If take a look at your Bill4Time invoice templates, you’ll notice some new features at the bottom of the window. These add-ons consolidate the extra information that is usually attached to the invoice.
Search Results for: trust accounting
Law Firm Credit Card Processing: 3 Common Objections
The ABA approved credit card processing for legal fees in 1974. However, law firm credit card processing has been slowly adopted. Only 62% of large and midsized firms use online payments consistently — even with well-established methods like ACH, eChecks, and credit card processing.
The Impact Credit Card Processing Has on Law Firms
The lack of online payments has a significant impact on lead generation, revenue, and profitability. A compelling value proposition or winning proposal won’t mean much if you can’t accept payment using the methods your clients want to use. If clients aren’t willing to spend money with your law firm, you obviously won’t receive the revenue you deserve, which means profits will continue to be sluggish.
According to a recent study by TSYS, 77% of consumers prefer card payments over cash, check, or wire transfer. Of that, 44% preferred using their debit cards, while 33% preferred using their credit cards.
Why Are Law Firms Slow To Accept Online Payments?
When it comes to online payments, many attorneys and law firms have hidden objections. These objections need to be addressed before attorneys feel comfortable accepting online payments. Let’s take a look at a few of these objections.
Objection #1: Credit card processing is too expensive.
According to Finextra, the cost of traditional billing, via paper invoices and snail mail, is around 9.5% of the amount collected on your invoice. Firms are so used to paying the expenses that come with conventional billing that they’re typically not aware of the amount they’re losing unnecessarily.
For example, if your invoice is $4,520.00, are you okay with giving away $429.40? If you send 25 invoices out to clients each month, that’s $10,735 or $128,820 annually that’s lost unnecessarily.
Direct costs involved in paper-based billing include:
- Invoice and file preparation
- Envelopes
- Offering basic or alternative fee arrangements (debit, credit, retainer, fixed fee, etc.)
- Paper invoices/bills
- Printing (e.g., ink, toner, networking, security, maintenance)
- Postage/franking
Indirect costs are either fixed or costs that can’t be directly attributed to billing costs. Indirect costs include:
- Accounting and reconciliation requirements
- Bill query management and response times
- Customer service workforce to address calls
- Dealing with lost invoices
- Locating and submitting undistributed bills
- Bill storage costs (space rental and fixed costs)
Hidden costs are the expenses no one is looking for or controlling; these costs include:
- Hidden or unexpected payment transaction fees (e.g., annual, PCI, statement, batch, or termination fees)
- Timekeeping, billing, invoicing, and payment processing errors
- Increased float/overdraft protection requirements
- Longer sales cycles and the loss of potential cash-flow acceleration
- Lost/higher cost digital marketing opportunities
- Loss of “green” benefits/credits
It’s important to choose a payment processor that saves you money. Bill4Time Payments, for example, offers industry-low fees with a 2.9% fee for all cards, zero hidden fees and chargeback assistance.
Objection #2: Online payments will be complicated.
If you’re setting online payments up for the first time, you’ll need to go through a certain amount of transitional pain to get things up and running. However, two reasons explain why this objection doesn’t bear much weight.
- The work is front-loaded. Once things are set up, the effort that’s required to maintain your online payment solution is managed by your provider. You provide them with the information needed to get started, but once you’re set, it’s mostly automated.
- Integrated payment processing. Most of the set up is done for you with practice management solutions like Bill4Time. You’re able to simply monitor the flow of cash into your accounts as clients self-manage and provide you with the payments you need.
Objections #3: I can’t maintain IOLTA compliance if I accept credit cards.
According to ABA Rule 1.15, you’ll need to ensure you deposit client funds in the appropriate trust account. How do you accomplish that with credit cards?
“(a) A lawyer shall hold property of clients or third persons that is in a lawyer’s possession in connection with a representation separate from the lawyer’s own property. Funds shall be kept in a separate account maintained in the state where the lawyer’s office is situated, or elsewhere with the consent of the client or third person. Other property shall be identified as such and appropriately safeguarded. Complete records of such account funds and other property shall be kept by the lawyer and shall be preserved for a period of [five years] after termination of the representation.”
