What Law Firms Can Learn from the Accounting Sector About Providing Client Services on a Global Scale

Abstract

The global economy is becoming increasingly more interconnected as companies are looking to capitalize on global markets rather than staying within the bounds of a single country. Consequently, professional service firms need to keep up with the global expansion of their clients by providing the types of services that international companies require. The accounting sector has been quick to adapt by consolidating into four major firms that provide global solutions to their clients. Law firms, on the other hand, have been slow in expanding globally. This paper will analyze the legal sector in comparison to the accounting sector to determine if and how law firms should globalize. The first part of this paper will discuss the considerations behind the move toward globalization and the general goals of professional service firms in keeping up with globalization. Part II analyzes why accounting firms have been successful in global expansion and then compares the reasons for success to the legal sector. In particular, the main reasons for the accounting sector’s success is being able to provide a one-stop-shop to clients, having a global perspective in services, taking advantage of efficiencies of scale, building trust with scale, keeping administrative costs under control, and minimizing regulatory costs. Part II will also analyze how law firms can use a similar approach despite the numerous distinct challenges facing law firms. Finally, Part III will analyze the current legal regime, in particular the Accounting Disciplines, facing accounting firms and how similar disciplines can greatly lubricate the offering of cross border legal services. Part III will also briefly explore what additional changes the legal industry needs in order to become more global and whether those changes are feasible. Overall, there is much that the legal sector can learn from the accounting sector, but some of the inherent differences between the industries appear to prevent law firms from reaching the same scale of globalization that accounting firms have achieved.