Best Practices for Time Tracking for Lawyers

One of the primary features attorneys ask us is about getting a hold of their time tracking and billing features. Certainly, this is a challenge to make sure each attorney is tracking their time correctly. Underbilling is not good for the firm. Overbilling is worse. The answer is to bill the amount of time actually worked, naturally. These tips will help you do just that.

Record Time As You Work

This is by far the biggest and most important tip. Rather than waiting until the end of the day, or worse yet, the week, track the time as you work. There are so many time tracking tools out there. The trick is to monitor them. We can't tell you the number of attorneys who ask for automated time tracking - which we used to offer - but then forgot to switch to the next matter. At the end of the day, the time tracked only the first item entered. 

We love technology, obviously, and know that it is a useful tool to help law firms streamline the admin function, and much more. But no tech is going to solve your problem entirely without your active participation. That's all there is to it. Our software offers a timer that users can start, pause, and stop. When they are done with that task, the time is automatically entered into the time entry and matter. But that relies on the user remembering to turn it on, pause, and turn it off to enter the time. That feature is common on most case management software platforms. The trick is to be sure you monitor and adjust as you work throughout the day.

Use Case Management Software

A good case management software platform saves your firm a lot of time and helps to keep track of your time. But the downstream benefits are equally if not more important. How long does it take your firm to complete the monthly billing cycle? If you aren't tracking your time in the same platform where invoices are generated, as case management software supports, you are likely spending unnecessary time moving or re-entering data. The beauty of case management software is the lack of data silos.

Invoices can be created in a few clicks, with all the information you already entered automatically filling the invoice. Users can preview each invoice, adjust notes, edit entries, and more, all within the same platform. What's even better is the invoices are accessible to the client through their portal. They can view the and pay them all through the portal. Be sure your case management software offers a client portal without having to pay extra for that benefit. 

Communicate Terms Clearly

Communicate them early, clearly, and repeatedly. Most clients don't typically have an ongoing legal issue. As such, they may not remember everything you say. Provide the terms in the agreement, through the portal, or however, they prefer to access it. Be specific about what work is considered billable, any time rounding specifications, when invoices can be expected, the options available to them to pay, payment date requirements, and any additional fees if invoices are not paid on a timely basis.

Be Clear and Specific

As they say, the devil is in the details. When entering the description for the hours worked, be very clear and specific. While there is nothing wrong with using some legal terms, be sure they are easily understood by the client. The more you can anticipate the potential questions from the client when entering the description, the happier the client will be. Be sure to include a detailed description of the work completed during each time period. Not only does this help the client understand, it reduces the potential for disputes.

Bill on a Timely and Regular Basis

Clients have a lot on their minds, most of the time. And one of their concerns is the cost they are incurring. Be sure to inform your clients of your typical billing structure and timing. Naturally, be upfront in terms of payment terms. Are invoices due upon receipt for expenses but hours can be paid within 30 days? Will you send separate invoices for each?

And then, once you communicate this, be sure to follow the process as close as possible to the timing you described. Not only does this help ensure the firm is paid on a timely basis, helping to manage cash flow, but it also builds trust with your clients. With a client portal, if the client does have questions, they can note those in the portal and keep this communication from going through the email process.

Keep Communication Open

Be sure to let the client know if any issues come up in billing or disputes. If some aspect of the matter is proving to be more complex or requires extensive time, let the client know. Good news is ok too if things are moving faster than you anticipated. Give the client options on how to communicate with you, asking questions regarding invoicing, payment terms, or individual entries on an invoice. Be sure to respond to the client in a timely manner. 

Overall, billing can be a challenging task for lawyers, but with the right tools, like case management software, and practices noted above and others, it can be done efficiently and effectively. And not require extensive unbillable time for your firm. After all, if the software can streamline the admin stuff, that leaves your firm with more time to practice law.