Internal Time Replacing Travel Time on the Time/Expense Page
[Read more…] about New Features for Internal Time, Flat Fee Projects & Trust Reports
Search Results for: trust accounting
Law Firm Financial Management Tips for Profitability
Organizational chaos is a common theme in industries today, but it doesn’t have to be yours! While there may be hectic work days, there should never be hectic law firm financial management. If your firm’s finances have become unmanageable, client invoices are never sent out, trust funds are not separated, overspending is a norm, or there is no financial plan for your firm, you may find yourself in the hot seat!
Today, a plethora of technology, such as Bill4Time, helps attorneys prevent situations like this. If you did not know these law firm billing software organizations existed, you may want to consider their services to jump-start your firm’s financial livelihood.
In this blog, we’ll discuss the importance of maintaining financial management, what it looks like, and some strategies to get your firm on the right financial track.
What Is Law Firm Financial Management?
Law firm financial management refers to the systematic and strategic handling of a law firm’s financial resources and operations. This crucial discipline ensures your firm’s stability, growth, and overall success.
Managing finances within a law firm is a multifaceted discipline encompassing a spectrum of financial strategies tailored to the unique demands of legal practices. Accordingly, this intricate process involves a trio of elements: budgeting, billing, and financial planning.
- Budgeting in law firms involves planning and allocating financial resources. It encompasses setting financial goals, estimating revenues, and projecting expenses. Budgeting helps your practice establish a clear financial roadmap for a specified period.
- Billing is a critical component, directly impacting revenue generation. It involves accurately recording and invoicing clients for legal services provided.
- Financial planning involves setting long-term financial goals and devising strategies. It includes assessing your firm’s financial health, identifying improvement areas, and planning contingencies.
Why Proper Law Firm Financial Management Is Important
Effective financial management is the bedrock of a thriving law firm. It would be best to recognize that proficient financial stewardship is the compass guiding your firm toward sustained success, safeguarding against potential hazards.
Sound financial management provides stability and growth opportunities. It allows for strategic resource allocation, enhancing your firm’s ability to invest in cutting-edge technology, talent acquisition, and practice area expansion. Proactively approaching your law firm’s financial management bolsters your competitiveness and creates client-centered quality service.
Conversely, neglecting financial management can lead to dangerous pitfalls. The consequences of financial negligence are stark! Without sound management, overspending, client payment issues, and unforeseen expenses can erode profitability. Ethical and regulatory breaches become more likely, tarnishing your firm’s reputation.
Your law firm’s financial management weighs heavily in favor of diligence. Knowing the outcomes enables you to make educated choices about managing your firm’s finances effectively, helps you maintain client trust and reputation, and adhere to ethical and legal standards.
Common Struggles and Errors in Law Firm Budgeting
Effective budgeting is the linchpin of financial stability within law firms, yet many encounter challenges and errors that can impede their financial health. Let’s delve into some of these issues and understand how they can jeopardize a firm’s stability.
- Inadequate Expense Forecasting: Firms often struggle to accurately predict expenses, leading to budget shortfalls. Failure to account for unexpected costs, such as technology upgrades or litigation setbacks, can strain finances.
- Overlooking Revenue Variability: Law firms frequently underestimate the variability of revenue streams. Over-reliance on a single client or practice area can result in financial instability if that source diminishes.
- Ignoring Seasonal Trends: Many firms overlook the seasonal nature of legal work, causing uneven cash flow. Failure to plan for lean periods can lead to cash flow problems and hinder financial stability.
- Unrealistic Growth Projections: Ambitious growth goals can strain resources if not aligned with your firm’s capacity. Expanding too rapidly can lead to overextension and financial difficulties.
- Inadequate Technology Investment: Failing to invest in updated legal technology can hinder efficiency and client service. Inefficient processes can inflate costs and reduce profitability.
Regulations Around Law Firm Budgeting
Within the realm of legal finance management lives regulations surrounding law firm budgeting. Law firm budgeting is subject to an extensive web of legal regulations and industry standards that you must navigate with precision. Failure to comply with these mandates can have far-reaching consequences. Here are some regulations to consider.
- Ethical standards require law firms to maintain accurate client trust accounts, also known as Interest on Lawyers’ Trust Accounts (IOLTA). This ensures that client funds are segregated and used solely for intended purposes.
- Legal ethics emphasize transparent billing practices. Failure to provide clear and accurate billing statements can lead to disputes, damaged client relationships, and potential legal malpractice claims.
- Industry standards dictate that clients must clearly define and understand fee agreements. Ambiguity or non-compliance with agreed-upon terms can lead to fee disputes and legal malpractice claims.
