Top Trends Predicted to Impact Law Firms in 2023

Is your law firm ready to take on 2023 challenges and opportunities?

There are some significant trends expected to shape the legal industry in 2023. The LexVeritas team shares our opinion about a few of the most interesting ones that are shaping our growth, evolving our team, and keeping us at the head of the curve in the way we can best serve our law firm clients.

Here are some of the most interesting trends expected to impact our community in 2023, inspired by a recent article published by the College of Law.

1. Cyber security is a MUST for law firms. Attacks aren’t a matter of IF anymore, they are a matter of WHEN. Being PROACTIVE is essential.

No doubt about it, cyber security is a hot topic, and if it isn’t on your radar, it should be. According to the Annual Cyber Threat Report 2022, the ACSC received over 76,000 cyber-crime reports, an increase of nearly 13% from the previous financial year. Queensland (29%) and Victoria (27%) report disproportionately higher rates of cybercrime relative to their populations.

And there are serious consequences – the report says that on average, a malware attack costs a company over $2.5 million (including the time needed to resolve the attack. Ransomware is 57x more destructive in 2021 than it was in 2015.

Australia is an attractive target for cybercriminals, and organisations that run outdated software, or haven’t invested in their IT function for some time run a higher risk of being attacked. Law firms also rely heavily on sharing information via email, which is where most phishing attacks occur.

As many law firms wisely move towards their confidential information being communicated via secure online transfer platforms (instead of emails), they will also likely be assessing their holistic internal IT capabilities and resources.

There is an IT skills shortage, and cyber security is an ever-evolving specialty (imagine how often University case studies must be updated with new breach examples). And finding talent in-house is becoming increasingly difficult. Smaller law firms don’t have the resources or capability to be able to run IT operations 24/7, which can leave them open to cybercrime risk (and other risks). By outsourcing cyber security, and/or other IT functions to LexVeritas, law firms access top-tier technology and process but at a price point that makes sense for them.

According to Duncan Little, CEO of LexVeritas, cyber security is a priority area for all their clients.

“Cyber events are becoming the new normal. More firms are specifically being targeted by threat actors simply because of the confidential nature of the information they are entrusted with. Law firms are also moving hundreds of millions of dollars in through their trust accounts. So they are naturally an attractive target,” Duncan said.

LexVeritas clients’ cybersecurity programs are overseen by the Director of IT Operations, Andrew Murphy. Andrew and his team ensure LexVeritas clients take control of their cyber security, to reduce the likelihood, and impact, of an attack. The team has expertise in the architecture and implementation of End Point Protection (Malware Bytes, SentienelOne, Windows Defender, CrowdStrike), SIEM (Rapid7, SPLUNK), Critical Events (loss detection, ransomware, undoing crypto locks, reporting to Gov), and Essential 8 implementations.

2. Growth will be prioritised for nimble, efficient, ‘hybrid’ firms that embrace digitisation.

There is predicted to be growing demand for alternative legal services in 2023, as law firms look for more cost-effective solutions for routine legal tasks and processes, especially across IT and Finance functions.

“Coming into the legal industry, it was abundantly clear to me quickly that law firms, as a business, weren’t optimised as well as other industries. A lot of outdated technology, a lot of outdated processes,” Duncan said.

“Law firms have historically been very high margin businesses, so there was limited incentive for them to optimise because business was good. However, things are changing now where clients are becoming more aware of value-based billing and outcome-based billing.”

“More firms are now incentivised to embrace technology and find innovative ways to become more efficient,” he said.

LexVeritas can pool top-tier resources for the whole mid-tier market, allowing those firms to take advantage of best practices, ensuring more successful outcomes.

“One of the key benefits of outsourcing is that law firms can take advantage of economies of scale and utilise the expertise from our teams, in a ‘pay for what you need’ flexible model.”

3. Increased adoption of cloud technology allows for better client engagement, stronger security and the ability for lawyers to service clients from anywhere in the country.

As we move forwards with a hybrid workforce, with more remote employees and demand for greater flexibility, cloud technology allows staff and clients to access platforms and systems from anywhere in the world (as long as they have an internet connection). On-premise legal software limits firms in many ways— from VPN struggles to security challenges. 

Cloud software offers accessibility and faster speed to market. For example, obtaining e-signatures, requesting a review of legal documents online, and receiving client inquiries through online intake forms. This drives better collaboration between different teams, and better engagement with your clients. 

