The Best Types of Electronic Payments for Law Firms

Law firms are businesses and modern consumers expect the same security, convenience, and flexibility to pay for legal services as they do for other transactions. If your firm doesn’t offer a variety of electronic payment options, you could be falling short of client expectations – and missing out on clients as a result.

Learn more about the options for electronic payments for law firms, their pros and cons, and how you can reap the benefits of a more streamlined payment system with law firm billing software.

The Importance of Electronic Payment Methods at Law Firms

Electronic payment encompasses virtually all technology-enabled methods of handling transactions, whether through credit card, eCheck, or bank transfer. These methods are similar to accepting cash, paper checks, or money orders, except they exist in the virtual space and not the physical one.

The COVID-19 pandemic ushered in more acceptance of electronic payment methods to avoid handling cash or physical cards, but clients have been moving in that direction for a while now. According to the 2023 Future of Payments Survey from Onbe, a market-leading corporate disbursements platform, 70% of respondents prefer to receive payments digitally and 73% prefer to shop and pay with digital methods.

This trend clearly illustrates that consumers are seeking electronic payments, even when it comes to law firms. It’s essential for your firm to modernize and offer these payment options to promote a better client experience and attract and retain clients.

Types of Electronic Payment Methods

Credit and Debit Cards

Credit and debit cards offer a convenient way for clients to pay. With a credit card, they have a revolving line of credit to pay a large bill at once and make more manageable payments over time. Debit cards function like checks or cash, allowing the client to pay a bill directly from their bank account.

According to a TSYS survey, 75% of people prefer to make online payments with a credit or debit card. It also revealed that 65% of people expect credit or debit cards to be a payment method option, even for law firms.

Pros:

• Credit and debit cards are familiar to clients and tend to be the method they use to pay for virtually everything in their day-to-day lives.
• They’re more convenient and offer a quick, easy, and secure method to pay with the peace of mind of knowing their bank or credit provider has them covered for disputes.
• For your firm, credit and debit cards get your firm paid faster. Clients are more likely to cover their bills quickly if they have a convenient method – especially if you have a secure payment platform.

Cons:

• Credit and debit cards have processing fees that you’ll either need to cover yourself or charge to the client, which is a negative aspect of the experience for clients.
• There’s a risk of fraud, but that can be mitigated with a secure payment processor.

eChecks

Electronic checks, or eChecks, are a digital version of a conventional paper check. eChecks are delivered via the Automated Clearing House, or ACH, which is how many people get their direct deposits from employers.

Conventional paper checks are falling out of favor with clients, so it’s possible that eChecks will replace them completely. According to a survey, 55% of consumers don’t use or rarely carry their checkbooks. Among young consumers, 61% have never written a check.

Pros:

• ACH processes eChecks safely, securely, and quickly, typically over the Internet.
• eChecks are safer than conventional checks, as they can’t get lost in the mail or be forged.
• eChecks have a faster delivery than a paper check that needs to be mailed or dropped off.
• The cost of processing an eCheck is much lower than a conventional check.

Cons:

• eChecks carry a risk of fraud, but this can be reduced with a compliant payment processor.
• Processing times are a bit slower than other forms of payment, such as credit cards.
• Lawyers need to follow ethical guidelines with eChecks.

Virtual Cards

Virtual payment cards are an option that’s similar to having a debit card or credit card in that they have a card number, CVC, and expiration date, but they’re only valid for one use for a predetermined amount.

Pros:

• Virtual cards are single-use for a predetermined amount, so they’re less susceptible to fraud than credit or debit cards.
• Companies can control the amount and limit unauthorized spending.

Cons:

• Predefined limits and expiration dates on virtual card payments restrict law firms’ control and flexibility.
• Technical issues with virtual card systems can disrupt payments, causing delays or failures.

Bank Transfer

Bank transfers are a simple way for clients to transfer money directly out of their bank account using their routing and account numbers. The entire process is straightforward and secure.

Pros:

• Bank transfers ensure that the funds are available.
• They can be processed quickly.
• Bank transfers are processed as wire, electronic transfer, or eCheck.
• You’ll receive an instant notification that a payment is in progress.

Cons:

• Bank transfers can face delays and errors, causing issues for law firms requiring prompt payments or fund receipts.
• Transaction fees for bank transfers, particularly international or currency conversions, can impact a law firm’s financial efficiency over time.
• Bank transfers lack transparency, making it difficult for law firms to track and reconcile financial transactions in real time compared to online payment platforms.