- Some jurisdictions require law firms to submit financial reports. Non-compliance may trigger investigations and legal actions.
Non-compliance can result in professional sanctions, financial penalties, loss of reputation, and even legal consequences, making it crucial for you to navigate these regulations diligently.
Best Practices for Effective Law Firm Financial Management
As you seek to strengthen your firm’s legal financial management strategy, consider the best practices to navigate the complexities of financial management successfully. Here are some actionable tips, including the pivotal role of technology:
- Strategic Budgeting: In order to prevent financial surprises, develop a comprehensive budget that aligns with the firm’s goals and accounts for all expenses, including those often overlooked.
- Expense Monitoring: Regularly review expenses and identify areas where cost-saving measures can be applied without compromising service quality.
- Diverse Revenue Streams: Diversify your client base and practice areas to reduce reliance on a single source of revenue, thus mitigating financial risks.
- Billing Efficiency: Implement efficient billing processes using technology such as Bill4Time, ensuring accuracy, transparency, and timeliness in invoicing clients.
- Client Trust Accounting: Scrupulously manage client trust accounts, adhering to ethical standards, and employ dedicated accounting software to automate and simplify trust accounting tasks.
- Financial Technology: Leverage modern financial management tools and software to streamline tasks like financial reporting, analytics, and compliance monitoring.
- Regular Financial Review: Conduct periodic financial reviews. Then, track progress, identify trends, and adjust strategies as needed.
- Professional Development: Invest in staff training to enhance financial acumen throughout the firm.
What is Law Firm Billing Software?
With law firm financial management, the smoking gun relies on having the best software to implement the processes. Law firm billing software is a specialized tool designed to streamline and optimize the complex process of invoicing clients for legal services rendered. Likewise, it plays a pivotal role in supporting efficient financial management within legal practices.
For example, here are some core functionalities to have in your billing software:
- Time and expense tracking
- Customized invoicing
- Automated billing
- Client portals
- Billing integration tools
When considering streamlining billing processes, choose a billing software such as Bill4Time that:
- Reduces errors
- Enhances efficiency
- Increases compliance
- Improves Client relations
In order to benefit your firm, your billing software should accelerate payment collection and enhance compliance with ethical regulatory billing standards. Streamlining processes support comprehensive financial reporting and analysis, enabling you to make informed decisions about your firm’s finances.
How Legal Payment Software Supports Financial Management at Law Firms
Legal payment software plays a pivotal role in law firms’ revenue collection and financial management strategies. Its multifaceted functionalities enhance economic efficiency and accuracy, eventually contributing to the firm’s financial health.
One key aspect is automated invoicing. Legal payment software automates the billing process, therefore, generating invoices promptly and accurately. This expedites revenue collection and reduces the risk of billing errors that can strain client relationships.
Plus, billing software solutions often offer secure payment processing options, ensuring clients can make payments conveniently and securely and enhance overall satisfaction. Another critical feature to have is real-time financial reporting. Legal payment software provides insights into your firm’s financial performance.
The right billing management software, such as Bill4Time, is indispensable for your firm’s financial management. Its ability to streamline revenue collection, secure payments, and offer real-time financial insights empowers your firm to maintain financial health and confidently make strategic decisions.
Steps to Effectively Manage Finances at Law Firms
Managing finances at your firm demands a strategic approach. In order to ensure fiscal stability and growth, follow this step-by-step guide that includes budget creation, expense tracking, revenue analysis, and financial reporting:
- Comprehensive Budget Creation: Craft a comprehensive budget that covers all financial aspects of your firm, from day-to-day operational expenses to long-term investments.
- Precise Expense Tracking: Implement a robust system for tracking expenses. After that, categorize and monitor expenditures closely to identify areas for cost-saving and resource optimization.
- Thorough Revenue Analysis: Regularly scrutinize your revenue streams. Then, identify the most profitable practice areas or clients and assess the effectiveness of your billing and collection processes.
- Strategic Financial Reporting: Develop a system for regular financial reporting. This provides insights into your firm’s financial health, enabling you to make data-driven decisions.
- Continuous Evaluation and Adaptation: Above all, be adaptable. Continuously evaluate your financial strategies and adjust them as needed in response to changing market conditions or firm-specific factors.
By following these steps, your firm can precisely navigate the intricate terrain of financial management, ensuring financial stability and a strong foundation for growth in a competitive legal landscape.