To address this, legal practice management software like Bill4Time offers a solution that streamlines online payments while ensuring compliance with IOLTA guidelines. By integrating credit card processing directly within the software, it eliminates the need for third-party processors and ensures that client funds are directly deposited into the correct trust accounts, maintaining clear separation from the lawyer’s own funds.
This simplifies the payment process and provides peace of mind that compliance with IOLTA regulations is maintained. Discover how this all-in-one payment solution can support your firm by watching the video below.
Outlook on Law Firm Credit Card Processing
The legal industry has been slow to adopt online payments, lagging behind other industries, niches, and service providers. At first glance, this doesn’t seem like a serious issue for law firms until you realize that not using online payments is a source of revenue leakage.
Utilizing a built-in payment processor like, Bill4Time Payments, is a great way for businesses to offer ePayments that are compliant and allow them to collect more on the dollar. Bill4Time Payments is ready in Bill4Time user accounts and easy to activate. Streamlining your payments and getting paid faster has never been easier!
Try Bill4Time for FREE
What Software Do Lawyers Use to Track Time?
Many lawyers rely on legal time tracking software to manage their time tracking and billing effectively. This digital solution is the first choice for tracking casework hours and simplifying client billing.
Tailored to meet the unique demands of the legal profession, such software ranges from simple legal billing software to comprehensive, subscription-based systems. However, not all of these solutions are created equal. This article will explore the advantages of such software and how pinpointing the right fit can significantly affect a law firm’s success.
What Is Legal Billing Software and How Does It Track Time?
Legal billing software is a specialized tool designed to help law firms and legal professionals manage their billing processes efficiently. Its key function is tracking time spent on casework, which is essential for accurate client invoicing and productivity tracking.
How does it log billable hours, exactly? Lawyers can start a digital timer when they begin a task and stop it once finished, ensuring precise recording down to the minute. Alternatively, they can enter the duration of activities manually. These systems often feature categorization options, allocating time to specific clients, cases, or tasks, streamlining the invoicing process.
Why Is Lawyer Time Tracking Software So Crucial?
Lawyer time tracking is important for your law firm for several reasons:
- Precision in Billing: This software ensures that you’re tracking your time accurately for client billing and your own time management. Inaccuracy in billing can result in either overbilling your client or getting paid less for your time.
- Increased Revenue: When you capture all your billable hours, you can maximize your law firm revenue potential. Unbilled or underreported hours can add up, significantly impacting your firm’s bottom line.
- Enhanced Credibility With Clients: Transparent and detailed time tracking fosters credibility with clients. It demonstrates professionalism and accountability, which can lead to stronger client relationships and more referrals.
- Efficiency Through Automation: Time tracking software automation streamlines the billing process, reducing the administrative burden on your lawyers and legal support staff. For example, you can automate your invoice approval process to speed up the billing cycle.
- Accountability and Promotion of Productivity: Time tracking promotes accountability within a law firm. It encourages lawyers to stay focused and productive during their working hours, improving efficiency and, by extension, increasing billable hours.
- Reporting and Analysis: Time tracking software with full accounting and reporting features can generate comprehensive reports. These insights show how your firm spends time on different tasks, clients, and matters. Such data can inform strategic decisions like pricing strategies and resource allocation.
- Client Satisfaction With Timely and Fair Billing: Clients appreciate timely and accurate invoices. A prompt bill with clear, detailed time entries enhances client satisfaction with your firm.
What to Look for in Law Firm Time Tracking Software
It’s important to choose the right law firm time tracking software to ensure it meets the needs of your firm and staff. Your choices may range from free lawyer time tracking software to subscription-based versions.
However, although free options may offer basic functionality, they often lack customer support and advanced features that can handle the complexity of legal billing. Such solutions also don’t offer robust security measures, which are non-negotiable when handling sensitive client information. Subscription-based versions, on the other hand, typically provide enhanced security, dedicated support, and a suite of features designed for the nuanced needs of legal professionals.
More specifically, here are some features to look for in your legal time tracking software:
- Intuitive Interface: Your solution should have an intuitive interface with a straightforward design that makes it easy for legal professionals to record their billable hours efficiently. This ease of use will also simplify training new employees on the software.