Mobile Payments

Mobile payments have increased in popularity with the ubiquity of the smartphone. According to data from Juniper Research, mobile contact payments will exceed 49 billion in 2023 and have grown 92% over the past two years.

Mobile pay is similar to an actual wallet and holds all the user’s credit card and banking information, except it’s stored securely in a virtual space.

Pros:

• Mobile pay is more convenient than a physical wallet since everything is stored on a smartphone.
• Clients can pay from anywhere when it’s most convenient for them.
• Clients have the option to pay with whichever method they prefer, from ACH to credit cards.
• Law firms get paid faster because clients have all their payment information at their fingertips.

Cons:

• Limited acceptance of mobile payments restricts law firms’ payment options and can cause inconvenience.
• Mobile payments pose security risks, requiring law firms to implement robust security measures.
• Law firms relying on mobile payments are susceptible to disruptions due to technical issues and connectivity problems.

Improve Collections at Your Law Firm with Bill4Time

If you want to modernize your firm to accept digital payment methods, Bill4Time’s billing, payment, and law firm invoicing software helps you support these goals. 

The native payment processor, Bill4Time Payments, allows you to accept online payments and process all transactions within the same secure system you manage your practice. Industry-low transaction fees and best-in-class payment technology get your firm paid 70% faster than average billing practices. 

With Bill4Time Payments, your firm also benefits from: 

• Legal-specific software that maintains compliance with accepting online payments 
• Custom payment links that can be added to invoices and emails to get paid from anywhere
• Payment plans with automated reminders to reduce large bills so clients pay their bills on time
• Robust reporting to easily track and allocate payments to the proper client or matter

Bill4Time reduces the administrative burden often associated with the billing and collections process by streamlining how your firm gets paid. If you’re ready to adopt online payments without worrying about compliance, you can book a demo today!

If you’re still relying on manual processes for your law firm invoicing, you can create delays in your payments and opportunities for errors that can cost you money and your reputation with key clients.

Having an invoice management process is key to handling your invoices efficiently and keeping accurate financial records. 

Continue reading to learn how to create more efficient invoice management processes that save your firm’s time, get you paid faster, and provide a stellar experience for the client.

What Is Invoice Management?

Invoice management for law firms refers to the systematic and organized handling of invoicing processes within a legal practice. It encompasses various tasks such as generating, reviewing, tracking, and processing invoices to ensure accurate and timely billing. 

Effective invoice management also involves:

• Verifying the details of legal services provided (time spent, fees, and expenses incurred) 
• Reconciling invoices with client agreements and contracts
• Ensuring compliance with billing guidelines and ethical standards

By implementing efficient invoice management practices, law firms can streamline their financial operations, improve cash flow, enhance client satisfaction, and maintain transparent and accountable billing practices.

The Timeline of an Invoice

Let’s delve into the key components of effective invoice management:

Step 1: Invoice Generation

Once legal services are provided, you can generate an invoice with detailed information about your billable time, legal services, and any expenses that pass through to the client, such as expenses for court filing fees or research.

Step 2: Verification of Invoice Accuracy

 The verification stage plays a pivotal role in confirming the accuracy of invoices. It involves cross-checking the billed amounts against agreed-upon rates, contracts, and services rendered. This step helps prevent overbilling or underbilling, ensuring transparency and fairness in financial transactions. 

The invoice approval process is often owned by the accounting department in a large firm or a senior attorney. Any adjustments to the invoice are made at this stage.

Step 3: Invoice Delivery to the Client 

Once the invoices are thoroughly reviewed and verified, they need to be promptly delivered to clients. Efficient invoice management involves utilizing appropriate channels, such as email or traditional mail, to ensure clients receive their invoices in a timely manner.

Step 4: Payment and Collections Tracking 

Tracking payments and collections is an integral part of effective invoice management. This entails closely monitoring the status of invoices, tracking payments received, and identifying outstanding balances. By diligently managing these financial aspects, law firms can proactively address any delays or issues that may arise during the payment process.

Depending on your law firm’s processes, this may be by mail or email. For a more modern approach, some firms also offer online payments or a client portal where clients can make secure payments. The client then reviews the invoice and makes a payment.

Evolution of Invoice Management at Law Firms

Historically, invoice management has been a manual process for law firms – record time, prepare invoices with billing entries, rates, and expenses, approve them, send them to the client, and get paid. However, it was rarely as simple or smooth as it should be and still isn’t in many firms.