Secure Your Firm’s Financial Future By Having A Law Firm Financial Management Plan
In short, proper law firm financial management is vital to your firm’s success. A well-crafted budget, a healthy understanding of your firm’s financial position, and the appropriate law firm billing software management like Bill4Time are crucial to ensure your firm has what it takes to go the distance! Embracing financial best practices can significantly boost profitability and drive sustained growth.
The Ultimate Guide to Easy Legal Billing Software
As a law firm, one of the biggest challenges you face is ensuring that you get paid for your services. Invoicing can be a time-consuming and complicated process, but with the right legal billing software, you can simplify your billing process and accelerate your revenue. In this comprehensive guide, we will explore what makes a billing software easy to use and how you can find the best solution for your law firm’s needs.
Why is Easy Legal Billing Software Important?
In the midst of a busy legal practice, it’s crucial to have a billing software that is user-friendly and efficient. Here are some key reasons why easy legal billing software is important for your law firm:
- Time-Saving: Easy-to-use billing software streamlines the invoicing process, allowing you to quickly create, print, or email professional invoices in minutes. This saves you valuable time that can be better spent on serving your clients.
- Faster Payments: Clients often delay payment if they don’t understand the invoice. With easy legal billing software, you can provide detailed invoices that make it easier for clients to understand and pay promptly. You can also offer online payment options, further accelerating the payment process.
- Increased Productivity: Easy legal billing software allows you to batch invoices, apply payments to current invoices, and create invoice summaries quickly and easily. These features increase your workflow efficiencies and enable you to handle billing tasks more effectively.
- Professional Branding: A professional invoice template is a reflection of your law firm’s brand. With easy legal billing software, you can customize your invoices with your logo, company details, payment terms, late fees, and more. This branding helps create a positive impression and enhances your firm’s professionalism.
Now that we understand the importance of easy legal billing software, let’s dive into the features you should look for when evaluating different options.
Finding the Right Legal Billing Software for Your Firm
With the multitude of options available, finding the right legal billing software for your law firm can be overwhelming. Here are some steps to help you find the best solution:
1. Identify Your Firm’s Needs
Start by identifying your law firm’s specific billing requirements. Consider factors such as the number of users, types of cases you handle, billing rates, and integration needs with other software. This will help you narrow down the options and focus on software that aligns with your firm’s needs.
2. Research and Compare Software Options
Conduct thorough research on different legal billing software providers. Read customer reviews, visit their websites, and request demos or free trials. Pay attention to the features, ease of use, customer support, and pricing plans. Make a list of software options that meet your firm’s requirements.
3. Evaluate Integration Capabilities
Consider the software’s integration capabilities with other tools you use in your law firm, such as case management software or accounting software. Seamless integration can streamline your workflow and reduce manual data entry.
4. Check for Data Security and Compliance
Ensure that the legal billing software you choose prioritizes data security and complies with industry standards and regulations. Look for features like encryption, secure data storage, and regular backups to protect your firm’s sensitive information.
5. Consider Pricing and Scalability
Evaluate the pricing plans of the software options you are considering. Consider whether they offer flexible pricing based on the number of users or cases. Also, think about the scalability of the software. Will it be able to grow with your firm’s needs in the future?
6. Request a Demo or Free Trial
Before making a final decision, request a demo or take advantage of a free trial. This will allow you to test the software’s features, user interface, and overall usability. It also gives you an opportunity to assess the level of customer support provided by the software provider.
Easy Legal Billing Features with Bill4Time
When evaluating legal billing software options, one name that stands out is Bill4Time. Bill4Time offers a comprehensive suite of features designed specifically for law firms. Let’s explore how Bill4Time meets the criteria we discussed earlier:
User-Friendly Interface: A user-friendly interface is crucial for easy legal billing software. Look for software that has an intuitive design and a straightforward navigation system. This will ensure that you and your team can quickly adapt to the software and start using it efficiently.
Bill4Time provides an intuitive and easy-to-use interface, allowing you and your team to quickly adapt to the software.
Customizable Invoice Templates: The ability to customize invoice templates is essential for creating professional and branded invoices. Look for software that allows you to add your law firm’s logo, contact information, payment terms, and late fees. This customization will help you maintain consistency in your branding and provide a polished image to your clients.
With Bill4Time, you can easily customize invoice templates with your law firm’s branding, ensuring a professional and consistent image.
Flexible Billing Rates: Different clients may require different billing rates. Ensure that the legal billing software you choose offers flexibility in setting billing rates. Look for software that allows you to mix hourly and flat rates for every user and easily override default rates when necessary.
Bill4Time allows you to set and manage flexible billing rates, like task-based flat fees, accommodating the unique needs of your clients.