- Mobile Compatibility: With clients and lawyers increasingly relying on mobile devices, mobile compatibility is a crucial aspect of your timekeeping software. Make sure that your software is accessible via smartphones and tablets to track time on the go. Bill4Time, for example, offers a mobile time tracking application for both Android and iOS devices.
- Task and Activity Codes: Your software should be able to assign task and activity codes, including support for LEDES and ABA expense codes. This feature allows for easy categorization of work and simplifies the billing process, providing valuable insights into how time is spent.
- Multiple Timer Support: Law firms often juggle multiple clients and matters. Your software should support multiple timers so lawyers can track time for different tasks concurrently, such as research, meetings, and consultations.
- Integration Capabilities: Time tracking software should seamlessly integrate with the other tools you use, such as your email, calendars, and accounting software, for a streamlined workflow. Bill4Time, for example, has software integrations with Box, Net Documents, QuickBooks, and more.
- Cloud-Based Access: A cloud-based billing system, such as Bill4Time, ensures data is stored and accessible from anywhere with a secure internet connection. This feature is essential for collaboration, especially with remote teams.
These are all key features to consider to make informed decisions about what software solution best supports your firm’s needs.
Is There an Attorney Time Tracking Template in Excel?
Excel templates are available for time tracking but may not be the ideal choice for your law firm. Here’s why:
- Manual Entry Prone to Human Error: Excel templates for time tracking often require manual data entry. Lawyers typically have busy schedules, and manual input can cause errors or omissions in recording hours that can have financial and legal ramifications.
- Limited Mobility: Excel spreadsheets are not mobile-friendly, so the lack of mobile compatibility can be a drawback for lawyers working on the go. A time tracking app for attorneys is often a key part of accurate, real-time tracking, especially when attorneys are in the field for client meetings or court appearances.
- Lack of Customization: Excel templates are helpful, but they’re generic. You may need customization to address specific legal billing requirements. For example, task and activity codes, client association, and billing rate variations can be challenging to implement consistently across your firm with an Excel template.
- Not Designed for Legal Work: Excel was not designed specifically for the legal industry, so it lacks some targeted features that a legal time tracking software offers, such as client management or built-in billing features.
Can I Track Billable Hours in Quickbooks Online?
QuickBooks is more for general business use and doesn’t include specialized features for tracking billable hours that law firms require. Law firms generally need support for complex billing arrangements, precise trust account management that aligns with stringent bar regulations, and detailed reporting for in-depth practice analysis. Using QuickBooks alone may necessitate additional steps and customizations to meet these specific legal industry requirements.
Instead, look for a dedicated legal time tracking software like Bill4Time, which is engineered to address these law firm complexities with precision. Bill4Time allows firms to capture billable hours while providing comprehensive solutions for task-based billing, maintaining compliance with bar regulations, and offering deep insights into firm operations through advanced reporting.
Ready to experience the difference a solution can make for your firm? Sign up for a free Bill4Time demo or free trial today and see how we can transform your firm’s time tracking and billing processes.
5 Ways to Optimize Remote Work Time Tracking for Lawyers
According to a national survey sponsored by the American Bar Association (ABA), remote work options are becoming a must-have for many lawyers. 44% of surveyed individuals expressed a willingness to quit their current job if offered another with better remote work flexibility. Additionally, most participants prefer conducting pretrial hearings, depositions, and court-ordered mediations through remote means.
However, adapting to remote work setups presents unique obstacles, particularly when it comes to time tracking for lawyers. Unlike the structured office or court environment, working from home can blur the boundaries between professional and personal tasks, making it harder to track billable hours accurately.
To address these issues, consider the five following strategies to promote efficiency and precision in remote-working routines.
1. Choose the Best Remote Employee Time Tracking Software
Time tracking software can make a huge difference with remote and hybrid work in your firm, but it’s not all created equal. Be sure to choose a solution with features that suit your team best, such as automated timers that can track hours. This capability is especially handy for lawyers working from different locations, ensuring accurate billing regardless of their work environment.
Additionally, the software should offer detailed time summaries. These reports are invaluable for identifying areas requiring extra support, helping to maintain consistent productivity levels across remote teams.