Increased adoption of technology, the need for efficiency, and client demands have forced the largely traditional legal industry to shift its practices. Automation, in particular, offers an opportunity for law firms to streamline their processes and reduce errors in the invoicing process. This creates more accurate and timely bills that also improve client confidence and retention. 

Benefits of Automated Invoice Management

Automated invoice management offers many advantages for law firms and their clients. Here are some of the key benefits:

Reduces Manual Entry

The legal industry relies on a lot of manual processes, but they’re often time consuming and prone to error. Staff members can spend a lot of time with manual entry – sometimes resulting in double entry – that pulls them away from other tasks that they need to complete.

Bill4Time takes care of this process with automated time tracking and invoice templates to free staff time to focus on more critical tasks. It also closes the gap between the many parties involved in invoice management, reducing the risk of error and keeping everyone on the same page.

Improves Accuracy

Automated invoice management ensures accuracy by following predetermined rules to enforce billing guidelines and policies. When invoices are more accurate, the client has a better experience and fewer disputes that lead to wasted time or delays in payment.

In addition, when clients have accurate invoices, it builds trust in your firm and your services. In return, you can build positive word-of-mouth recommendations from current and past clients to generate new leads and fuel future growth.

Use Less Paper

Paper methods are expensive, cumbersome, and error prone. It’s easy for paper documents to be misplaced, not to mention that you need to search through documents to monitor and track invoices. 

With Bill4Time, you can generate, store, and deliver invoices on the same platform. Once an invoice is generated in Bill4Time, simply send it via email or the client portal. 

Simplified Payment Tracking

Once an invoice is delivered, it can feel like a waiting game until the payment is submitted. There are many variables that go into the timeline of when an invoice is paid by the client, so it’s important to have a standardized billing policy and proper collections processes.

The best way to easily track payment status and ensure your firm is paid on time is to adopt online payments. Bill4Time Payments is an online payment processor built in the BillTime platform. The same place your invoice was generated, is the same place you’ll process and allocate clients payments. 

With Bill4Time Payments, you’ll have access to OneLink, which allows your firm to create custom payment links to add to invoices, emails, or your website. Clients can use a laptop, tablet or mobile device to submit to their invoice payment front anywhere. 

As payments are submitted, use Bill4Time Payments robust payments dashboard to review the status of all your invoices. 

Robust Invoice Reports

A centralized invoice management system keeps all your invoicing and payment information in one place to stay on top of your business finances. 

With Bill4Time, you can generate robust reports to track all aspects of your firm’s billing. This includes time and expense, invoice balances and payment activity, and balance adjustments and more! 

Having a process of reporting on your firm’s financial health can help identify gaps and opportunities for your law firm.

Final Thoughts

If you’re still relying on manual processes that leave room for major errors and delays that only cost your firm in the long and short term, there’s a better way. Bill4Time’s law firm invoicing software has the modern features to streamline your invoicing process, save time, improve the client experience, and get your firm paid faster. With features like custom invoice templates, branded invoices, and automated time tracking — your firm can standardize and simplify the billing process.

In uncertain economic times, all businesses are tasked with doing more with less – including law firms.

Every business has to pay what it owes, and with the added complexity of expenses you pay on your client’s behalf, managing invoices is key to saving money and freeing cash flow.

Developing and refining your accounts payable management strategies is essential for your law firm. Let’s take a look at the basics of accounts payable management, how it works in a law firm, and how you can improve your own processes.

What Are Accounts Payable?

Accounts payable includes everything your law firm owes to creditors, such as bills from vendors that are billed to the end client or internal costs for support services.

Typically, accounts payable refers to short-term debts, which are debts that you plan to pay within a year. Long-term debts, such as mortgages or loans for business assets, are usually written as separate liabilities outside of accounts payable.

Law firm accounts payable tends to be complex with strict regulations. With a fiduciary responsibility to your client, missteps in dealing with accounts payable could have ethical implications and consequences.

The Accounts Payable Management Process

Accounts payable management is the manner in which you handle unpaid debts for third-party vendors in your law firm. This may involve acquiring favorable terms of purchase, seeking trade credit lines, or managing the timing and flow of purchases.