“Cloud software provides firms flexibility and more efficient cost structures. They no longer have to buy the servers and support the hardware on-premise, and they can flex up and down as their demand changes. This can lead to cost savings and more efficient IT operations,” Duncan said.

“From a security perspective, cloud computing helps reduces a firm’s risk. Thanks to economies of scale, cloud computing partners can invest industry-leading security infrastructure. If you choose the right provider, your firm can access a  dedicated team of cyber professionals ensuring that your cloud infrastructure is protected.”

Could LexVeritas Support Your Firm’s IT, Finance, or People & Culture Operations?

Interested to know more about how the team of legal operation experts at LexVeritas can support your firm in 2023 across IT, Finance, People & Culture? Email us at [email protected] to arrange a discussion with our Client Success Team to discuss how we can help solve operational challenges and drive better outcomes for your firm.


We pride ourselves on our ethical and transformational approach to talent management, and seek to elevate the practice of talent management in the legal industry by using systems and processes that promote best practice, while adhering to the regulatory code of conduct.

Technology is key to our point-of-difference; we combine the knowledge of our own experienced talent experts together with market leading artificial intelligence talent technology to source and place the right candidate with the right role.

We have formed strong and meaningful partnerships with law firms and their leaders, and strive to ensure the long-term success of candidates, both for themselves in their career, and for their employers. We are not interested in merely a transactional relationship and our pricing structure reflects this.

Personnel Administration

Administration is a word we all love to hate. Unfortunately, though, change is inevitable in a business, and when changes arise, they need to be dealt with in a swift and timely manner.

To aid the adjustment process, we offer employee services through our partner platform, Employment Hero. This platform gives your staff direct access to leave requests, salary adjustments, payslips, and more, leaving you with final decisions – not the administrative processes along the way. 

Transactional Accounting

Our transactional accounting team is staffed by legal bookkeepers that have extensive experience in the nuances of law firm accounting. This service offering is focused on the following key activities:

  • Accounts payable, including the processing and payment of matter related disbursements. Our team processes your supplier invoices and sets up payments to ensure your vendors are paid on time and your firm can focus on the legal matters at hand.
  • Our accounts receivable team monitors your firms bank account to ensure your client payments are allocated correctly and that your firm is receiving regular information in relation to your cash position.
  • Our general ledger team performs daily bank reconciliations on your general account as well as all your end of month journal entries.

Our focus is to enter data once, correctly, and use automation relentlessly.

Compliance Services

With an ever-increasing regulatory landscape our compliance services team ensures that your firm is meeting its compliance obligations in the following areas:

  • Lodgement of Business Activity Statements
  • Income Tax returns
  • Fringe Benefit Tax
  • Audited Financial Statements
  • ASIC Lodgements
  • Single Touch payroll
  • Payroll tax
  • Superannuation payments.

Financial Planning and Analysis

The competitive landscape that law firms operate in is constantly evolving. These changes can have a significant impact on the financial performance of a firm. As a law firm leader, you need to understand your numbers so that you are in a position of strength to be able to capitalise on opportunity or navigate challenges and risk.

Our analysts in our Financial Planning & Analysis (FP&A) team can assist you with the following:

  • M&A analysis
  • Due diligence
  • Budget preparation
  • Scenario planning
  • Cashflow analysis
  • Statutory and compliance reporting
  • Client reporting
  • Monthly director reporting
  • Implementing Microsoft Power BI

Credit Card & Travel

We understand that operating in a professional services environment requires your people to be on the move. We have partnered with Uber for Business and CT Connections to provide a land and air travel program that leverages our combined purchasing power to get more competitive rates on hotels and airfares.

We know that reconciling credit card transactions following a business trip can be laborious and time consuming. We have partnered with Serko, a best-in-class expense management platform, to significantly reduce the manual effort required in this process. Let LexVeritas do the time-consuming work for you!


Within a professional services environment your people are your greatest asset. It is therefore imperative they are paid appropriately and have access to a best-in-class rewards and benefits platform. By utilising our payroll service, you will ensure your staff have access to a dedicated payroll team to answer any payroll related questions. Our payroll team focus on:

  • Onboarding new hires
  • Offboarding terminated employees
  • Processing of pay events per your firms’ policy
  • Single Touch Payroll event and finalisation reporting
  • Payroll tax compliance
  • PAYG withholding and remittance
  • Superannuation Guarantee management
  • Salary sacrificing, including novated leases.
  • Employee expense claim management
  • Expert knowledge of the Legal Services Award

We have partnered with Employment Hero as our payroll and HR technology provider.