Billing and invoicing features are also valuable. Compiling hours and creating invoices can be time consuming, but legal software automatically creates and sends branded invoices. This process ensures your firm produces high quality, dependable invoices no matter where they are working.
2. Use a Work-From-Home Time Tracker App
Contemporaneous timekeeping is crucial to accurate, transparent billing. Too often, lawyers rely on memory and estimate hours after the fact, which can lead to over- or underbilling. According to the ABA, contemporaneous timekeeping is a “weak spot” for many lawyers. On average, lawyers lose 10% to 15% of their potential billable time because they can’t estimate accurately. If they wait until the next day, they lose about 25% of the time. By the end of the week, that adds up to about a 50% loss.
In this context, adopting a time tracker app becomes a strategic decision. When your workday includes remote working or court appearances, these apps are particularly useful. They capture every billable moment in real-time, ensuring that each minute of legal expertise is accounted for and billed accurately. High-quality time tracking software will usually come with a corresponding app, so you can easily log your time from the platform on your desktop or from the app on any device.
3. Develop Remote Work Time Tracking Guidelines
Standardized time tracking guidelines are important in any firm, but they are even more vital for hybrid and remote teams. No employee should wonder “how do I track my remote work hours?” and instead know the exact protocol. A remote work time tracking template is a good place to start, but implementing guidelines within time tracking software will offer the most consistency across your bills.
Overall, having clear time tracking guidelines can:
- Promote Accuracy: Lawyers and staff may have their own differing methods for tracking time, which can cause inaccuracies. With guidelines, everyone is following the same process and the chances of more accurate time entries increases.
- Create Uniform Data: Uniform data is fundamental for accurate reporting to evaluate your firm’s productivity. Standards for timekeeping ensure that your attorneys and staff give you apples-to-apples comparisons for timekeeping.
- Build Standards for New Staff Training: When you have a standard in place for timekeeping, it’s much easier to train new staff and set clear expectations to ensure they know what they’re responsible for at the start.
- Foster Transparency with Clients: When the details of billable hours are vague, your clients may not trust that they’re getting value out of their legal services. Clear timekeeping guidelines provide more detail about how lawyers should be billing.
4. Provide Training on How to Track Employee Hours Working from Home
Training shouldn’t end at new hires. In addition to guidelines, you should train your staff on why accurate timekeeping is important and best practices. Conduct regular training sessions with your staff — like how to manage time in remote work settings or ethical time tracking considerations — to keep everyone on the same page. If your time tracking reports indicate that you need to improve your processes, training sessions offer an opportunity to update your staff on these changes and explain them.
5. Combine Time Tracking with Practice Management Software
Work-from-home tracking software for time is only one factor in law firm productivity. It should integrate within a broader legal case management platform to streamline your remote workflows and improve your firm’s time tracking accuracy. Here’s how:
Offers a Comprehensive Overview of Cases and Time Spent
Data requires context for interpretation. A comprehensive legal practice management platform is particularly beneficial for remote teams, as it provides a comprehensive overview of all staff activities, cases, and the time allocated to both billable and non-billable tasks. With a broad view like this, you can evaluate areas of good productivity and any opportunities for improvement.
Helps with Resource Allocation
Time tracking data can identify over- or under-utilized resources, allowing you to optimize your firm’s efficiency. With this clear view, you can allocate your resources — remote and in-person — more efficiently according to project timelines and available staff.
Assists with Prioritizing Tasks
For law firms operating remotely, clear visibility into outstanding tasks is particularly valuable. It allows you to prioritize critical projects, like urgent cases needing extensive staff involvement, and effectively plan for other tasks. This clarity is vital for remote teams, where physical distance can sometimes lead to communication gaps or coordination challenges. By having a clear understanding of the priority level of each project, you can develop a more effective course of action for managing the remaining workload.
Enhances Collaboration Across Remote Teams
Collaboration can be a challenge across remote teams. Legal practice management platforms improve collaboration by giving all staff members a view of the shared project and their individual responsibilities. Staff can receive updates on relevant tasks and share questions or insights easily through the software’s messaging and chat features.
Is There an App to Track Work-From-Home Hours?
