The nation's largest law firms have no obligation to report their financial results to the public, however, in the today's climate, financial transparency is becoming more and more important. Clients are asking more details today about the financial state of their law firms, and even potential hires are interested in taking a closer look.

David Goldenberg, founding partner of VLP Law Group, sat down with Inside Counsel for an exclusive interview about the importance of financial transparency both for law firms and their clients and how firms like VLP are successfully implementing this practice.

“Law firms have no obligation to report their financial results to the public and while that sounds more ominous than it is, it's because they are private partnerships,” Goldenberg said. “Some of this information, such as profits per partner, is publicly disclosed, but these are often reported according to an industry standard rather than from actual data. For instance, several corporate law firms typically publish annual revenues and profits.”