Workforce Planning

Planning your workforce is an essential part of safeguarding your firm into the future.

With our team, you will have access to dedicated People & Culture professionals who will assist you in identifying and meeting your future workforce requirements.

We make it our business to understand your business, to be able to provide you with the most appropriate services suited to your organisation, helping map out your staff and help you identify business critical talent you need to acquire, develop and nurture.

Employee On-boarding

Identifying a candidate can seem like a long process, but this is just the beginning.

Employee onboarding starts from the moment a decision is made on who to hire. This includes everything from issuing offers of employment to deploying all relevant induction materials.

Induction consists of a series of short online videos and compliance training, specific to your firm. These are available completely online, making it accessible to anyone, anywhere.

In the background we organise your new employee’s access to all systems and resources they require, for them to commence work on day one, and commence billing on day one.

Learning & Development

Part of developing your workforce is to ensure all staff members continue to learn and develop within your organisation.

We will work with your firm to develop materials to keep staff up to date on their technical skills and ensure they meet their ongoing compliance requirements.

Our Learning Management System (LMS) consists of a database with over a thousand development and compliance videos on a large range of topics.  We will develop a package suite to your organisation. We will further monitor compliance with regards to mandatory training and provide feedback to your leaders and managers.

Legal Automation

Legal automation is the use of software to automate the manual tasks that lawyers carry out in the course of their role.

The lawyer’s role can be seen as a mixture of advice – applying their knowledge and judgement to a given scenario – and of process, taking on the routine tasks (often around paperwork) that are necessary to fulfil legal requirements in a robust and compliant way.

Legal automation is aimed mainly at the process part of a lawyer’s job. Legal automation exists to free up lawyers’ time from low-value process work and enable them to focus on more important tasks.

Performance Management

Business success is a direct result of managing your business’ performance.

We will assist your organisation in an annual review process to ensure leaders, managers and staff are meeting to discuss performance and the impact on the firm. We will assist you identify excellent performers, to create a plan on how to further develop them, keep them engaged and incentivised.

We are experienced in managing staff performance, good or poor, and we will work with you to enhance your business performance through ensuring your staff’s performance is aligned with your firm’s goals. You can engage our staff on more sensitive matters when there is a need to establish performance improvement plans for any of your staff members.

Salary bench-marking

Securing top talent is crucial to a firm.

We will assist in salary benchmarking to make sure you are competing appropriately in the marketplace. We will be able to advise you on comprehensive remuneration packages, including incentives schemes and bonus structures.

Managed IT Support & Services

Our experienced Service Desk team are here to ensure that your team has an optimised technology experience. From managing user accounts, installing new software applications and troubleshooting issues, we are here to help.

Network, Data Centre & Cloud

We work to take the complexity out of implementing and operating the IT infrastructure that underpins the productivity of your workforce. Our Infrastructure team are focused on delivering high-quality service – robust, resilient and reliable.

End-User Computing

Optimise your technology fleet with Lexveritas’ End User Computing services. We help to manage the lifecycle of your computing hardware and mobile device fleet. From managing user accounts, installing new software applications and troubleshooting issues, we are here to help.

Security Management

Information security is an increasing concern in today’s globally digital environment. With so much personal and commercial information stored online or on a computer, it opens us up to different avenues of cyber-attack.

We partner with leaders in the IT security space to ensure your firm is locked down from any attempts to infiltrate its systems. We also provide training to staff to minimise risk in both their work and personal lives.

Strategic IT Road Map Development

In a world of rapidly advancing legal technologies, the firms that thrive will be those that align their strategic ambitions to their technology road-map. Our team has the experience and capability to help your firm realise its strategic goals by planning, designing and executing an aligned road-map.

Outsourced CFO

Our outsourced CFO service is designed exclusively for mid-tier and boutique law firms that require strategic financial advice and oversight however aren’t of the size to justify a full-time headcount. We offer flexible packages so you can leverage this expertise without the price tag of a full-time employee.

Our outsourced CFOs can assist with:

  • Profit maximisation strategies
  • Budget preparation
  • Cashflow modelling
  • Business Process Re-engineering
  • Control environment improvement
  • Management reporting
  • Financial gap analysis
  • Risk mitigation
  • Fundraising
  • Forecasting analysis
  • Scenario planning
  • Accounting and audit support
  • Firm valuations
  • Firm analysis and cost control
  • Working capital improvements

We have extensive law firm experience and have become a trusted advisor to our clients.