Detailed Invoices and Statements: Clear and detailed invoices are crucial for ensuring prompt payment. Look for software that allows you to create pre-bills, detailed invoices, and statements. This feature will enable you to provide clients with the necessary information to understand and pay your invoices quickly.
You can create detailed invoices and statements with Bill4Time, providing clients with the necessary information to understand and pay promptly.
Online Payment Options: Offering online payment options with Bill4Time Payments can significantly speed up the payment process. Bill4Time seamlessly integrates the invoicing process with payments, allowing your clients to make payments directly from the invoice. This convenient feature not only accelerates payment, but also enhances the client experience.
Trust Accounting Reconciliation: If your law firm handles trust accounts, ensure that the legal billing software you choose includes trust accounting reconciliation features. This will help you maintain accurate records of client funds and ensure compliance with legal and ethical requirements.
Bill4Time includes trust accounting reconciliation features, ensuring accurate management of client funds.
Integration with Accounting Software: To streamline your billing and accounting processes, look for legal billing software that integrates with popular accounting software like QuickBooks. This integration will allow you to transfer billing and financial data seamlessly, saving you time and reducing the risk of errors.
If you’re looking to switch softwares or integrate what you use now with Bill4Time, the process is easy. Bill4Time integrates with popular accounting software like QuickBooks, streamlining your billing and accounting processes.
24/7 Client Access: Consider legal billing software that provides a secure client portal where clients can access their invoices 24/7. This feature allows clients to review their invoices at their convenience and make online payments via credit card or other online payment options. It enhances client satisfaction and expedites payment.
Clients can access their invoices 24/7 via the secure Bill4Time client portal, enhancing convenience and expediting payment.
Reporting and Analytics: Reporting and analytics features provide valuable insights into your firm’s billing performance. Look for software that offers robust reporting capabilities, allowing you to track billable hours, monitor outstanding invoices, and analyze your firm’s financial performance. These features help you make informed decisions to optimize your billing processes.
Bill4Time offers robust reporting and analytics features, providing valuable insights into your firm’s billing performance.
Security and Data Protection: When considering any legal billing software, prioritize the security and protection of your data. Ensure that the software uses encryption and other security measures to safeguard your firm’s sensitive information. Additionally, review the software provider’s data handling practices, such as server location, data backup procedures, and access controls.
Bill4Time prioritizes the security and protection of your data, employing encryption and other security measures.
Use Bill4Time to Make Legal Invoicing and Billing Easy
Finding easy legal billing software is essential for streamlining your law firm’s billing process and accelerating your revenue. Consider the features we discussed, evaluate different options, and choose a software solution that meets your firm’s specific needs. With the right legal billing software, you can simplify your invoicing, get paid faster, and focus on serving your clients effectively.
To see for yourself how Bill4Time can simplify your legal billing process, request a demo from our website. Take advantage of our 14-day free trial to explore all the features and experience the ease of use firsthand.
How Customers Shaped Our New Electronic Retainers in Bill4Time Payments
When it comes to product development, one thing is certain, customer feedback is our guiding star. As product manager it’s my responsibility to listen to that feedback to ensure we are creating the right features for our customers. Over the past few months while scoping out our Bill4Time Payments launch, we repeatedly saw the need for electronic retainer payment functionality. Today, I’m happy to announce that electronic retainer payments are now available for organizations that have activated Bill4Time Payments. For the first time ever, you can now process payments online into a Trust account directly and send requests for retainer payments within Bill4Time.
Requesting Retainers or Advanced Fees With Bill4Time Payments
While accounting for law firms presents many unique challenges, the Trust accounting and retainer processes are crucial to get right in order for your law firm to remain compliant. Knowing this, our product and engineering teams worked directly with our customers to ensure that this sensitive task of maintaining compliance while using Trust payments was as simple and user-friendly as the rest of the Bill4Time platform.
So how does it work? Now in Bill4Time Payments, retainers or advanced fee requests can be utilized to request funds from your client without having to send an invoice. Depending on your unique circumstances, you have the capability to select the bank account you would like to receive the payment into — your Operating or Trust account. These payments will be tied to the Client and Matter selected and can be easily applied to pay off any outstanding or future invoices.
To remain compliant, Bill4Time never takes processing fees from any Trust account payment. In addition, any Trust fees are pulled from the linked Operating account automatically, so Trust money stays Trust money.
If you need a refresher on Trust accounting and the importance of separate Operating and Trust accounts, I highly recommend reading our Trust accounting refresher blog that gives a great overview of what you need to know in order to remain compliant.
