific goals and tracking their progress, in-house counsel can improve their financial literacy and provide more effective legal advice that aligns with the financial objectives of their company.
Conclusion
In-house counsel who understand financial language are better equipped to provide legal advice that aligns with the financial objectives of their company. By speaking the language of the business, understanding financial statements and concepts, and setting specific goals for their financial literacy, in-house counsel can contribute more effectively to business decisions and provide legal solutions that are financially feasible.