Bill4Time is the best platform for tracking work-from-home hours. With its corresponding mobile app, automated timekeeping and billing, and convenient integrations, this cloud-based legal case management software gives you all the legal-specific features you need to support and optimize your in-office, remote, or hybrid teams. Sign up for a free demo to see Bill4Time in action!
Best Practices for a Law Firm Invoice Template
Law firm invoices are the foundation of communicating the value of legal services and building brand trust — and they all start with a good template. A well-designed invoice template is a major contributor to a law firm’s reputation and cash flow.
And in the wake of stories like the New Jersey lawyer who was suspended for overcharging clients, so-called “aggressive billers,” and a pervasive belief that lawyers overcharge — lawyers need to do all they can to ensure their invoices are trustworthy.
While these lawyers may give the profession a bad name, there are ways to combat this skepticism. An excellent place to start is with your firm’s invoice template. This blog will examine what goes into a law firm template and how you can utilize legal time tracking software to create consistent, high-quality invoices.
To begin, let’s take a look at the process of recording billable hours and sending invoices to get a better idea of what information you should include.
How Do Lawyers Record Billable Hours and Send Invoices?
Lawyers often record billable hours using manual logs or time tracking software. These records are then compiled to create detailed invoices using a template and sent to clients. Each step of this process contributes to the value an invoice demonstrates and how timely the client pays.
Here’s a breakdown of each step:
1. Record Start and Stop Times for Each Task
You can manually note the start and stop times of a task, or you can use a timer to capture your billable tasks in real-time. For example, you can start the timer before drafting an email to a client and stop it immediately once you hit the send button. If it takes you about 17 minutes to draft the email and you bill in 6-minute increments, you would record 0.3 hours of billable time for that client.
2. Detail Each Task
Detailed descriptions on invoices are vital to client trust. Including details fosters transparency and shows the client how you spent the time for their case, like “reviewing discovery responses from the opposing party” or “preparing partnership agreement contract.” If you have vague descriptions like “discovery” or “prepare documents,” the client has more room to doubt what you did with your time. The more doubt a client has about your invoice, the less likely they are to pay it.
3. Categorize Tasks by Case or Client
If you’re working on multiple cases for one client, it’s important to record which case you’re working on. Be sure to include an area for the client and the corresponding matter on your invoice template.
4. Review and Adjust Billable Hours
Always review and adjust your billable hours to ensure they’re accurate for the final invoice. This prevents overcharging clients and leaving your firm’s money on the table. Plus, it’s a matter of professional ethics to have a detailed time recording system.
To ensure consistency, establish a regular review period in your billing cycle. Encourage attorneys to dedicate a few hours every other week or at the end of the month to review the invoices going out that period.
5. Finalize Hours and Send Invoice
To prepare the final invoice, add up all the hours spent and apply the billing rate. You should also tally and include any applicable expenses. Your invoice template should have a separate area for all of these items so the client can clearly see why they owe the amount you are asking for. Consider sending each invoice with a simple attorney invoice letter that details how the invoice works and guides the client through reading it and making a payment.
Can I Create My Own Invoice Template?
It’s possible to create your own invoice template, though it requires careful design and consideration to ensure you have all the necessary legal and billing details. If you want to create your own invoice templates, here’s how:
1. Gather Necessary Information
Your invoice template may vary according to your clients and practice area, but it should always include:
- Your firm’s name, logo, phone number, physical address, and email address.
- The client’s details, which may be the client point of contact or a specific billing contact.
- The date you’re sending the invoice.
- An itemized list of the services you provided.
- The billing rate for each service.
- A subtotal for all services plus expenses.
- The payment due date and late payment consequences.
2. Design the Layout
You can create your own invoice template or use an online invoice template to design your layout. If you’re familiar with Excel, you might wonder, “Does Excel have invoice templates?” While Excel does offer some invoice templates, a legal invoice template that is free typically doesn’t include all the necessary details a law firm needs.
If you want a great example of a law firm invoice template, scroll down to the next section.
3. Add Legal Requirements
Depending on the template you use, you will need to include any additional legal language that needs to be there, such as terms and conditions or compliance statements.
