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Lawyer Time Tracking Tips to Boost Efficiency

Lawyer Time Tracking Tips to Boost Efficiency

December 17, 2024 By Nina Lee Leave a Comment

Time is of the essence for law firms. Not only is accurate lawyer time tracking vital for record-keeping and tracking billable hours, but wasting time on manual tasks and following archaic processes distracts from what’s important: practicing law and growing your firm. 

Many lawyers choose to track time the old-fashioned way: manually recording their time in logs and calendars. But this introduces the possibility of inaccurate timekeeping, missed billable hours, and — especially if your firm is large or growing — inconsistent record-keeping habits amongst your staff. As a result, you lose time, money, and even clients.

To assist with this problem, this blog explores how outdated time tracking methods hold firms back and offers practical tips to modernize the process. From understanding the importance of six-minute increments to leveraging legal time tracking software, you’ll learn how to boost accuracy, reduce missed income, and avoid common mistakes.

What Is Legal Time Tracking?

What Are the ABA Guidelines on Time Tracking?

Legal time tracking is when a lawyer records how much time they’ve spent working for a client — whether it’s in the office, in a courtroom, or on the go. The American Bar Association (ABA) sets guidelines for legal time tracking. First-timers, especially, should:

  • Regularly check their bills. That way, you can avoid getting accused of padding hours (i.e., rounding up and overcharging clients).
  • Charge reasonable fees in accordance with Model Rule 1.5 or your state’s equivalent. This number can help monitor your hours and share if you over or undercharged someone.
  • Use time tracking tools to help ensure accuracy and organization. You can log your hours via your phone, computer, or tablet.

What Are Lawyers Using to Track Their Time?

Legal time tracking has evolved in the past several years and moved away from handwritten notes on notebooks or sticky notes. Some continue to use Excel spreadsheets, but even these are prone to error due to manual entry and a host of other issues. Overall, the busier you get, the more difficult it is to stay organized and stay on top of logging.

Nowadays, many attorneys are switching to automated time tracking software solutions. This technology allows you to log your hours right away and track how long you’ve spent in meetings, making phone calls, writing and sending emails, and going from website to website, among other tasks.

By the end of the day, you can easily figure out what you did and how long you spent on each client. It’ll give your administration team less of a headache when you submit your hours and send clients’ invoices.

How Does Legal Time Tracking Software Work?

Legal time tracking software is a simple and efficient way to accurately log your time working for your clients. Bad timekeeping is the culprit for up to 50% of lost billable time, and legal time tracking software is the best way to combat this. All you need to do is start a timer on your computer, phone, or tablet and enter how much time you spent on a task.

You may think, “Well, yeah, but why do I need software to do that when I can do it on my own?”

You’d be interested to know that that’s just one benefit of having legal time tracking software, as it also offers:

  • Flexible time tracking: This feature covers recording billable and non-billable time, separating tasks unrelated to internal non-client time and keeping track of staff, consultants, and other colleagues.
  • Staying on top of your time spent on clients: With legal time billing software, you can check your weekly time summaries, so you can gauge your firm’s financial status and productivity.
  • Easy time entry: This feature allows you to run multiple timers on one screen and account for appointments as time entries.

These features can make every billable hour count so you can charge your clients and get paid fairly.

How Does Legal Time Tracking Software Work

What Should I Look for in Legal Time Tracking Software?

There are multiple legal time tracking apps to choose from, so it may be overwhelming to find one that best fits your needs. To start, ask yourself which features would be most important to you. While you’re doing your research, see if the time and billing software offers:

  • Convenience: Hours, tasks, phone calls, meetings, upcoming events, and every document you can think of. Do you have to be in the office at your computer to log this information, or can you do it anywhere?
  • Accuracy: Accuracy should be one of your firm’s highest values, and the software you choose must reflect that. Does the software help your firm cut back non-billable hours? Does it allow you to go back and make a correction if you didn’t stop your timer or need to update a client profile? If the answer is no, you may want to keep looking for technology that leaves wiggle room for human error.
  • Accessibility: See if the software produces periodic reports on timekeeping. Knowing what you’re dedicating your time to and for how long helps you make more well-informed decisions about the direction of your firm.

There’s more to a legal software app than just timekeeping, so check out the other features the software offers that keep all aspects in check. That includes case, task, and documentation management, trust accounting, invoice template customization, and system integration.

Bill4Time is the way to go if you want to get to a point where you’ll barely have to think about legal billing. It’ll do the work for you, so you can focus on what’s most important: your clients. Within the first few hours of use, you’ll be convinced that it’s the best time tracking software. 