A Familiar, User-Friendly Experience Awaits
Receiving retainer payments should feel intuitive for organizations using Bill4Time Payments and their clients who have used the platform already. Just as you would send a request for payment to your client from the new Bill4Time Payments tab, you can now do the same for a retainer request. The primary difference here is the necessary steps needed to select which bank account your funds will be deposited into.
Once sent, your clients will receive an email containing a link to pay, just as they do when sent an invoice directly from Bill4Time. They will then be able to pay the retainer request via Credit Card or eCheck. Once the payment has been processed, they will receive a payment confirmation email with all relevant information for their personal records.
For a complete walkthrough of the Bill4Time Payments Retainer process, check out our Knowledge Base article.
While these sample screens seem relatively straightforward, they hold a tremendous amount of information that can be read by any attorney in a matter of moments. This isn’t by chance — it took many iterations and reviews by our dedicated Bill4Time Product Council customers before we felt we had the right workflow for all of our customers to succeed.
Whether it be Zoom walkthroughs, feedback via phone and email, or even deep-dive surveys, our Product Council customers were integral to the success of this new electronic retainer feature. If you are curious about being part of our Product Council and wish to shape the future of Bill4Time as a whole, we are always looking for willing participants. Current customers can fill out this simple form to begin the process.
We’re thrilled to offer electronic retainer payments to Bill4Time Payments customers. We know how important it is to the integrity of your billing process and the overall success of your business. You can get started with electronic retainer payments today by visiting the payments tab in your account, or activate Bill4Time Payments by submitting the application in your account — it only takes ten minutes to apply.
If you’ve been waiting on retainer payment functionality to get started using Bill4Time, sign up for a customized demo below to learn how to get started.
The Law School Student’s Ultimate Guide To Digital Competency
Almost all of them are in debt.
The vast majority of law students graduate with an avalanche of debt. U.S. News wanted to answer a simple question. Which law school graduates have the most debt?
The answer is sobering.
In every law school except two, more than half the student population graduated heavily in debt. In some schools like the Southern University Law Center or Florida A&M University, 100 percent of their students graduated with debt ($94,447 and $61,500 respectively).
Debit is a facilitator and Law school is a worthwhile pursuit
This isn’t a tongue-in-cheek claim.
The data shows that most of the time, law school is absolutely worth it for graduates. If graduates are able to land a job with the right firm, their career is off to a fantastic and promising start.
Turns out that’s a big if.
According to Law School Transparency, the resultant debt from the average amount borrowed is $120,000. New graduates at the lowest end of the spectrum make $50,000 annually, those on the highest end make $190,000.
It’s not ideal but a graduate making $50,000 per year can still make headway, build a successful career and pay down their loan.
Certainly not ideal, but it can work.
Here’s the problem.
Law school graduates aren’t winning the jobs and opportunities they need. Don’t take my word for it. Let’s look at the data instead to be sure.
According to Paul L. Caron, Dean Pepperdine University School of Law, demand for legal services is declining. The number of graduates has also decreased.
The ABA Journal released a report showing that less than half of graduates had jobs before graduation. The evidence shows a large segment of the law school population doesn’t fare any better post-graduation.
Perhaps this is good news?
Not so much. The percentage of grads employed in (full time/long term) jobs is up, but the total number of opportunities decreased from 28,029 to 26,923. The Bureau of Labor Statistics confirms this stating:
“Competition for jobs over the next 10 years is expected to be strong because more students graduate from law school each year than there are jobs available.“
There are lots of graduates and but there’s not enough employment opportunities to go around. Here’s what this means for you.
If you’re a law student you need an edge.
You need a mix of both quantitative and qualitative skills to succeed in the highly competitive environment you’re already swimming in. When I use the words quantitative and qualitative here’s what I mean.
Quantitative skills | Qualitative skills |
Conscientiousness (high) | Agreeableness (high) |
Good written/oral communication | Openness (high) |
Analytical and logical reasoning (high) | Neuroticism (low) |
Research skills (high) | Organization |
Knowledge of substantive law and legal procedure | Teamwork |
Time management | Attention to detail |
These skills are the basics.
Here’s the problem with this list of skills. They’re useful but they’re also quite generic. If you’re a graduate who’s looking to attract a significant amount of employer attention you’re going to need more help.
Dr. Bradford Smart has the answer.
Dr. Smart is the co-founder of Topgrading, a hiring and interviewing methodology that helps firms to identify A player, top-shelf employees. In his book, Smart lists 60+ core competencies an A player needs to qualify as an “A player.”
Here are the behaviors or core competencies that are required for A players. Some of these competencies are easy to change if you don’t have them. Others are harder change, some are virtually impossible.