The specific process for accounts payable management can vary between law firms, but it generally includes:

1. Invoice Receipt: Your law firm receipts invoices from vendors for goods or services.
2. Invoice Verification: Your law firm invoices are reviewed internally to ensure they are accurate and in compliance with the agreed-upon terms and rates.
3. Invoice Approval: Once reviewed, invoices must be approved. Depending on the process at your law firm, this could mean partners or managers must go over them.
4. Coding and Recording: After the invoices are approved, they are coded with relevant account codes for tracking expenses and entered into the accounting system.
5. Payment Scheduling: Invoices that are approved and recorded are ready to be entered into the payment schedule, which includes determining the payment terms like due dates.
6. Payment Execution: Payments are made to vendors according to the payment schedule. They may be paid using checks, electronic funds transfer, or online payment platforms.
7. Reconciliation: Reconciliation involves comparing the firm’s records and the vendor statements to ensure payments have been made, the records are accurate, and any discrepancies are noted for financial reporting.
8. Reporting: Tracking and recording accounts payable activities is essential to gain visibility into your law firm’s financial health. This reporting is also necessary for legal and regulatory requirements.
9. Vendor Relationship Management: Throughout the process, your law firm must maintain communication and build a relationship with vendors to handle payment discrepancies and address inquiries.

How Do Law Firms Manage Accounts Payable?

Law firms manage accounts payable with robust systems and processes – as well as technology to assist.

Along with an accounts payable management system to ensure accuracy and timeliness, you must have an approval workflow to verify invoices and authorize payment to vendors. Depending on your internal procedures, you may need to institute multiple levels of approval.

Software like Bill4Time’s law firm invoicing software helps you stay on top of your business’ finances and accounting activity in one centralized dashboard. The billing features in Bill4Time make it easy to track expenses to ensure that you can get reimbursement from clients as needed. Since you can manage all aspects of your billing in Bill4Time, you get a comprehensive view of your firm’s finances. 

Common Challenges with Accounts Payable Management

Accounts payable management is key for your firm’s efficiency and financial health, but it can get complicated to manage. Between the reports and payment allocation tracking — here are some common challenges law firms face: 

Cost Recovery

Law firms often incur costs on behalf of clients, such as expert witness fees and court filing fees. It’s important to recover these costs and allocate them to different matters, which can be time consuming and error prone.

Billing

Similarly, law firms bill clients based on billable hours spent working on legal matters and case-related expenses. You have to track your billable hours and client expenses accurately to ensure you recover the costs you put out.

Complexity

If your law firm is juggling a range of clients and legal matters, it can be difficult to manage all of them simultaneously and track their respective expenses without a software solution to help.

Trust Accounting

If your law firm manages trust accounts for client funds, that comes with strict compliance that you must adhere to. This includes accurate tracking of client expenses, and allocating payment in the proper accounts. 

Invoice Management

Law firms receive invoices from multiple vendors for both law firm and client expenses, including court reporters, expert witnesses, research databases, and legal transcription services. All of those invoices must be processed, verified, and reconciled.

Tips to Better Manage Accounts Payable

Managing accounts payable effectively is crucial for any organization, including law firms. Here are some tips specifically tailored for law firms to better manage their accounts payable:

Establish Clear Procedures

Create well-defined accounts payable procedures specific to your law firm. Document the steps involved in the payment process, including approval levels, invoice handling, and payment methods. Communicate these procedures to all relevant staff members to ensure consistency, transparency, and efficiency.

Implement Electronic Invoice Management

Embrace technology by implementing an electronic invoice management system. This software streamlines the accounts payable process, automating tasks like invoice capture, data entry, and approval workflows. It reduces manual errors, enhances efficiency, and provides better visibility into the payment status.

Maintain Vendor Records

Accurate and up-to-date vendor records will help facilitate smooth communication and payment processing. Ensure that vendor details are correctly recorded, including contact information, payment terms, and any special instructions. Regularly review and update this information to avoid payment delays or miscommunication.

Monitor Payment Terms

Law firms often have specific payment terms agreed upon with their vendors or clients. Monitor these terms closely and adhere to them to maintain good relationships. Missing payment deadlines can strain relationships and may result in penalties or legal consequences. Consider setting up reminders or implementing automated payment plans to stay on top of payment deadlines.

Track Expenses 

Stay vigilant about tracking expenses associated with your law firm. Maintain proper documentation of all invoices, bills, and receipts. Accurate expense tracking allows you to review costs, allocate expenses correctly, and plan your budget effectively.