Common Mistakes Lawyers Make with Time Tracking and Tips to Fix Them

Below are some of the most common mistakes lawyers make with time tracking — and how to avoid them:

  1. Waiting Too Long to Log Hours: Delaying time entry until the end of the day — or worse, the end of the week or month — leads to forgotten tasks, miscalculated hours, and lost billable time. Keeping track of hours as you go is the best solution
  2. Overlooking Small, Billable Tasks: Emails, quick client calls, and short research sessions often go unrecorded, leading to significant revenue leakage over time. Track everything, no matter how small. 
  3. Failing to Differentiate Billable vs. Non-Billable Hours: Without a clear system, non-billable administrative work can blend in with client hours, skewing your records and firm productivity metrics. Use time tracking software to separate billable and non-billable tasks automatically.
  4. Losing Track of Time Spent Across Devices: Lawyers often switch between phones, laptops, and tablets while working, leading to gaps in tracked time. Choose software with cross-device compatibility so you can log hours seamlessly wherever you work.
  5. Not Reviewing Time Entries for Accuracy: Even with a strong tracking system, errors happen — like timers left running or entries logged under the wrong client. Pick a regular review schedule and stick to it.
  6. Ignoring Client Transparency: Vague or incomplete time entries raise client doubts and can escalate into billing disputes. Clearly document your time with task descriptions and use detailed reports to back up your invoices.

The best way to resolve all of these issues is using time tracking software. Having a legal time tracking app can save you time (and panic) when you have to charge your client. That way, you can easily pull up what tasks you performed and for how long when you bill your client. If there’s ever a dispute, you’ll have the evidence of your work to back up your claim right in your pocket.

The key to lawyer time tracking is making it simple. Tracking your time should be something that flows seamlessly throughout your day, no matter how many cases you’re working on. Bill4Time keeps your time tracking and legal billing in a centralized location to give you better insight into how and where your time and money are being allocated. To see how Bill4Time can do the heavy lifting for your firm, you can schedule a demo today by clicking below to see the platform’s time-saving features in action. 

Get a Custom Bill4Time Demo

Filed Under: Blog Tagged With: time tracking

What Software Is Used To Keep Track of Billable Hours in Law Firms?

December 9, 2024 By Taylor Dahlem Leave a Comment

Legal time tracking software is the preferred solution for managing billable hours in law firms, providing support that goes far beyond what a simple spreadsheet or notepad can offer. While an attorney time tracking template can be helpful for basic organization, it often lacks the precision and features needed to meet the legal industry’s strict requirements.

If you’re a legal professional, the best time tracking and invoicing software for your work will comply with legal standards, have tracking options for billable and non-billable hours, and give you a simple process for creating detailed invoices. Read on to learn more about how legal time tracking software works and why software like Bill4Time is one you should consider.

What Is the Best Way to Track Billable Hours

What Is the Best Way to Track Billable Hours?

Modern time tracking software is the best option, especially for any industry tracking billable hours. For law firms specifically, tracking billable hours ensures fee transparency for clients and gives firms a clear picture of what their legal services cost. 

Time trackers also help attorneys be more effective with their time as they shift their focus between tasks. Legal work typically requires flexible but meticulous work habits, as attorneys will often need to work on multiple cases in the same day, not to mention that much of their work is out of the office or on the go.

While spreadsheets and notepads used to be common ways to keep track of billable hours, most have migrated to legal-specific software — and for multiple reasons. The billing lifecycle can be complex and quickly gets tough to organize, as clients will have different rates, fee arrangements, and so on. Additionally, manual methods lack built-in safeguards, like ways to see unbilled hours or automatic calculations, which can result in missed revenue or inaccurate invoices.

Time tracking software addresses all of these pain points. The best software gives your firm better ways to organize finances and track time no matter where you are.

How Do I Create an Invoice With Tracked Time?

Generating a detailed invoice is simple if you use time tracking software. Quality software will also allow you to customize invoices with company details — such as logos, payment terms, late fees, and so on. Software like Bill4Time not only provides time tracking but can pull from its records to generate customizable invoices in a few clicks.

Here’s a brief guide to how you would generate a client’s invoice in Bill4Time:

  1. Select the Billing Period: Choose the start and end dates for the time period you want to invoice.
  2. Review Tracked Entries: Review your tracked time entries, organized by project or client, and select the ones you want to include.
  3. Customize Invoice Details: Easily add discounts, taxes, payment terms, or specific notes tailored to each client.
  4. Preview and Verify: Check the invoice for accuracy, ensuring all details are correct and totals are complete.
  5. Send to the Client: Email the invoice, generate a PDF, or make it available through the Bill4Time attorney-client portal.
  6. Do Batch Invoicing: For larger firms, batch invoicing lets you create and send multiple invoices at once, saving time and eliminating repetitive tasks.

Using time tracking software for invoice generation is, in every way, a step up from paper spreadsheets and even Excel-style digital spreadsheets. With a single source of truth for time tracking and invoicing, you eliminate many potential errors from transferring data and greatly simplify the operations process of accounting, billing, and invoicing for your firm.

How Do I Create an Invoice With Tracked Time

Is There a Free App to Track Working Hours?