See what I mean?
If you’ve read this far you probably have the same questions as other readers. This post is supposed to be about digital competency. Why are we talking about job skills, hireability, and core competencies?
Competencies determine success.
These core competencies are the beginning, the foundation that your digital competency needs to be successful.
Here’s why.
Sharing the strategies needed to build digital competency, win your coveted spot in the right firm and keep your position requires these core competencies.
Advice without context creates resistance.
Digital competency is a proxy for… something else
It’s one of the tools law firms use to evaluate, rate and vet potential graduates/candidates. It’s something most graduates won’t do.
Meaning what exactly?
When it comes to digital competency, law firms are focused on very specific details. Law firms, like their clients, are under a significant amount of pressure to perform. They need new associates (recent graduates), who can hit the ground running. These are the graduates who consistently win excellent positions with well-paying firms.
What do these graduates have that others don’t?
Let’s take a look at the specific details you’ll need to achieve the competency you want.
Step #1: Assess your digital competency
You’re aware of the requirements that come with digital competency and why they’re important. You’re also aware of the consequences, how they impact you and your future firm. Here are a few questions you can ask yourself to assess your level of digital competency.
You…
- Understand the pros and cons of online storage options (g. cloud, hard drive and portable storage)
- Know/can identify the appropriate format to store data as well as when each format should be used (e. client data stored on secure hard drives, contract templates stored on cloud document management portals)
- Understand how search engines like Google store, classify and retrieve information
- Know how the Internet works (i.e. it’s a giant network), how people, private companies and governments use it
- Are aware of the various digital services (g. document assembly/management, timekeeping tools, practice management software, e-discovery software, etc.) the formats available (e.g. On-premise, SaaS, IaaS and PaaS software) and you know how to use them
- Understand the consequences of communicating through various media channels (g. phone, chat, video, text, social media, etc.)
- Understand the consequences of identity contribution (g. discussing a client’s matter or sharing private information on social media)
- Can easily distinguish between personal/public information and sensitive data
- Have a professional understanding of legal frames (g. how the law governs rumors, gossip, spam, intellectual property, private data, threats, accusations, etc.)
- Have a general understanding of security best practices (g. following best practices for creating, storing and retrieving passwords)
- know how to encrypt sensitive data (g. two-factor authentication, encryption, password protection or digital fingerprints)
- Know of/have various methods to identify fishing, malware and social engineering attacks
- Have the capacity to learn and/or manage new software/technology on your own
- Have a methodology or protocols in place to personally stay up-to-date with technology changes
- Can perform an in-depth search of information/footprints about yourself and others
- Have a habit of routinely backing up and restoring relevant digital devices and data
- Can competently make a determination of illegal vs. inappropriate behavior (g. bullying vs. leaking secrets)
- Consistently consider the source and location of the data you receive
- Familiar with the terms and conditions of your digital services (g. Avvo’s terms of use)
- Communicate digitally with the appropriate voice, tone and detail
If you’re feeling brave you can take the quiz.
Can you see how many of these questions communicate the core competencies we identified earlier? These details, things your future employer can see, communicates details about you they can’t see.
Step #2: Become acquainted with the software
Your (future) firm needs new associates, graduates who can hit the ground running (you). This means you’ll need a clear idea of the software tools and resources your firm uses to serve its clients.
Isn’t this a bad idea?
Let’s say you learn to use a particular piece of software. You’re hired on at a fantastic law firm but you find the software they use is different. Wouldn’t that mean it’s all for nothing?
Absolutely not.
When it comes to software, there’s a significant amount of overlap. The specific software tool you use isn’t as important as you familiarizing yourself with them. If you’re familiar with the details of one software vendor you’ll have an easier time learning (or re-learning) the details of another tool.
Okay, which software tools do you need?
Practice management
Practice management software actually refers to a suite of tools firms can use to manage their operations. Most attorneys spend 6 to 8 hours a day on nonbillable work. They’re essentially paid for one to three hours of work per day.
Not good.
Practice management software includes some or all of the specific functions listed below. Practice management software is important for a few distinct reasons.
- The software and forces firm-wide standards. When attorneys track their time, the entire firm relies on a unified measurement of time. This eliminates the everyman for him/herself scenarios that are so common in firms today.
- Practice management software boost revenue by 50% or more. Most firms bill for their time. Attorneys who wait one week to fill out their timesheets lose 50% of their revenue. Attorneys in many firms typically fill out their timesheets at the end of the month. Yikes.