Review and Reconcile Accounts Regularly

Conduct regular reviews and reconciliations of your accounts payable records. Verify that invoices match purchase orders and are accurately recorded in your accounting system. Address any discrepancies promptly to avoid errors and potential financial issues.

Monitor Cash Flow

Keep a close eye on your law firm’s cash flow to ensure you have enough liquidity to cover your accounts payable obligations. Maintain a cash flow projection and regularly review it to anticipate potential shortfalls or surpluses. This analysis will help you make informed decisions regarding payment timing and prioritize invoices accordingly.

Remember, efficient accounts payable management not only helps maintain good financial health but also fosters strong vendor relationships and supports the overall success of your law firm.

Streamline Your Accounts Payable

Accounts payable for law firms can be challenging, but with a smooth management process in plan and support from law firm billing software, you can streamline accounts payable in your firm and improve your financial position. 

With client intake, case paperwork, court proceeding filings and other documents that pass a law firm’s desk frequently, legal document management is commonly top-of-mind for successful law firms looking to boost productivity and ensure information security. With recent lawsuits due to data breaches, legal document management has taken front stage in recent years after the pandemic pushed most practices to establish a work-from-home environment for safety.

Bill4Time actively works on legal document management features to improve — or help implement — your law firm’s retention policy. From organized workflows to document security, Bill4Time can help boost productivity and increase your law firm’s security, giving your clients the confidence they need to trust your firm.

Legal Document Management for Organized Workflows

Many law firms find managing the intake of legal documents burdensome, but necessary. Without the proper software and systems in place, important and confidential documents and information can be lost, stolen, or damaged. With software like Bill4Time, your law firm can easily manage legal documents without the hassle of paper and filing cabinets. Implementing digital legal document management software like Bill4Time can make your firm more efficient, secure, and productive.

What is legal document management?

Legal document management is the process of managing the documents that come in and out of your law firm. How these documents are stored, what security measures are in place to protect those documents, and a solid retention policy are all procedures that every successful law firm has in place. Legal document management software like Bill4Time makes the process of managing confidential documents easy and secure, so law firm managers can focus on the big picture.

Once your digital legal document management procedure/process is in place, it allows firms to more easily store and manage documents, reducing the time finding information, properly saving files, and eliminates the worry of stolen, damaged or lost documents. Creating a streamlined system for legal document management gives legal practice managers more time to focus on their cases instead of tracking down runaway documents and information. 

What’s the best way for firms to organize legal documents?

Traditionally, especially before online storage options like cloud storage were available, firms would store hard copies of documents in their office. You could find important and potentially confidential documents in open filing cabinets, unorganized storage closets, unlocked desk drawers, and more. Today, firms have access to more secure methods of document storage and management. Digital software has entered the chat, creating a more cohesive and collaborative work environment that allows law firm teams and clients to manage client intake, form submittals, and paperwork online.

Enhance Internal Operations with Bill4Time Document Management Features

Remove Law Firm Boundaries with Mobile Practice Management

Modern law firms are constantly on the go. Creating an environment that nurtures mobile, constantly moving working conditions is key to staying in-the-know when it comes to newly offered digital solutions for law practices. Implementing digital software with a cutting-edge mobile app like Bill4Time, law firms can manage their practice on the go. Firms can access documents and information for their practice from the courtroom, the office, or on a plane. Legal document management can be done on any mobile device with Bill4Time.

Safeguard your Documents with Unlimited Document Storage

Many problems firms face when choosing a digital law practice management software is the lack of storage. Using a software that offers unlimited storage not only allows firms to focus on information gathering, but also removes the worry of losing important documents while maintaining a strict retention policy. Bill4Time offers unlimited storage and uploads to the software, allowing mid and large firms alike the ability to organize extensive inventory of client and matter files across the entire firm.

Elevate your Practice’s Performance with Firm-Level Document Organization

While legal document management mostly focuses on the organization and security of clients’ files, law firms still need a structure for their own documents. Keeping all firm-level documents in an organized and specific area, attorneys, marketing professionals, and administrative and operational staff can access key documents needed for the management and operation of the law firm.

Client and Matter File Management Made Easy

Successful law firms know the importance of details. Having a software that allows firms to bring a certain level of detail to their practice can only help, especially in the long run. With Bill4Time, firms can take control of file management with the ability to upload and download client files to specific folders at various levels of the file tree. Rename individual files to fit the firm’s naming conventions. Duplicate files for easy re-use before moving the file into the correct folder context. This level of organization brings a sense of calm to a potentially chaotic filing system, allowing firms to quickly retrieve information without sorting through hundreds or thousands of digital files and hard copies.