There are free options for time tracking, but if your industry has strict guidelines or requires detailed reporting, you likely won’t get the function you need from a free time tracking app. For freelancers especially, it’s critical to have software that makes financial processes both safer and simpler for you. 

And if you’re a solo or small firm lawyer, quality software is vital to your success. So while you could just get a free downloadable tool (like the billable hours tracker for Excel), it’s not going to perform in the ways you need.

Free software might sound like a good way to save money — particularly if you’re just starting out. But there are several reasons why you should steer away from free options: 

  • Less Organization Tools: One of the big benefits of quality software is how well it can organize your business — not just individual files and folders, but helping you keep track of your hours worked. Free software will have much fewer capabilities, and even if you have other software as support, free software may not pair well with other software.
  • Lack of Advanced Reporting: Free time tracking apps often provide basic features but rarely offer robust reporting tools tailored to legal professional needs.
  • Little Customer Support (If Any): Software is at its best when the user knows it well, and much of that comes from customer education. Unfortunately, most free software doesn’t have educational resources and also lacks any form of live customer support.
  • Potential Cybersecurity Risks: The ethical obligation under the American Bar Association Rule 1.6 to protect client confidentiality extends to the security of the tools you use for time tracking and billing. There is no shortcut to security and safety, and that comes with a price… but that cost is much smaller than the cost of a cybersecurity breach, which is only getting more common and expensive.

Which Is the Best Software to Track Billable Hours?

Time tracking software is the best way to manage billable hours, especially if you’re a small to midsize firm. Using software makes the process of time tracking far more flexible, and software like Bill4Time makes it easier (and more secure) to turn timekeeping records into invoices.

The practice of law is already demanding enough on its own; why not make your operations side as easy as possible? Creating that convenience is what we pride ourselves on at Bill4Time. If you’re ready to see what time tracking software can do or simply want to learn more, visit our website for a free trial or click the button below to schedule a free demo!

Get a Custom Bill4Time Demo

Filed Under: Blog Tagged With: time tracking

11 Gifts for Lawyers to Increase Productivity

December 9, 2024 By Nina Lee Leave a Comment

Whether you’re shopping for a colleague at your law firm or looking for your lawyer friend or family member, we’ve got you covered. Lawyers will love gifts that are practical and can actually enhance their day-to-day life. Here are 11 gifts for lawyers to increase productivity that won’t collect dust on their desks.

1. Noise-Canceling Headphones

Lawyers often struggle with time management, which can be far worse when the firm is busy and distracting. Noise-canceling headphones shut out the distractions to provide excellent concentration. Headphones don’t restrict all sound, but they reduce and control loud discussions 

2. Meal-Prep Service

Mealtime could be even easier with a ready-to-go meal-prep service. For a lawyer who likes to cook but doesn’t have time to plan recipes or shop strategically, a subscription to a meal service is the ideal solution. Services like Green Chef, HelloFresh, and Blue Apron offer top-notch recipes with pre-portioned ingredients and step-by-step instructions. Some meal services also offer meal selection or specialty recipe plans, such as clean eating, plant-based, or paleo. Meals are delivered in insulated boxes, so the lawyer doesn’t need to be home to receive them. Preparing quality meals has never been easier!

3. Personalized Yoga Mat

Part of productivity is maintaining a healthy work/life balance to prevent burnout. Lawyers can get busy and neglect their hobbies, including yoga or other fitness habits. A personalized yoga mat is a great gift to help a lawyer remember to stay healthy and focused, no matter what the day brings. Yoga mats are also portable, so they can be used in the office, in a hotel at a conference, or at home.

4. Voice-Controlled Devices

Voice-controlled devices, such as the Echo Dot from Amazon, make a huge difference in productivity. Lawyers can simply say commands to make calls, send texts, or perform other small tasks. These devices are also streamlined and fit into modern office décor.

5. Paper Shredder

A paper shredder may not sound like the most exciting gift, but it’s a huge help for any lawyer. These professionals often have to dispose of sensitive documents, so they can’t be thrown in the recycling bin. These documents need to be shredded, and a high-quality crosscut shredder makes the job quick and easy.

6. Digital Course

Lawyers spend a lot of time on their education, but the good ones never stop learning. With the availability of digital courses, certificate programs, and webinars, lawyers can continue to enhance their skill set in areas like computer science, business communication, trends in international law, productivity, and more. Platforms like Udemy and Coursera offer virtually endless possibilities, making this an excellent gift for the forever learner.

7. Legal Technology Guides

Legal technology solutions are sweeping the legal industry and helping lawyers streamline their practices. One of the top-selling books on this topic is A Short & Happy Guide to Advanced Legal Research by Ann Walsh Long, which covers the how-to of legal research and the legal technology solutions on the market. This is the perfect gift for lawyers looking to modernize their practices.

