Why Law Firms Prioritise Finance Systems Over CRM: Despite Claiming a Relationship-Driven Approach

David Langdon
Jan 23
4 min read

Updated: Mar 4

As Dave Harris from iQlink in the UK recently quipped during a conversation we had: “Law firms don’t showcase invoice processing as their primary focus on their websites; they typically emphasise their commitment to building great client relationships.” It’s a fair point, and one that got us reflecting on our combined 40+ years of experience working with CRM systems in law firms.

Despite proudly championing relationships, firms often seem far keener to invest in finance systems than in the very tools designed to strengthen those all-important client connections. That conversation sparked the basis for this blog post. Why do law firms prioritise financial infrastructure while hesitating on CRM, which is designed to enhance their relationship-building capabilities?

Let’s explore the factors behind this curious dynamic.

1. Finance Systems Have Clear ROI

Finance systems deliver a tidy, tangible return on investment (ROI). Improved billing, streamlined cash flow, and faster work-to-cash cycles are all measurable wins that partners can confidently present to stakeholders. The ability to enhance financial transparency and efficiency makes these systems an obvious choice for investment.

By contrast, CRM systems often feel less concrete. Building and nurturing client relationships is a long-term game, and quantifying their financial impact can feel like trying to bill for a casual client lunch – valuable, but hard to put on paper.

2. Finance Fixes the Obvious Pain Points

Billing delays, compliance bottlenecks, and financial reporting headaches are loud and visible problems in law firms. An outdated finance system creates operational pain points that everyone from accounts to partners feels acutely.

CRM challenges, on the other hand, are less dramatic. Juggling client relationships with Excel sheets or outdated databases isn’t ideal, but it rarely creates the same urgency. This makes it easier to overlook the inefficiencies CRM systems could solve.

3. CRM Tech Has Come a Long Way (But Perceptions Haven’t)

It’s true: traditional CRMs had a reputation for being a chore. They required manual data entry, constant updates, and fee earners’ time – something in short supply. Many firms still hold onto this view, assuming that CRM adoption will require monumental effort with little return.

But here’s the twist: modern CRM technology has evolved. Tools like TRĒ leverage AI to provide automated, powerful insights without the need for a team of data stewards. TRĒ cleanses and enhances legacy CRM data, delivering built-in eMarketing and data quality management, all without requiring manual intervention. This means lawyers can focus on building relationships, while the system handles the data – hands-off until they choose to be hands-on.

4. Priorities Are Misaligned

Despite the talk about relationships, firms tend to put their money behind revenue-driving systems. Finance software underpins billing and, by extension, the entire operation. CRM, though valuable, is often viewed as “nice to have” rather than “absolutely critical.” This disconnect exposes the gap between a firm’s relationship-focused rhetoric and its budget allocation reality.

5. Lawyers and CRM: A Cultural Clash

Relationships in law are personal, built over years of trust and effort. For many lawyers, a CRM feels like a corporate intrusion into a delicate art form. Sharing client data across the firm? That’s like asking them to share their secret fishing spot – it’s personal, hard-earned, and not something they’re eager to broadcast. This cultural resistance often leaves CRM adoption stuck in neutral.

The Irony: Relationships Are the Revenue Drivers

The irony is hard to ignore: relationships are the lifeblood of any law firm. Strong connections bring in repeat business, referrals, and cross-selling opportunities. CRM systems are tailor-made to help manage these dynamics, but firms often fail to see the connection between nurturing relationships systematically and boosting revenue.

Bridging the Gap: A Balanced Approach

Law firms can tackle this paradox with a few simple (but not necessarily easy) steps:

Quantify the Value of CRM: Start measuring the impact of relationship management. Metrics like client retention, referral rates, and cross-selling revenue can highlight the ROI of a solid CRM system.
Encourage Adoption: Winning over fee earners requires a cultural shift. Early engagement, clear benefits, and seamless integration into daily workflows can make CRM less intimidating.
Embrace Modern CRM Tech: With automation and AI, CRMs can deliver significant value with minimal lawyer input. Tools like TRĒ automatically capture, update, and enhance contacts, providing current and complete relationship intelligence without the need for data stewards.
Leverage Integration Tools: Modern integration solutions allow business development specialists to connect data from beloved finance systems to drive real data analytics, further enhancing the value of CRM tools within the firm. By integrating financial and client data, firms can gain comprehensive insights that inform strategic decisions and foster growth.
Align Technology with Strategy: Firms must invest in tools that reflect their priorities. By treating finance and CRM as equally vital, they can build a balanced tech stack that supports both billing efficiency and relationship growth.

Conclusion

Finance systems are undeniably critical – they streamline billing, optimise cash flow, and underpin a firm’s financial health. But let’s not forget what keeps the lights on: the clients. By recognising the value of modern CRMs and breaking down outdated perceptions, law firms can finally match their investment priorities with their relationship-driven ethos.

After all, the most valuable asset isn’t just a top-tier finance system; it’s the clients who trust the firm to deliver – and keep coming back for more.