- Security and disaster recovery are built-in. Cybercriminals target law firms because they’re data-rich sources with deep pockets. Law firms are prime targets for ransomware, malware and phishing schemes. Cloud-based practice management software reduces these threats dramatically, limiting the amount of data available to cybercriminals.
Productivity/project management
Productivity software enables firms to manage who’s responsible for what and when. Firms are able to manage deadlines and the distribution of work automatically. These productivity and project management tools give firms the ability to measure performance at a glance.
You’ll be able to identify the attorneys, paralegals and support teams caring their weight and those who are not. Law students will want to become acquainted with these standalone tools. How they work, the permissions required, who uses them, how they are used and when.
PDF conversion software
Many firms want to be paperless. PDF conversion is still important as law firm still receive physical documents on a regular basis. PDF conversion software allows you to scan and convert physical documents into digital copies. Adobe Acrobat is still the gold standard so it’s important to become acquainted with these tools, including how they work, what they’re used for, and when.
Document assembly/management
Document automation eliminates or reduces a firm’s dependence on mail merge. Document automation enables firms to customize pre-existing legal docs, enabling attorneys to insert boilerplate clauses and non-generic content into documents that require customization.
This is important because, as we’ve covered previously, clients are less willing to pay for routine or generic work.
They’re looking for value.
Document assembly maximizes your time (as an attorney) on high value, high-risk matters. It also simultaneously reduces the time spent on routine or mundane matters, which is exactly what your clients want.
What about document management?
70 percent of IT managers surveyed “know or believe that users (employees) have business (client) data in their own personal file-sharing accounts.” This basically means attorneys and other firms are storing sensitive client data in their personal Dropbox accounts.
A serious red flag and a major liability for offending firms.
Document management software provides firms with the user rights/permissions and security they need. Office managers won’t have access to sensitive client data they don’t need. When documents are difficult to find, law firms recreate them. When they need mobile access but that access isn’t available, they ask someone else to recreate them.
This creates unpleasant questions:
“Which document version is required for your client’s matter? Who has the right version? Is it you? Are you sure this is the right version? Do you have access to the right version?”
Law students should be fully acquainted with document management and storage software. You should understand how this software handles version control, search and user rights/permissions.
Time tracking, billing and accounting
Time tracking software isn’t created equal. If you’re going to work with time tracking, billing and accounting software, you’ll need to make sure the software you study follows a specific set of criteria:
- A convenient timekeeping method. The best automated or semi-automated. They provide attorneys with a convenient way to track their time as-it-happens. This eliminates billable leaks and ensures attorneys are focused on tracking their time. Time tracking is important even firms rely on alternative fee arrangements.
- Provide invoicing directly in the program. Attorneys should be able to create an invoice directly from their time tracking program. It’s ideal if the software works with UTBMS and LEDES billing codes.
- Allows for trust accounting reconciliation and IOLTA administration and management, ensuring compliance and proper management of client trust accounts.
- Provides robust reporting covering a variety of details including firm realization, accounting activity, client details, time and expense entries, user activity projects/matters productivity over time, etc.
Law students should spend a significant amount of time working with time tracking, billing and accounting software from an industry leader.
Case management
Case management software typically includes contact management (with a global search for conflict checks), calendar management, email archives, time tracking, billing and accounting. You want to learn to use these tools with appropriate details.
Learn how to schedule events, track emails (and conflicts), manage contacts and work with archives.
Internal communication
Slack, Apple’s Facetime, Microsoft Skype and Google Hangouts have been touted as helpful tools for lawyers to use in their practice. Here’s the problem: Facetime and Hangouts stores your content on their servers indefinitely. Skype stores content from calls with more than two participants.
Your conversations as a firm employee aren’t necessarily private.
They’re easily accessible via legal (subpoenas) and illegal (hacks, phishing) methods which means this is an enormous disaster waiting to happen. There are also a few significant downsides. These options don’t record meetings, chats and files. They also don’t integrate with the tools and resources your firm is already using.
Your firm needs (and may already own) secure software that allows you to communicate with your future team privately and securely. You’ll need to know how to use secure communication tools that provide you and your (future) clients with the privacy, control and security they need.
This is what you need to achieve digital competency
What if you’re way off?
What if you missed the mark completely focusing on insignificant details from software that isn’t a fit. There’s an easy way to avoid the situation.
First, determine where you’d like to work. If you’re interested in BigLaw, reach out to employees at other firms and ask for their help. Small to medium-sized firms? Do the same thing.
Second, ask them about the software programs they use. If they ask why tell the truth. Tell them you’re looking to improve your chances of winning a BigLaw position and you’re looking to become digitally competent. Let them know that you’re looking for ways to learn more about the tools and resources you’ll need to be great at your job.