8. Personalized Leather Journal Notebook

Lawyers always need to take notes, even if they have legal technology software. Note-taking comes naturally, and lawyers tend to track time or make notes of thoughts as they come up throughout the day. A personalized leather journal notebook has a professional look and adds to the look of the office while serving a practical purpose. That’s definitely an upgrade from post-it notes or a spiral-ring notebook!

9. Unique Thumb Drives

Lawyers need a lot of thumb drives, but who wants a bunch of boring black thumb drives lying around? Thumb drives come in a variety of character and pop culture styles, such as Harry Potter, Star Wars, Marvel superheroes, DC superheroes, and other pop culture icons. The rest of the office can be rich mahogany and leather, so incorporating gifts for lawyers that are fun can bring some lightness into the mix.

10. A Wine Subscription

Sometimes, productivity means knowing how to take some “me” time. Wine.com offers an annual membership with wine and other spirits delivered right to the door. Lawyers that enjoy fine wine and spirits will love sampling new wines and trying out new cocktail recipes. The website also offers a lot of resources, such as wine tasting sets, wine and spirit guides, and recipe books.

11. Espresso Machine

Most lawyers love their coffee, so a coffee-related gift is a surefire hit. Espresso machines not only benefit the lawyer but create an outstanding experience for their clients and colleagues visiting the firm. Espresso machines run the gamut from inexpensive to the price of a car, but you can find quality machines with tons of bells and whistles to create delicious brews. You can also throw in a basket of espresso grounds, flavor syrups, and barista tools.  

These Gifts for Lawyers Productivity Will Speak Volumes

Lawyers work hard, so they appreciate a gesture of thought and kindness during the holiday season. The diverse gifts on this list range from low-cost and fun to thoughtful and practical, so there’s something for every lawyer.

Filed Under: Blog

Attorney Time Tracking Template Best Practices

December 4, 2024 By Allison Lemasters Leave a Comment

In the legal profession, your time is one of your most important assets. Every moment spent researching case law, drafting documents, or advising clients contributes directly to your firm’s success.

Keeping track of those moments, however, is often easier said than done. Time tracking frequently gets pushed aside, relegated to quick notes at the end of a long day or overlooked entirely during a busy week. Without consistent and accurate time tracking, billable hours—and, by extension, your revenue—can slip through your fingers.

Many attorneys rely on free timesheet templates in Word, Excel, or Google Docs, but these tools often fall short when applied to the nuanced workflows of a law firm. Others use paper systems that are even more prone to error. If you’ve been asking how to track time as a lawyer, the reality is that modern legal time tracking software offers a more reliable solution.

This guide gets into every aspect of attorney time tracking templates, exploring their uses, limitations, and how they stack up against specialized time tracking software. If your current time tracking method feels outdated, you’ll find practical advice here for improving accuracy, saving time, and increasing revenue. We’ll cover the following below:

  • The importance of time tracking
  • Methods of time tracking and using templates
  • What should go on a billable hours spreadsheet template
  • Attorney time tracking template examples in Word, Excel, and Google Docs
  • How to use time tracking software

First, Why Is Time Tracking Important for Lawyers?

Tracking time helps lawyers turn their daily work into revenue while maintaining transparency, efficiency, and accountability. From managing client relationships to maintaining professional standards, effective time tracking has benefits that go beyond simple billing, such as:

Bringing Visibility to Your Work

Every phone call, email, and hour spent preparing for a case holds value. Without clear documentation, much of that effort can go unnoticed or unbilled. Time tracking helps you capture the complete picture of your work, making sure no effort is overlooked. It also provides a way to connect the hours you invested with the outcomes you delivered.

Protecting Your Reputation and Staying Transparent

Incomplete or sloppy time records can lead to client concerns—or worse, claims of overbilling. For a profession built on trust, accurate time tracking provides the transparency your clients expect. It also protects your reputation by demonstrating adherence to professional standards.

Discovering Where Time Is Wasted

Time tracking is a chance to see where inefficiencies exist. Maybe you spend too many hours on tasks that don’t require your legal expertise, or administrative work is eating into valuable client-facing time. Identifying these patterns can help you reclaim hours that could be put to better use.

Building Stronger Client Relationships

Clients often have little visibility into what their attorney is doing behind the scenes. Detailed time records can change that. When clients see how their case is progressing and where you’re spending your time to achieve their goals, it fosters confidence and strengthens the relationship. And if that client has friends or family that need an attorney, chances are they’ll likely recommend you.

Despite its clear advantages, time tracking is often treated as an afterthought. Many lawyers delay time tracking, leading to significant losses in billable hours—up to 15% by day’s end, 25% by the next day, and 50% by week’s end. If law firms want to improve their operations and deliver exceptional service, they need to rethink how they approach timekeeping. Better methods lead to more accurate billing, stronger ethics, and smarter growth strategies.

How Do Lawyers Track Their Hours?

