Professional Services Firm CFO and COO Roles: Law, Accounting and Engineering Firms
Professional services firms run very differently from companies.
In a company, the CFO reports to a CEO who reports to a board. In a law, accounting or engineering firm, the people who own the business are often the same people who do the work and bring in the clients. They are your bosses, your internal clients and your biggest source of revenue all at once.
Finance leaders who understand partners do very well in these firms. Those who try to run a firm like a corporate often struggle, however capable they are.
These roles are also less visible than corporate CFO roles. Many are filled quietly, through search firms or partner networks, and the job titles vary. CFO, COO, Chief Operating and Financial Officer, Finance Director, Executive Director.
This article covers how partnerships and firms are run, working with partners and a managing partner, utilisation, lockup and pricing, the overlap between COO and CFO, moving in from corporate finance and the points that should be on your resume.
How partnerships and firms are run
Firms come in several forms. Some are traditional partnerships. Some are incorporated, with partners as shareholders and directors. Some have outside investors. Larger firms often have a board or partnership council with a managing partner or CEO.
Despite the different structures, a few things are usually true.
Partners own the firm and share in its profits, often through a points or unit system.
Decisions often need partner support, and some need a formal partner vote.
The managing partner leads, but usually by consent rather than command.
Profit is distributed, not retained, so cash and working capital timing matter a lot.
People are the product. Salaries and partner drawings are by far the biggest cost.
Learn the firm’s partnership agreement or shareholder agreement early. It sets out who decides what, how profit is shared and how partners join and leave. It will shape much of your work.
Working with partners and a managing partner
Partners are smart, busy and used to being in charge of their own work. Many have strong views on finance, and some have finance training.
What tends to work:
Respect their time. Short, clear reports with the numbers that matter to them.
Be even-handed. Partners watch closely for any sign that one practice group is being favoured.
Explain, do not dictate. Show why a change helps the firm, and how it affects each partner.
Build allies. Find two or three respected partners who will support a change before it goes to the whole group.
Be discreet. You will see every partner’s numbers. Trust depends on how you handle that.
The managing partner is your key relationship. They often juggle client work with leading the firm. A CFO or COO who takes running the firm off their plate, and keeps them out of trouble with partners, becomes very valuable.
Utilisation, lockup and pricing
Three measures matter more in firms than in most companies.
Utilisation. How much of each person’s available time is charged to clients. Low utilisation can mean too many people, poor work allocation or time not being recorded.
Lockup. The time between doing the work and receiving the cash. It covers work in progress not yet billed and invoices not yet paid. Long lockup ties up cash and can squeeze partner distributions.
Pricing and realisation. How much of the standard rate the firm actually collects. Discounts, write-offs and fixed fees that run over all reduce realisation.
A good firm CFO tracks these by partner, by practice group and by client, and helps partners act on them. Often, the quickest gain is in lockup. Better billing discipline and debtor follow-up can release cash with no change to the work itself.
Pricing matters more and more. Many clients ask for fixed fees, capped fees or value-based pricing. Finance leaders who can help partners price work well, and track whether it pays, are in demand.
The COO and CFO overlap
In many firms, the CFO and COO roles overlap or are combined.
A COO might own:
Finance
People and culture
Technology
Facilities and property
Risk and compliance
Knowledge management
A CFO might own finance only, or finance plus technology and risk.
Smaller and mid-sized firms often have one executive covering most of this. Larger firms may split it across several leaders.
If you are a finance leader, a COO role can be a strong step up. It broadens your scope and makes you a business leader, not just a finance one. It also means managing areas you may know less about, such as IT projects or office moves. Be clear on what you can lead well, and where you need strong people under you. See the COO resume for how to present broader operational scope.
How search consultants see it
When I worked in executive search, firm CFO and COO briefs were among the hardest to fill well. The technical finance side was rarely the problem. The challenge was finding someone who could earn the trust of a room full of partners.
Clients often told me about past hires who had come from corporate roles and tried to change too much, too fast. Partners pushed back, and the relationship broke down.
The candidates who did well understood influence. They talked about how they had won support for change from people who did not report to them. Some came from firms already. Others came from corporate roles with lots of internal client work, such as finance business partnering or shared services.
Moving in from corporate finance
Corporate finance leaders can make the move, but it takes some adjustment.
What carries over well:
Financial reporting, budgeting and forecasting
Cash and working capital management
Systems and process improvement
Team leadership
What is different:
Authority. You will lead through persuasion far more than through hierarchy.
Profit sharing. Partner remuneration models and capital accounts are unfamiliar to many corporate finance people.
Pace of decisions. Partner consultation can slow some decisions. Others move very fast if the managing partner backs them.
The work itself. Time recording, billing, work in progress and matter or project accounting are central.
Before you apply, learn the language. Read about partnership models, lockup, utilisation and realisation. Talk to a firm CFO or COO if you can. In interview, show that you understand partners and respect how firms work. See changing industries as a CFO for how to frame the move.
Resume points
For firm CFO or COO roles, make sure your resume shows:
Partner or internal client work. Any experience advising people who do not report to you.
Working capital and lockup. Debtor, work in progress or billing improvements, with results.
Pricing and profitability. Client or project profitability analysis, pricing reviews, margin work.
People-heavy cost bases. Experience in businesses where staff are the main cost.
Breadth. For COO roles, technology, people, property or risk responsibilities.
Change led by persuasion. A project where you won support across a group of senior stakeholders.
Example achievements:
“Reduced lockup by 20 days through billing discipline and partner reporting, releasing significant cash for distributions.”
“Introduced practice group profitability reporting, giving partners a clear view of margin by client.”
“Led the firm’s move to a new practice management system, with partner support across all offices.”
A quick self-check
Can you explain utilisation, lockup and realisation in plain words?
Do you have examples of leading change without direct authority?
Does your resume show working capital and profitability results?
Have you spoken to someone who works in a firm finance or COO role?
Your next step
Write down three examples of influencing senior people who did not report to you, and turn the strongest one into a resume achievement.
If you want help with positioning for a firm CFO or COO role, my CFO resume writing helps senior leaders show the influence and commercial results that partners look for.
If you are thinking about moving into a professional services firm, book a complimentary Clarity Session.
