Running a Small Law Firm: The Complete Operations Checklist

Everything a small UK law firm needs to run; from client onboarding to SRA compliance, billing, IT, and risk management; in a single practical checklist.

Running a small law firm means being a good solicitor AND a good business operator. Most solicitors are good at the legal work. Fewer are good at the operational side; the systems, processes, and compliance frameworks that keep the firm running, profitable, and regulator-ready.

This checklist covers everything a small firm needs to operate; not in theory, but in practice. Use it as a self-assessment: go through each section and check what you have in place and what's missing.

Client onboarding

[ ] Client care letter template that covers scope, fees, and billing arrangements
[ ] KYC and AML checks at instruction; identity verification, PEPs/sanctions screening
[ ] Source of funds verification for conveyancing and probate matters
[ ] Conflict check at file opening; see our guide on acting for both parties
[ ] Privacy notice provided to the client (see GDPR guide)
[ ] Engagement letter signed and filed to the matter

Matter management

[ ] Every matter has a responsible fee earner and supervising partner
[ ] Key dates recorded at file opening (limitation dates, court dates, completion dates)
[ ] Deadlines tracked in a central system; not individual diaries
[ ] Document management with per-matter folders (ideally SharePoint)
[ ] Client communication logged against the matter
[ ] File closure process followed when the matter ends

Time recording

[ ] Time recorded contemporaneously; in six-minute units, with narrative
[ ] Time recorded on fixed-fee matters as well as hourly
[ ] Daily timesheet review; check the day's time is complete before going home
[ ] Alternative capture methods available; WhatsApp for out-of-office time, Outlook capture for email time
[ ] Time entries have enough narrative that the client could understand the bill

Billing and finance

[ ] Client and office accounts separate and clearly named
[ ] Client account reconciled at least every 5 weeks (monthly recommended)
[ ] Interim billing on long-running matters
[ ] Final bill issued promptly on matter completion
[ ] Payment options include card payment (Stripe); not just bank transfer
[ ] Disbursements tracked separately from professional fees
[ ] No residual balances on closed matters
[ ] Accounting records synced with Xero or QuickBooks for the accountant

SRA compliance

[ ] COLP and COFA appointed and documented
[ ] MLRO appointed
[ ] Firm-wide AML risk assessment completed and current
[ ] AML policies, controls, and procedures documented
[ ] SRA Accounts Rules compliance; client money handled correctly
[ ] Transparency Rules; pricing information published on website
[ ] Complaints procedure documented and signposted to Legal Ombudsman
[ ] PII (professional indemnity insurance) in place and adequate
[ ] Annual reporting to SRA up to date

Data protection

[ ] Privacy notice on the firm's website and provided to clients
[ ] Data retention policy documented and followed
[ ] Access controls on client data; not everyone can see everything
[ ] Multi-factor authentication on all systems
[ ] Staff trained on GDPR and data protection
[ ] Breach response plan in place
[ ] Subject access request process documented

IT and systems

[ ] Practice management system in place; not relying on spreadsheets and email
[ ] Document storage in a secure, access-controlled system (ideally SharePoint)
[ ] Email with professional domain (not @gmail or @btinternet)
[ ] Secure communication for sensitive documents; not plain email attachments
[ ] Backup and disaster recovery plan
[ ] 2FA on all accounts; email, practice management, banking
[ ] Mobile device management if staff access data on phones or laptops

Risk management

[ ] Conflict checking at every new instruction
[ ] Limitation dates identified and tracked
[ ] File review process; supervising partner reviews files periodically
[ ] Professional negligence risk assessed; are there matter types where the firm is exposed?
[ ] Client money handled correctly; no unauthorised transfers

Client communication

[ ] Client care letter sent at the outset of every matter
[ ] Regular updates on matter progress; not just when something happens
[ ] Clear, jargon-free communication
[ ] Closing letter at the end of every matter
[ ] Client feedback collected (informally or formally)

Business development

[ ] Website with transparency information (pricing for required services)
[ ] Google Business Profile claimed and up to date
[ ] Active on at least one marketing channel ( referrals, LinkedIn, local networking)
[ ] Matter types and pricing reviewed quarterly
[ ] Client satisfaction monitored; repeat work and referrals are the best indicator

People

[ ] Staff contracts in place and current
[ ] AML training completed annually for all staff
[ ] Data protection training completed annually
[ ] Supervision structure documented; who supervises whom
[ ] Appraisals or performance reviews conducted at least annually
[ ] SRA training requirements met for solicitors and trainees

Where OrdoLux fits

OrdoLux is a matter-centric practice management platform designed for small UK law firms; one workspace per matter with time recording, billing, documents, compliance, and client communication in one place. Priced at £50 + VAT per user per month, rolling monthly, with no per-module pricing and no lock-in.

OrdoLux includes Checkboard for KYC/AML, SharePoint document storage, Stripe card payments, built-in e-signature, 350+ HMCTS court forms, SRA-compliant accounting, and WhatsApp time capture; all included.

See all features or book a demo.