Effortlessly Customize and Seamlessly Move Folders to Fit your Practice

Whether a firm is new to file organization and just starting out, or has a developed structure for saving and organizing files, Bill4Time has customizable folder creation that allows firms to organize files in a way that firms and their staff can search and understand. Digital legal document management can be easy when the right software can nearly read your mind when it comes to file structure, making the migration process easy and intuitive. Use Bill4Time’s pre-made file structures or create custom ones from scratch — either way, firms are setting themselves up for success.

Powerful Search Functions for Fast Discovery

Instead of sorting through and scanning hard copies of documents to find the one needed, a document search function can eliminate hours of searching by allowing users to enter a word or phrase in the search bar to find files. This heightened level of navigation in Bill4Time saves attorneys, paralegals, and administrators invaluable time.

Cloud Storage Integrations

One of the easiest ways to make your firm’s legal document management process a breeze is by using a cloud-based storage integration. When these files and documents can be seamlessly synced, it reduces the chance of error. Your law firm can integrate your Box or NetDocuments account directly to your Bill4Time account, syncing the file structures to create a more cohesive document management system.

Get a Demo

Bill4Time understands the importance of legal document management. With integrations and cutting-edge features, Bill4Time allows you to manage your firm from anywhere. You can download the Bill4Time app on Apple Store or Google Play today. If you want to learn more about Bill4Time and how it can help your firm’s legal document management procedures to reach your firm’s goals, schedule a demo today.

Law firms use the Uniform Task-Based Management System (UTBMS) to list and categorize services on client invoices. The UTBMS comprises a coding structure to ensure each task is completed, documented, and categorized. This way, law firms can accurately gauge spending habits and quickly identify any problems that arise.

What Are ABA Task Codes?

The American Bar Association (ABA), the Association of Corporate Counsel (ACC), and PricewaterhouseCoopers (PWC) originally developed UTBMS codes, but now the Oversight Committee (OC) at Legal Electronic Data Exchange Standard (LEDES) maintains them.

The purpose of these codes is to standardize and categorize legal services and expenses, enabling law firms to easily monitor and analyze these data.

Types of ABA UTBMS Codes

ABA UTBMS codes help law firms monitor their spending habits and other related activity.

A100 Activities

Activity codes reflect the type of activity and its associated cost.

• A101 Plan and prepare for
• A102 Research
• A103 Draft/revise
• A104 Review/analyze
• A105 Communicate (in firm)
• A106 Communicate (with client)
• A107 Communicate (other outside counsel)
• A108 Communicate (other external)
• A109 Appear for/attend
• A110 Manage data/files
• A111 Other

Counseling

Counseling is a more general category. These codes account for the time lawyers spend providing legal advice.

• C100 Fact Gathering

• C200 Researching Law
• C300 Analysis and Advice
• C400 Third-Party Communication

E100 Expenses

Expenses codes will categorize your spending, enabling you to budget better.

• E101 Copying
• E102 Outside printing
• E103 Word processing
• E104 Facsimile
• E105 Telephone
• E106 Online research
• E107 Delivery services/messengers
• E108 Postage
• E109 Local travel
• E110 Out-of-town travel
• E111 Meals
• E112 Court fees
• E113 Subpoena fees
• E114 Witness fees
• E115 Deposition transcripts
• E116 Trial transcripts
• E117 Trial exhibits
• E118 Litigation support vendors
• E119 Experts
• E120 Private investigators
• E121 Arbitrators/mediators
• E122 Local counsel
• E123 Other professionals
• E124 Other

L100 Case Assessment, Development, and Administration

Toward the beginning of using UTBMS codes, combining L100 with activity codes is typical.

• L110 Fact Investigation/Development
• L120 Analysis/Strategy
• L130 Experts/Consultants
• L140 Document/File Management
• L150 Budgeting
• L160 Settlement/Non-Binding ADR
• L190-Other Case Assessment, Development and Administration

L200 Pre-Trial Pleadings and Motions

Expenses codes are typically paired with these litigation codes.