4. Develop a Numbering System
Invoice numbers are one of the most important aspects of invoicing for tax and accounting purposes, tracking payments, organizing your financial documents, and ensuring your law firm looks professional and legitimate. This number should be near the top of the invoice and easy to find.
If you’re not sure where to start, it’s a common practice to begin with 1001 for your first invoice and then increase the number by one each time you issue a new invoice (1002, 1003, and so on). Whatever numbering system you choose, make sure it stays consistent.
5. Include Payment Terms
You should outline your billing process in your representation agreement before you begin working on a client’s case. Every client should know what they can expect to see on invoices, your billing cycle, their payment options, and penalties for late payments. You can also add this information on the invoice template for client reference — it’s usually included near the bottom.
As you can see, creating a law firm invoice template is a lot of work and prone to error if you’re doing it manually. And while a template can help, you will still be responsible for a lot of manual data entry and upfront time investment. Conversely, law firm software can help you generate invoices quickly and easily.
How Do I Create a Legal Invoice with Software?
Time tracking software allows you to generate legal invoices with just a few clicks. For example, Bill4Time includes options for branded invoices with logos and company details, payment terms, late fees, currency, and much more.
Let’s walk through an example of creating a legal invoice with software:
1. Use Software to Track Time
Bill4Time uses real-time timers to keep track of how much time you spend on a task. It also automatically calculates your billable hours based on time spent and your hourly rate. To ensure you don’t miss a single minute of billable time, Bill4Time lets you generate a variety of reports to check multiple data points in your billing cycle.
2. Generate an Invoice
Once you’ve recorded your time and reviewed it for accuracy, you click the “Create Invoice” button and select the billing time period, service items, and expenses.
3. Review the Invoice
An invoice will then generate automatically from your time entries and billing information, with all the billable hours compiled into a detailed, itemized invoice. You can customize the invoice using an array of layouts and branding details — like your logo and colors — to enhance your law firm’s professionalism.
Here’s a law firm invoice example using Bill4Time invoice templates:
4. Finalize the Invoice
When your invoice is complete, you can finalize it by creating a PDF, printing it on letterhead, or emailing it directly to your client with the click of a button. Your clients then have multiple payment options, including paying through the Bill4Time client portal with an eCheck or paying with a credit card.
5. Easily Follow-Up with Automated Reminders
Bill4Time Payments helps you take control of the invoice process to get your firm paid faster. You can automatically send invoice reminders via email to ensure your clients pay their bills promptly, which also reduces your firm’s administrative burden while improving cash flow.
You didn’t go to law school to create invoices from scratch. Legal time tracking software like Bill4Time saves you time, energy, and frustration by streamlining your timekeeping, billing, and invoice generation. Sign up for a demo or free trial to see for yourself!
10 Ways Billing Software Can Increase Your Law Firm Productivity
According to recent law firm productivity statistics, the top-cited challenge for law firms worldwide is operational efficiency. Technology, including legal time tracking software, is one of the best solutions to operational issues, offering capabilities like automated timekeeping and billing that can relieve stressful workloads.
Wondering how legal time tracking software can help your law firm? Here are 10 ways the right software solution can boost productivity and operational efficiency.
1. Improves Law Firm Organization
With multiple clients, cases, and financial records, it’s difficult for law firms to stay organized — especially when firms start to grow. Billing software streamlines all your data to make managing client relationships easier. You can find specific data with comprehensive search functions, set default billing rates, view balances, track deadlines, and more, all from a centralized platform.
2. Saves Time
Lawyers who bill by the hour must balance the time they can charge for with the time they can’t. However, simply tracking billable hours using manual methods like spreadsheets can take up a lot of time — time that can be better spent on casework or activities that support the firm.
Legal time tracking software like Bill4Time ensures you track your billable time quickly and accurately. For example, the enhanced Statements feature can generate detailed and tailored client statements with customization options and multiple delivery methods. This feature provides a superior client experience in a fraction of the time it would take to do the same things manually.
3. Reduces Lawyer Stress Statistics
The legal industry has always been fast-paced, but the rising demands on lawyers have led to an increase in lawyer stress and mental health concerns. According to a study of 12,825 licensed working attorneys, 28% experience symptoms of depression, 19% experience symptoms of anxiety, and 23% experience symptoms of stress.
