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    Time Tracking Best Practices

    by SimpleLaw on
    Attorney Time Tracking

    Time tracking. Seemingly so simple yet it can be quite a daunting task to get right. Getting into the details and setting up a standard process is key. Using a method to track it creates greater efficiency for the entire billing cycle, too. Let's get into it.

    Define Tracked Activities

    Certainly, if the matter is being billed based on hours spent,  you must track that time. But what qualifies as billable time? Does making copies, travel time,  or other administrative tasks qualify for billable time? The devil is always in the details here. We strongly recommend reviewing the ABA professional conduct rules to ensure you are in compliance with best practices. Once the firm decides which activities are to be billed, make sure your clients are aware prior to creating that invoice. Upfront communication solves 90% of future problems.

    To ensure clients are informed of your time tracking policy, be sure to include that in the agreement. This is important enough to spend a few moments with the client to make sure they have read the agreement and understand it. If the client is in disagreement, discuss prior to starting the matter. It may be enough of an issue that you may not want to accept the client. Your firm should be open to adjusting your policy if you see consistent pushback from clients. 

    Define a Tracking Method

    Paper is great. It's easily available and you can write down anything you want. However, it's also easily misplaced. And inconsistency can create issues when it comes to invoice creation. It's best to think holistically when it comes to the tracking method. Once the hours are tracked, how do invoices get created? How do clients pay their invoices? How are paid or unpaid invoices managed?

    Taking a holistic approach streamlines the entire process. Clearly, we are fans of using technology to manage the entire process. There are several options out there. Be conscientious about the benefits vs the cost. For the same cost of time tracking and invoicing software, you can subscribe to a full platform, like SimpleLaw. Be sure to consider beyond the first layer of options... there's a lot of great tech out there.

    Enter Time Daily

    I don't know about you, but from time to time I'm not entirely sure where my day went. I look up and it's 3pm. For that reason alone, be sure to enter or track your time daily. Even better, track your data as you complete various tasks. It's important to be fair to your firm, and the client, to bill as accurately as possible. Doing this daily protects both of you.

    Whether jotting it down on paper or entering it into software, the sooner you track the time spent, the more accurate it will be. Carve out the last 30 minutes of your day to track your time if you haven't done it during the day. Be as accurate as you possibly can be. 

    Provide a Short Description

    Sure, you can go on and on about the work you do. And it's certainly warranted. However, for clients reading their invoices, it needs to be easily understood. Perhaps add a nod to the purpose of the effort too. As mentioned above, clear communication can alleviate 90% of future problems.

    Remember that the description should not be too long either. Yeah, there is a sweet spot. Practice makes perfect. Don't use legal jargon, unless absolutely necessary. As an example:

    • Don't: Documentation Review
    • Don't: Review of initial draft of agreement with a focus on terms used and timeframe of completion to ensure all due dates are met and all parties have reviewed and initialed all appropriate fields.
    • Do: Review documentation details to ensure compliance with XYZ

    You get the idea. It's an art that needs some practice to get just right.

    Review and Improve

    As with all things, once you get started, see how it's working. Continuous improvement simplifies the process and time required. To be sure you are moving in the right direction, monitor how long it takes for the firm to track time, create invoices, etc. with the current method. Check the daily time use efficiency. Are attorneys billing 4 hours a day now? Does this change after a new method? It could be your firm underbills clients, which is fairly common. 

    Time tracking is key to ensuring your firm is accurately and fairly compensated for the work. Taking an active approach to ensuring accuracy, ease, and efficiency increases the overall health of the firm. 

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