• L210 Pleading
• L220 Preliminary Injunctions/Provisional Remedies
• L230 Court-Mandated Conferences
• L240 Dispositive Motions
• L250 Other Written Motions and Submissions
• L260 Class Action Certification and Notice

L300 Discovery

• L310 Written Discovery
• L320 Document Production
• L330 Depositions
• L340 Expert Discovery
• L350 Discovery Motions
• L390 Other Discovery

L400 Trial Preparation and Trial

• L410 Fact Witnesses
• L420 Expert Witnesses
• L430 Written Motions and Submissions
• L440 Other Trial Preparation and Support
• L450 Trial and Hearing Attendance
• L460 Post-Trial Motions and Submissions
• L470 Enforcement

L500 Appeal

• L510 Appellate Motions and Submissions
• L520 Appellate Briefs
• L530 Oral Argument

Project Codes

These codes categorize legal tasks for non-litigation, such as administrative work and filing. P200, specifically, focuses on the time attorneys spend investigating a case. P300 to P800 are the additional codes.

• P100 Project Administration
• P200 Fact Gathering/Due Diligence
• P210 Corporate Review
• P220 Tax
• P230 Environmental
• P240 Real and Personal Property
• P250 Employee/Labor
• P260 Intellectual Property
• P270 Regulatory Reviews
• P280 Other
• P300 Structure/Strategy/Analysis
• P400 Initial Document Preparation/Filing
• P500 Negotiation/Revision/Responses.
• P600 Completion/Closing
• P700 Post-Completion/Post-Closing
• P800 Maintenance and Renewal

Importance of Properly Tracking ABA Task Codes

Using and properly tracking UTBMS offers various benefits, such as:

• Invoice transparency: If a client receives an invoice with just a final payment amount at the bottom — they may be hesitant to pay it without a full list of services performed and expenses. Documenting every task, no matter how small helps create billing transparency.

• Organization of tasks: Managing multiple clients and tasks can be difficult to organize. Implementing the short and efficient UTBMS codes in an invoice keeps everything uniform and easily identifiable.

• Easily generating and categorizing reports: UTBMS codes make it easy to create, organize, and categorize legal tasks and expense reports.

• Monitoring billing guidelines and spending: UTBMS codes allow law firms to keep tabs on spending habits throughout the year, enabling them to identify areas for opportunity and make more informed billing decisions.

Best Practices to Track UTBMS Codes

UTBMS codes are only as effective as their proper implementation within a law firm. To ensure their usefulness, firms must establish clear and ethical billing guidelines and best practices for tracking these codes. This can be achieved by following the best practices outlined below:

• Consistently using UTBMS codes throughout the firm
• Training staff on how to properly use UTBMS codes
• Utilizing software to manage UTBMS codes and generate expense reports
• Standardizing naming conventions

By implementing these best practices, firms can:

• Set clear expectations from the outset
• Avoid confusion among staff members
• Analyze revenue generation
• Gauge client satisfaction or dissatisfaction

Legal billing software can also aid in this process by providing:

• Automated and customizable invoice templates
• Tools for tracking expenses
• Automated time tracking 
• Online payment options

Use Bill4Time for Streamlined Time and Expense Tracking

UTBMS codes help law firms categorize expenses and services performed when sending clients invoices. However, manual entry and tracking of UTMBS can make the process cumbersome. 

With Bill4Time, your firm can manage expenses, perform essential billing functions, generate invoices, and more in one place. Equipped with essential ABA UTBMS used by law firms, Bill4Time makes it easy to create naming conventions for expenses and track them with custom reports.  

Before we jump into accounting reports, let’s take a step back and picture how people invest time into their everyday lives on different levels. Think about what specific goals you want to achieve either in your professional or personal life. Health, family, business and fitness may come to mind.

Reports on any progress made is critical to making improvements, whether it’s a post-workout report on your fitness watch, your annual check-up review at your kid’s pediatrician’s office, or a spending report from your bank. These reports, full of specific and actionable data, help evaluate progress and improve for future endeavors. The same principles can apply to understanding the financial health of a law firm. Are you able to view your financial progress and make informed decisions? How can your business improve without understanding how it’s doing currently?

Effectively using accounting reports is vital to improving business performance. Let’s explore how Bill4Time’s custom reporting capabilities allow users to gain insights to help their firms and small businesses make knowledgeable decisions on business financials and operations.

Gain Access to Robust, Customizable, and Easily Shareable Accounting Reports

Accounting reports are vital to healthy business operations and help users understand and digest a company’s ledgers. With over 400 reports, your small business or law firm can use Bill4Time custom reporting features to better manage your business.

