Business large and small are attuned to the fact that, in some cases to comply with law, but also as good practi8ce, they need a yearly audit from accountants. Not only does an audit confirm profit and loss but will also seek to identify discrepancies and errors or, perhaps at worst, to flag out something more sinister such as an internal fraud.
Accounts and finance are of course fundamental to a business’ chance of survival but so are legal issues. For example, if your terms and conditions of trading are not suitable for purpose, include risks which you had not envisaged or are no longer up-to-date, you can end up with risk and legal liability every bit as damaging as accounts issues.
How about employment law? This is an area of law which is ever changing and evolving. A single claim in the employment tribunal which a business loses, because of not being aware of issues such as Equality law, disability discrimination or other, can destroy a business. The list goes on.
A legal audit is not always a negative or defensive measure either. Just as with a financial audit, which may identify ways of saving money or tax, having your legal documents and issues looked at may even create opportunities for you. You may have a lease of your shop or office which includes a break clause which you had forgotten about, there may be an opportunity to renegotiate on a contract.
There are a small but growing number of law firms and other sin the legal sector who are now offering both comprehensive legal audits or useful interactive legal healthchecks online. They are worth having a look at.
A particularly useful interactive legal business tool is provided by mylawyer.co.uk. Have a look and let us know what you think.