CFO Series: Uniting Legal and Finance Teams for Success

In the world of Software as a Service (SaaS) companies, achieving a working partnership between legal and finance teams is a business essential. When legal and finance form the dynamic duo required to overcome obstacles and pilot business success, the entire organization gets ahead.

How can they collaborate?

Transparent communication, shared workspaces, and team-building exercises are just some ways to foster harmony. Enterprise legal management (ELM) solutions offer another way, by providing standardized templates and an up-to-date clause library, minimizing the stress of inconsistent phrasing, and making sure contracts contain relevant terms.

ELM solutions also streamline the contract process for finance teams, making adherence to internal controls effortless and seeing that compliance is integrated into every contract without creating additional burdens.

Why should they collaborate?

Risk management: Legal and finance teams form the company's first defense line. This collaboration ensures regulatory compliance and financial management, forming a formidable fortress of protection.

Strategic decision-making: Make bold business moves with confidence, knowing that your legal team provides the safety net of regulatory compliance, while your finance team crafts the strategic path to prosperity.

Regulatory compliance: In an environment of ever-evolving regulations at both national and international levels, maintaining compliance is paramount to success. The legal team negotiates the complexity of legislation while the finance team establishes financial compliance with these intricate rules.

Deal acceleration: Whether you’re a general counsel or a legal ops manager, you wield the expertise to expedite contracts and deal-making. When combined with the finance team's understanding of investment risks and returns, your business transactions will proceed with speed, action, and awareness.

“Silos in finance and legal teams can make things clunky for the people asking us for help. When we dial in our processes and get on the same page, suddenly deals start syncing a lot faster. It's all about cutting out the noise so we can all move forward together,” says Ashlyn Donohue, director of legal at LinkSquares.

Operational efficiency: You’re better together. The legal and finance teams achieve operational efficiency by maintaining open channels of communication, sharing expertise, and eliminating redundancies.

The risks of isolating these two critical teams are significant, involving potential financial and legal pitfalls that can translate into substantial losses. Therefore, it’s crucial to foster collaboration and unity among these teams for truly successful risk management.

When legal and finance teams join forces, a company not only creates an operational structure but also paves the way for innovation and strategy. By integrating the expertise of these two departments, organizations can better navigate the rapidly changing business landscape, building a relationship that stands the test of time.

Eager to explore how your legal and finance teams can collaborate effectively within a single platform? See LinkSquares in action.