Take notes.
Third, reach out to these companies and ask for their help. Tell them the truth as well then ask for what you want. A free copy or student license of the software so you can learn. Tell them you’d like to share their software with your classmates (only if it’s true).
Rinse and repeat.
When you get a free copy or license get to work. Take the time to get to know their software, tools and resources. Create a sample project or matter you can work on.
Finally, update your resume. List the software, tools and resources you studied on your resume.
Digital competency isn’t optional
It’s a requirement if you want to win.
Law schools are shaking up their curriculum, prioritizing digital competency ensuring graduates are better prepared for life after the bar. Change is slow.
Law school students can improve their postgraduate prospects by focusing on their core competencies. The skills and technology needed in their practice area/firm.
As far as critical thinking goes, lawyers are exceptional.
Law firms aren’t resisting technology, they’re embracing it, albeit slowly. Firms all around the country are adapting to meet the high-pressure demands of today’s modern client.
Adapt now and you’ll win.
Use this guide to digital competency, and you’ll have the tools and resources you need to show firms you’re the better candidate.
How Family Law Firms Can Get the Most Out of Bill4Time
Picture this.
You’ve just signed up for a free trial of Bill4Time. You’re looking to maximize your Family Law Firm’s performance. You know what you want. You’re looking to achieve rapid (and profitable growth).
You want more clients.
You’re looking for a dramatic reduction of your non-billable work. A way to reduce billable leakage and avoid filling out timesheets altogether. You’re not sure about practice management software but you’ve decided to give this a chance.
How do you get the most out of Bill4Time?
Step #1: Throw everything you have at Bill4Time
Use it as your workhorse.
Skepticism is an important part of belief. When law firms take advantage of our free trial they’re skeptical. Can the platform do what they say? Is it really possible to produce the results others have experienced?
Skepticism shows you.
Add your clients, projects and matters. If you’re not sure how, ask a real person to help you get started. Dump your problems onto the platform. You’re looking to see if the platform can handle your heaviest workload with zero malfunctions or setbacks.
- How long does it take you to set up all of your client/matters and begin billing time?
- Drop your clients, projects and matters on the platform
- Verify that automatic time tracking is truly automatic
- Outline billing, invoicing and collections
- Throw your accounts receivable and collections at the system
- Test the platform on desktop, smartphone and mobile simultaneously
You’re looking for downtime or failure points.
You’ll want to push the platform as hard as you can. Upload documents, test compliance requirements (e.g. LEDES exporting). Push the software as hard as you can, for as long as you can.
Why?You’re confirming three things (1.) that Bill4Time can support your firm where you are right now, (2.) that it can produce the results you need whenever you need them and (3.) the platform can grow as fast as you need it to.
Step #2: Confirm features are interconnected
Features are nice.
But can they work together? Are these features interconnected? Can they perform as expected together or will the system wilt under pressure?
- Do the calendar and event tracking sync with billing, invoicing and collections? Are these features a seamless part of your billing workflow?
- Can you transfer/convert appointments and events into your billing workflow?
- Are you able to manage and maintain firm-wide standards across a variety of environments and rule sets?
- Can you track various billing rates for hourly/flat fee work across all associates?
- How easy is it to record, view, and edit time entries? Can you automatically feed them into invoices?
- Is the platform’s trust accounting functionality accurate, reliable and straightforward?
- Are staff required to enter/track time or manage timesheets?
- Can you add/create multiple cases under one client without having to duplicate the client?
You’ll want to verify that relevant features work together flawlessly. Data that’s added in one part of the platform should remain consistent across other feature sets.
Look for consistency.
Step #3: Validate our customer service
How good are we really?
Can you reach a real person when you call? How long does it take to connect with someone via live chat? When you do connect with us what’s the support like?
- Are support reps knowledgeable and clear?
- How often are your questions answered completely and concisely?
- Are support teams patient and kind or are they condescending and rude?
- How long do you have to wait for help or a reply to your support ticket?
- What do other customers say about the product?
- How do support teams handle “dumb” questions?
- Will support reps import your clients for you?
You’ll want to verify and validate our customer support.
Use your questions to test the platform
Look for results.
A dramatic reduction of your non-billable work. A way to reduce billable leakage and avoid filling out timesheets altogether. To improve your firm’s utilization and realization rates.
Squeeze out value.
Add your clients, projects and matters. Confirm that relevant features are interconnected. Validate our customer service. Push for value, confirm results.
Put us to the test. Start your free trial today.