Lawyers typically use one of three methods to log billable hours: manual tracking, templates, or specialized software. Each option offers different levels of accuracy and convenience, with templates often acting as a middle ground between old-school methods and modern tools.

1. Manual Timekeeping

Many attorneys still use notebooks or scraps of paper to jot down their hours, often filling in the details after the fact. While this low-tech method requires no fancy tools, it’s full of challenges. You can forget tasks, lack details in your descriptions, and easily leave billable time out completely. Beyond that, manual tracking can create inconsistencies across a firm, making it harder to stay organized and run smooth billing processes. For many lawyers, this approach ends up costing time—and money.

2. Template-Based Tracking

For those seeking more organization, an attorney timesheet template in Word or Excel offers a structured alternative. Templates should include pre-formatted fields for key details such as date, client name, task description, and time spent (you can find some examples in later sections of this blog). A lawyer timesheet template in Excel, for instance, might even include basic formulas to calculate totals.

However, templates come with limitations. They still require manual effort to input and manage data, leaving room for human error. Additionally, templates lack scalability and customization, often making them ill-suited for firms with multiple timekeepers or complex billing needs. Even an attorney timesheet template that’s free to use can feel cumbersome as workloads grow, highlighting the need for a more efficient system.

3. Time Tracking Software

For attorneys seeking both precision and convenience, legal time tracking software like Bill4Time bridges the gap. Unlike templates, legal software automates critical functions such as real-time tracking, task categorization, and invoicing. It also eliminates common pain points, like forgotten entries or inconsistent formats, by providing a unified platform tailored to legal workflows.

Features such as built-in UTBMS codes and detailed reporting capabilities make software the most comprehensive solution. While templates may suffice for solo practitioners or those starting out, software becomes essential as firms grow and face more complex demands.

Templates often appeal to attorneys who want an inexpensive option, but they tend to reveal their shortcomings quickly. When evaluating time tracking methods, it’s important to assess not just the upfront cost but also the long-term impact on accuracy, productivity, and client trust. Attorney time tracking templates offer a stepping stone, but many firms find that modern platforms like Bill4Time ultimately provide the consistency and efficiency they need.

For those considering free templates, let’s explore how these options compare and how they might work out for your firm.

What Is a Billable Hours Spreadsheet for Lawyers?

A billable hours spreadsheet or template provides a structured way for lawyers to log their work and manage billable time. Typically designed in Excel, these templates allow attorneys to track tasks and hours with predefined categories. They serve as an accessible starting point for organizing timekeeping, especially for solo practitioners or smaller firms. A standard template might include:

  • Date: Capturing when the work occurred.
  • Client Name/Matter: Clearly associating time entries with the relevant case or client.
  • Task Description: Summarizing the activity performed, such as drafting, court appearances, research, client meetings, etc.
  • Time Spent: Logging hours in standard increments like six or fifteen minutes to align with industry norms.
  • Rate/Total: Fields to calculate fees based on your hourly rate.

While these templates aim to bring order to time tracking, they often fall short of meeting the complex needs of a law firm. Unlike more advanced time tracking systems, a billable hours spreadsheet doesn’t account for interruptions, non-billable tasks, or UTBMS codes. These limitations make templates a stopgap solution, suitable for basic time tracking but insufficient for the detailed invoicing and compliance standards most firms require.

For attorneys exploring time tracking solutions, templates can be helpful for basic organization, but their static format and lack of automation often create inefficiencies. They highlight the need for a more adaptable and scalable system, especially as firms grow or handle increasingly complex billing requirements. An attorney time tracking template should ideally integrate into a broader system that streamlines processes, minimizes errors, and supports compliance.

If you’re looking for an attorney timesheet template, you may be tempted to download one of the many free options online. Let’s evaluate the strengths and weaknesses of these templates before comparing them to more modern solutions.

Does Word Have a Timesheet Template for Law Firms?

Word doesn’t seem to offer a time tracking template specifically for law firms, although you can find a few subpar examples online. For example, consider this one made in Word:

free attorney billing timesheet templates PDF

The immediate problems with this template may not be evident right away, but ask yourself this:

  • How do you know what the attorney’s hourly rate is?
  • How should timekeepers with different rates working on the same case handle their calculations?
  • How can you tell what the billing time increment is?
  • How should UTBMS codes be applied to specific tasks or line items?
  • How can an attorney accurately log time when a task is interrupted multiple times?
  • How do you differentiate between services, expenses, travel, etc.?
  • How do you calculate legal billable hours?

This template doesn’t address many of the challenges attorneys face, yet it’s been downloaded tens of thousands of times. Users have even pointed out that it doesn’t include basic Excel calculations, leaving them to manually total their billable hours.

Excel spreadsheet calculations

We understand the frustration, Linda. With everything attorneys have on their plates, manually calculating hours shouldn’t be part of the process. Unfortunately, even free Excel timesheet templates often fall short. Let’s explore why.

How Do I Create a Time Tracking Sheet in Excel?