With the proper digital software, you won’t have to stress over finding relevant reports for your firm. Bill4Time customizes the reports your account has access to specifically for your type of business or practice area.

Depending on your plan and business, users can have access to anywhere from 50-100 reports to help you manage operations. To share reports, you can easily export your data as a PDF or CSV for additional analysis. Bill4Time fosters a team environment while maintaining the individual users preferences like favorited and bookmarked reports — we’ll talk more about those later.

Bill4Time’s Most Popular Accounting Reports

Income Statement: An Accounting Overview Report

An income statement is an accounting report that details a business’s net profit. Income statements are also sometimes called a profit-and-loss report. It includes a business’s invoices, both paid and unpaid, any income, and expenses to provide a detailed revenue report.

In Bill4Time, firms can use the account activity report to show a history of payments, invoices, and balance adjustments by client. Similar to an income statement, the account activity report shows the firm’s income from clients, both paid and unpaid invoices, and more information on specific payment details. Firms can also track expenses within Bill4Time, keeping businesses organized without the clutter of receipts.

Balance Sheet: The Current Financial Status Report

A balance sheet shows the ending balance of an account at a specific date. This gives firms a snapshot of their current assets. While used more currently than retroactively, a balance sheet helps inform businesses of their financial position at a certain point in time.

The account balance report in Bill4Time shows the balance due (amount invoiced without payments applied) and the unbilled (amount that is currently waiting to be invoiced) for each matter. This gives firms the ability to see what revenue is in, pending, and needed to be allocated, allowing them to make financial decisions based on their current situation.

Cash Flow Statement: The Money Tracker Report

A cash flow statement is exactly how it sounds — it details how cash flows in and out of a business. This kind of report can help business owners and law firm managers make decisions on business accounting and financials.

The collections report in Bill4Time shows payments collected toward each invoice, the users, and their billable amounts per payment for applied payments. This is similar to a cash flow statement with the details of cash coming into the business. The collections report shows all allocated payments collected towards each invoice, giving firms the ability to evaluate account activity.

Transform Your Firm’s Profitability with Reporting Features in Bill4Time

It’s one thing to have access to reports, but it can be a gamechanger when you know how to use them effectively. With easily accessible features that allow you to customize the way your small business or law firm runs reports, you can quickly get up and running to use Bill4Time to increase productivity

Accounting Activity at Your Fingertips Provides a Comprehensive View

In Bill4Time, your accounting activity is easily accessible which allows for quick and efficient reporting — even a quick check-in to put any last-minute fires out. Keeping this information readily available frees up your time to focus on other big picture business decisions. With Bill4Time Payments, firms can accelerate cash flow by overcoming one of the biggest challenges to getting paid — invoicing. Using Bill4Time’s invoicing and billing features can increase the accuracy of reports by automatically syncing any data entered.

Review Projects & Productivity to Plan for a Successful Future

Within Bill4Time reports, firms can view organization productivity month over month, year over year, allowing an understanding of workflow and efficiencies. Bill4Time gives firms the ability to understand which projects and matters are consuming the most time, allowing managers to make changes to processes to increase firm productivity and workflow. The Bill4Time reporting features also allows firm managers to evaluate which team members are bringing in the most business, providing insights to help better align compensation based on new revenue generated.

Optimize Efficiency with Favorite and Bookmark Reports

WIthin Bill4Time, there are many reports you can run, but there are some that certain users use more than others — depending on your role and the data needed to be pulled. If there’s a report users find they use more frequently, they can bookmark that report by clicking the flag on the right side of the web page for easy pulling later.

Favorite reports are similar, but dive into specific clients or matters that are run often. If you find you are running a report for a client or matter, you can run the report, enter your specific details for the report to pull the data, and enter in the description details about that report. Once it’s run, it is automatically saved as a favorite since it was created in the favorites tab. After it’s favorited and you go back into the report, all the details are already pre-populated and you can run that report automatically.

Unlock Your Firm’s Potential: Get a Bill4Time Demo

Bill4Time offers plenty of reporting tools for business management. Plus, you can organize files, plan your calendar and tasks, communicate with clients, and manage your firm from anywhere. You can download the Bill4Time app on Apple Store or Google Play today. If you want to learn more about Bill4Time and how it can help your firm add reporting features to reach your firm’s goals, schedule a demo today.