While challenges with cases or clients and the pressure to achieve contribute to these mental health issues, long hours and chaotic work environments are also factors. Using billing software to become more organized and efficient can improve work-life balance and limit overworking, leading to better overall mental health.
4. Minimizes Disputes and Human Errors
Manual methods of time tracking are time-consuming and prone to error. Lawyers may estimate hours or miss valuable billable time, and there’s no accountability for how they spend their time on cases. These manual practices can leave your law firm vulnerable to disputes that can delay payment or harm your firm’s reputation.
Timekeeping software uses automated timers with advanced features that minimize these errors. You can record multiple entries, run a timer to track the exact time spent on a task, and even automatically convert appointments to billable hours. When you send your invoices to clients, you can send them confidently, knowing they are transparent, detailed, and accurate.
5. Boosts Law Firm Revenue Per Lawyer
Losing billable time to timekeeping errors or omissions and bill write-offs can significantly harm gross profit margin in law firms. What is the profit margin of a law firm on average? For perspective, the University of Pennsylvania’s Penn Carey Law School reports that the profit margin of Am Law 100 firms varied between 35% and 45% from 1986 to 2021. Achieving such profit margins might be challenging for smaller firms, but it’s a worthwhile target.
Billing software safeguards your firm’s profits, even in fluctuating economic conditions, by ensuring precise hour tracking and minimizing lost time. This precision in timekeeping directly contributes to optimizing the revenue generated per lawyer in your firm.
6. Provides Security
ABA Formal Opinion 477R, focusing on the ethical use of virtual tools under the Model Rules of Professional Conduct, underscores the necessity for lawyers to protect client confidentiality in digital spaces. This need includes exercising diligence in handling client data and securely using virtual meeting platforms and videoconferencing tools.
Cloud-based timekeeping software like Bill4Time aligns with these requirements by offering robust data security features. These include user access permissions, multi-factor authentication, and encryption of sensitive data. Additionally, Bill4Time goes through frequent and regular updates, addressing potential vulnerabilities and reducing the risk of cyber threats. For secure client interactions, Bill4Time provides a client portal, accessible through individual credentials, ensuring protected communication and file sharing.
7. Automates Accounting and Payment Reminders
Administrative tasks like accounting and tracking down client payments and outstanding balances waste significant time for your firm. Billing and invoicing features with time tracking software allow you to create detailed invoices, offer flat rates and percentage discounts, set up recurring payments, and more. You can also set up automated reminders about upcoming and past-due invoices to stay on top of your clients’ billing.
8. Establishes Brand Identity
Setting your law firm’s brand apart contributes to long-term recognition and growth. Instead of generic invoices, Bill4Time helps you create professional, branded invoices with your logo, fonts, color schemes, and firm details. You can add these personalized brand touches to your client portal, client invites, and invoice emails, creating a cohesive brand across all platforms and keeping your firm top of mind.
9. Simplifies Reporting
How do you measure success in a law firm? You can’t manage your firm’s profitability and productivity if you don’t know where you stand. Bill4Time offers comprehensive reporting to view the payment history, balances due, collections, firm expenses, and productivity reports to gain full financial visibility. You can also see your firm’s productivity month over month or year over year to see what projects consume the most time. If you want to know how to measure lawyer performance, productivity reports reveal which team members contribute positively to your firm’s revenue and growth.
Some of the reports you can create with Bill4Time include:
- Accounting reports: Accounting reports include information like AR aging, trust, and payments received to understand your outstanding balances.
- Entry and user reports: These reports show monthly billable and nonbillable hours per user, the clients and projects created within a given time frame, and more.
- Summary reports: Summary reports show you broad information or granular details as you choose. For example, you can see all time or expenses within a time frame or group the results by user, client, or project as needed.
10. Supports 24/7 Service
The client experience is a big part of your law firm’s success. The Bill4Time client portal gives your clients 24/7 self-service options to review their invoices and make partial or full payments from anywhere and on any device. This feature improves your client service and reduces the burden on your support staff with billing or invoicing inquiries from clients.
Ready to see what Bill4Time could do for your law firm’s productivity? Sign up for your free Bill4Time demo today!