If you’re set on building your own tracking system, “How do I create a simple timesheet in Excel?” is a common question. Consider this example that the Washington State Bar Association provides as a solution to people asking, “How do I create a monthly timesheet in Excel?”

This isn’t a bad start, but again, issues will likely start coming up as you use it, like:

  • It requires manual input, leaving room for errors and inconsistencies.
  • It doesn’t integrate with any billing systems, so invoices have to be created separately, and there’s no easy way to pull all the time for one client or matter.
  • Users must manually transfer recorded hours to an invoicing platform, increasing the risk of lost data or missed entries.
  • There’s no way to automatically capture time in real-time, making it easy to forget tasks.
  • Interruptions aren’t accounted for, so fragmented work is difficult to track.
  • You can’t easily pull reports or analytics to understand productivity or profitability.

For those with more complex needs, Excel’s versatility can be a double-edged sword. While you can tailor templates to fit your firm’s workflows, the process often requires advanced knowledge of formulas and formatting. And even then, creating an invoice from the template becomes a headache on its own.

So, what about Google Docs? Is there a better solution there? Let’s take a look.

Is There a Billable Hours Template in Google Docs?

Google Docs is another popular tool for free templates. A billable hours template in Google Docs mimics the functionality of Word with slightly easier collaboration features. While convenient, it suffers from the same limitations:

  • No built-in calculations or tracking
  • Lack of fields for legal-specific data like UTBMS codes
  • Potential inconsistencies across user-generated templates

These shortcomings often prompt attorneys to seek more robust solutions tailored to their profession.

How Do Lawyers Record Billable Hours Using Time Tracking Software?

Tracking time with templates or spreadsheets may work for small tasks, but it often leads to missed hours and unnecessary frustration. After exploring the limitations of manual systems, Word, Excel, and Google Docs templates, it becomes clear why many attorneys turn to legal time tracking software, like Bill4Time. Here’s how it works:

1. Log Hours as You Work

Manual methods often lead to legal professionals entering their time at the end of the day—or even later—which will result in forgotten details. Bill4Time eliminates this issue by allowing you to track time in real time. For example, if you’re interrupted by a client call while drafting a motion, you can pause one timer, start another, and pick up where you left off without missing a moment.

2. Make Billing Easier

Manual billing is tedious and leaves too much room for mistakes. With Bill4Time, recorded hours flow directly into automatically generated invoices, complete with task-specific rates for partners, associates, or paralegals. You can skip the hours of recalculating totals and instead generate detailed invoices with just a few clicks. 

3. Use Customizable Categories

Unlike most templates you’ll find on the internet, Bill4Time is built with legal workflows in mind. Attorneys can categorize their time entries by specific tasks, such as drafting, client meetings, or court appearances, and even use UTBMS codes for clients who require detailed, task-based billing. 

Additionally, these detailed categorizations make pulling reports significantly easier and more meaningful. Firms can analyze time spent by task type, client, or matter to identify inefficiencies, optimize workflows, and evaluate profitability.

4. Track Billable and Non-billable Hours

Attorneys don’t spend all their time on billable tasks—administrative work, team meetings, and training also take up hours. Bill4Time makes it simple to log both billable and non-billable time. Insight like this can help you identify inefficiencies, like excessive time spent on admin tasks, and make smarter decisions about delegating or reorganizing workloads.

5. Access from Anywhere

While templates can be stored on a cloud drive, their usability on mobile devices leaves much to be desired. Adjusting columns, scrolling through rows, and entering data on a small screen can be cumbersome and error-prone—especially for attorneys working in fast-paced environments.

Bill4Time, on the other hand, is cloud-based and optimized for desktop and mobile use, offering a seamless experience across devices. After a client meeting at the courthouse, you can easily log your time using the Bill4Time mobile app without struggling with clunky formatting or awkward data entry.

6. Pull Automatic Audit Trails for Transparency

Spreadsheets and templates won’t inherently offer a secure, tamper-proof way to track changes across different users or devices. With Bill4Time, every action—whether it’s creating, editing, or adjusting a time entry—is automatically logged. Having a built-in audit trail helps your firm stay transparent and resolve any client questions by knowing exactly who made changes and when. Plus, all the data is stored in one centralized system, making it far more reliable and accessible than scattered spreadsheets.

7. Track Time and Expenses in One Place

Many templates focus only on time and require attorneys to manage expenses separately. Bill4Time combines both, allowing you to log expenses like travel, lodging, or filing fees alongside your hours.

What Do Lawyers Use to Keep Track of Billable Hours?

For many attorneys, time tracking starts with templates—simple, easy-to-access tools that promise to bring structure to their day. But as we’ve explored, templates often reveal their limitations as workloads grow or billing needs become more complex. They’re a stepping stone, not the end solution.

Today’s legal professionals increasingly turn to software like Bill4Time, which not only offers robust time tracking but is also a full legal practice management solution (LPMS). Having your time tracking integrated directly into your LPMS streamlines every aspect of your firm’s operations, from case management and client communications to billing and reporting. With all your tools connected in one platform, there’s no need to juggle separate systems or risk errors from manual data transfers.

While templates can work as a temporary fix, they don’t grow with your firm’s needs or provide the holistic support of a complete practice management solution. Bill4Time does, combining time tracking with the tools you need to manage your firm effectively and profitably. Whether you’re working from the courthouse, the office, or home, Bill4Time makes tracking your hours—and managing your practice—effortless.

If you’re ready to experience a more efficient way to manage your time and billing, try a free trial of Bill4Time or click the button below to schedule your personalized walkthrough today.

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Filed Under: Time Management Tagged With: time tracking

3 Year-End Tips to Get Ahead on Law Firm Taxes

December 4, 2024 By Dan Bowman Leave a Comment

end-of-year-taxes

The end of the year is always a busy time for law firms. Wrapping up cases, closing out finances, and planning for the new year can leave even the most organized teams feeling stretched thin. Among all the chaos, tax-related tasks often get pushed aside — sometimes until it’s too late to handle them effectively.

To avoid last-minute stress or unnecessary complications, it’s important to get ahead of these responsibilities. Here are three tax tips every law firm should prioritize before 2025.

Tip #1: Don’t Wait to Compile and Organize All Financial Documents

Keeping thorough and accurate records is a vital step for preparing taxes, and compiling them all together can be a time-consuming process. While the specifics depend on your firm’s structure and the work you’ve done this year, here are some common items to include:

  • Income Records: Detailed records of all income sources, including client invoices, retainer fees, and any other revenue streams.
  • Expense Documentation: Receipts and invoices for all business-related expenses, such as office supplies, travel, professional development, and client entertainment.
  • Payroll Information: Comprehensive payroll records, including salaries, bonuses, benefits, and tax withholdings for all employees.
  • Contractor Payments: Forms 1099-NEC for payments made to independent contractors exceeding $600.
  • Bank Statements: Monthly statements for all business accounts, including operating, savings, and trust accounts.
  • Trust Account Records: Detailed records of client trust accounts, ensuring compliance with state bar regulations.
  • Asset Information: Documentation of business assets, including purchase dates, costs, and depreciation schedules.
  • Loan Documents: Agreements and payment records for business loans or lines of credit.
  • Tax Filings: Copies of previous years’ tax returns and any correspondence with tax authorities.
  • Legal Documents: Records of any legal proceedings, settlements, or judgments involving the firm as a party.
  • Insurance Policies: Details of business insurance coverage, including premiums paid.
  • Retirement Plan Contributions: Records of contributions to employee retirement plans, such as 401(k) or SEP IRA accounts.
  • Mileage Logs: If applicable, detailed logs of business-related vehicle use.
  • Home Office Expenses: For attorneys claiming a home office deduction, records of expenses related to the portion of the home used exclusively for business.

For firms managing trust accounts, review these records carefully to confirm they’re accurate and in compliance with state bar regulations. Staying organized now means fewer surprises when your accountant starts preparing your return.

Tip #2: Settle Outstanding Invoices and Payables

Year-end taxes obviously involve what you’ve earned, but they’re also impacted by what’s owed to you and what you owe to others. Addressing both accounts receivable and accounts payable is important to wrapping up your firm’s financials responsibly.

Accounts Receivable

Reach out to clients with outstanding balances and aim to collect overdue payments before December 31. Not sure where to start? Prioritize clients with larger balances or those approaching 90 days past due. A simple email reminder or phone call often goes a long way. Make sure your invoices clearly outline the amount due and any applicable deadlines.

To make this process smoother, consider using software that automates payment reminders and offers clients easy online payment options. For example, the legal practice management software Bill4Time provides features that allow law firms to send automated invoice reminders and accept online payments, which can lead to faster collections.

Accounts Payable

If your firm operates on a cash basis for tax purposes, paying outstanding bills by the end of the year may help reduce your taxable income. Consider pre-paying recurring expenses like rent, utilities, or professional dues. Additionally, review whether you’ve accrued expenses that should be recorded, even if they haven’t been paid yet.

When you balance what’s coming in and what’s going out, you’ll have a clearer understanding of your firm’s financial health and position yourself to make smart tax decisions.

Tip #3: Meet with Your Accountant to Plan Strategically

An accountant is an essential partner in making sound financial decisions. Schedule a year-end consultation to discuss your firm’s finances, and go into the meeting prepared with detailed records and clear goals. Some questions you can ask your accountant include:

  • Can we maximize deductions for 2024? Are there expenses we’ve overlooked or new deductions we qualify for?
  • Should we make any major financial moves before December 31, like contributing to a retirement plan or purchasing office equipment?
  • Are we on track with estimated tax payments?
  • How will changes in tax laws impact our firm’s obligations for 2024 or 2025?

Preparing your documentation ahead of time allows your accountant to provide meaningful advice and reduces the risk of delays. Scheduling this meeting in early December or even November — before accountants get swamped with last-minute requests — can make the entire process less stressful.

Start Preparing Now for a Stress-Free Tax Season

Taking early steps to organize your firm’s financial records can make a big difference when tax season arrives. Sorting through paperwork, addressing unresolved financial matters, and working with your accountant ahead of time gives you a clearer view of what needs attention.

An organized approach is easier when you have tools designed to simplify the process. Legal practice management software like Bill4Time can help you stay on top of your firm’s financial data all year. By combining features like time tracking, billing, and case management in one system, it keeps everything accessible and accurate. When it’s time to prepare taxes, generating detailed reports and sharing them with your accountant becomes far less complicated.

Check it out for yourself! Click below to start a 7-day free trial.

Try Bill4Time for free.

Filed Under: Accounting, Blog, Legal

How Bill4Time Payments Can Boost Client Retention

November 25, 2024 By Taylor Dahlem Leave a Comment

Client retention is just as crucial as expanding the client base for your law firm, and tactics to improve retention should be part of your overall client acquisition strategy. Effective client retention strategies include maintaining consistent engagement through various channels such as emails, texts, and promotional newsletters. However, there is one particularly effective approach to connecting with clients and retaining them that is often overlooked — ePayments.

Bill4Time’s built-in payment processing feature, Bill4Time Payments is an ePayments solution that simplifies the client payment process, ensuring that law firms get paid faster while improving the client payment experience. In this blog, we will delve into the details of how law firms can leverage Bill4Time Payments to provide excellent client service, build trust and loyalty, and retain clients over the long term.

Boost Your Client Retention Rate by Offering Multiple Ways to Pay Your Firm 

In today’s technologically advanced market, it’s undeniable that clients are searching for efficient and user-friendly legal services. To offer clients the utmost convenience, law firms should provide a range of payment options that cater to their preferences. With Bill4Time Payments, clients can pay using credit cards or directly from their bank account via ACH or eCheck, enabling them to choose the payment method that best suits them. 

Bill4Time Payments also offers the lowest transaction fees in the legal industry, ensuring that law firms are not accumulating excessive transaction fees from online payments and allowing them to keep more of their hard-earned revenue. With this quick and easy payment solution, clients can enjoy an enhanced client experience and pay in just a few clicks while law firms don’t have to be burdened by high transaction fees.

Retain Clients Through Customizable Payment Plans 

Legal services can often be costly, which can make it challenging for clients to cover the costs upfront. Bill4Time Payments allows law firms to create customizable payment plans for their clients, allowing clients to pay in smaller increments over a given period. During consultations, attorneys and clients can agree on the amount and duration of the payment plan, giving clients the freedom to choose a payment method and plan that best suits their financial situation. 

Offering flexible payment schedules demonstrates that you value and respect your clients, and seek ways to ease some of their financial burdens. Payment plans also ensure that your law firm receives payments at predetermined times while eliminating the need for awkward follow-up conversations on late payments. This approach also establishes trust, fosters loyalty, and helps law firms grow their client retention rate. 

Retain Clients By Giving Them A Sense of Security 

When it comes to payments, clients may worry about the possibility of their bank account and other payment information leaking to malicious third-party entities. At Bill4Time, the protection of user data is a top priority.

To ensure the highest level of security, Bill4Time has partnered with trusted third-party leaders in data security, meeting or exceeding world-class information security standards. All user data, including Bill4Time Payments, is safeguarded with 256-bit SSL encryption and SOC 1 compliance. In addition, Bill4Time Payments is fully compliant with IOLTA, ABA, and state bar guidelines for accepting ePayments, meaning that trust funds are protected from commingling from the moment the client initiates a payment until it’s deposited into the firm’s trust account. By adhering to such stringent regulations, Bill4Time Payments ensures the utmost security and compliance for clients’ finances, while providing law firms with the peace of mind that their data is protected and confidential. 

In situations where clients raise concerns regarding the security of their bank information, law firms can readily reassure them of Bill4Time Payment’s security protocols. Such reassurance will foster trust and confidence in your law firm’s ability to manage their financial information.

Boost Client Retention Rate with One Simple Feature — Bill4Time Payments

Boosting client retention rates requires multiple strategies, such as engagement and nurturing. However, Bill4Time Payments is a simple and effective solution that can help you retain your clients through ePayments. With Bill4Time Payment’s security protocol, a range of payment methods, and customizable payment plans, you can offer your clients exceptional legal services while fostering client trust, and ultimately increasing client retention. 

If you’re interested in learning more about Bill4Time’s features or Bill4Time Payments, start your free trial today and experience it for yourself! Discover how Bill4Time Payments can streamline the client payment process and help you build long-term client relationships.

Filed Under: Blog

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