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billable hours

Is There an App to Track Billable Hours?

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Whether you’re new to billing clients or have been tracking time for years, one thing is certain — staying on top of every minute spent on a case is a challenge. You might have days where you hop from one task to another, making it hard to accurately track time. And without a system in place or some kind of attorney time tracking template, this can lead to missed hours, inaccurate billing, and even tension with clients over unclear invoices.

Technology, fortunately, can make time tracking much easier. Many legal time tracking software solutions have a corresponding app for on-the-go tracking. These tools can help lawyers record every action taken on behalf of a client, no matter where they are. 

But with so many options available, figuring out which one best fits your needs isn’t always obvious. Let’s take a closer look at how firms are currently handling billable hours and what you should look for in a tracking app. By the end of this, you’ll have a clearer idea of what’s important and how to make the best decision for your practice.

How Do Law Firms Track Billable Hours

How Do Law Firms Track Billable Hours?

Most law firms today rely on comprehensive law practice management software to track billable hours. Time tracking is often integrated directly into these systems, allowing you to log hours without switching between multiple platforms. 

The best options offer built-in timers that you can start and stop as they work. You can also categorize tasks, link them to specific matters and contacts, and automatically feed the data into your firm’s billing system. Many of these platforms also include a mobile app, allowing you to track time on the go and access all of your firm data. 

Here’s how it typically works: let’s say you’re heading into a client meeting, and you open the app on your phone or laptop. Before you start the timer, you select the client and matter from a dropdown menu in the app, tying the time directly to the correct case. When you wrap up, you stop the timer and enter any additional description for billing purposes. The app then automatically saves the time to that client’s matter, so when you generate the bill, it’s already included, ready to be invoiced.

This approach gives you much more than a simple stopwatch — it also helps categorize and document your work accurately. If, for instance, you spend an hour in court, you can open the app as soon as you leave, enter “court appearance,” and tag it to the client. If you take a break to answer a quick email for another client, you pause the original timer and start a new one, assigning the time to the right client as you go. 

Ultimately, it removes the mental burden of trying to remember scattered tasks, making sure you don’t miss recording any billable work, even during a busy day.

Is There a Free Timer for Billable Hours?

There are free options available for tracking your billable hours; however, while the price point of free tools can be attractive, they typically come with limitations. You might find that the free versions offer fewer features, such as no ability to export time reports or lack of integration with other systems you’re using. All of this can slow down your workflow, especially if you spend time manually transferring hours into invoices or generating reports by hand.

Another issue to consider is security. Free apps may not have the same level of data protection as paid versions, which could be problematic when dealing with sensitive client information. Always confirm that any app you choose meets legal ethics and privacy requirements, as you don’t want to accidentally expose confidential data through a poorly protected platform.

In short, free timers can be a good starting point for tracking billable hours, but they may not offer the comprehensive features that established firms require. If you’re simply looking to get a sense of how much time you’re spending on different tasks, a free timer might work. But as your practice grows, you’ll likely need something more robust.

Is There an App to Track Hours Worked on iPhone

Is There an App to Track Hours Worked on iPhone and Android?

Bill4Time offers a mobile app for both iPhone and Android, providing the convenience of tracking billable hours wherever your work takes you. The mobile app is an added convenience for those times when you need to track billable hours on the go, but the full platform is available whether you’re at your desk or working remotely.

What Is the Best Real-Time Tracking App?

Bill4Time is by far the best real-time tracking app for legal professionals. It’s packed with features that help lawyers keep track of billable hours, boost productivity, and simplify billing. Overall, it lets you handle your time tracking in a way that makes sense for legal work.

Here are a few other Bill4Time features that can help you manage your billable hours:

  • Real-time syncing across devices: You can log hours on your phone, and everything also updates on your desktop. That way, you don’t have to worry about gaps between what you’ve logged on the go and what you need to bill once you’re back in the office.
  • Task-specific time tracking: Bill4Time is a task manager with time tracking, so it allows you to assign time to specific tasks, clients, or matters. You can break down your time entries by activity, making it easier to see where your day went and to bill clients accurately based on the type of work performed.
  • Billing rate flexibility: Different tasks or clients often require different billing rates, and Bill4Time makes it easy to assign those rates to each time entry.
  • Custom reporting: Bill4Time generates law firm operations reports that help you see important data, like outstanding balances, aging accounts, expenses in a certain time period, productivity, user activity, and so much more.
  • Invoice generation: Once you log your time, Bill4Time can automatically create invoices with itemized billing. It handles everything from tracking retainers to creating trust account reports, taking the hassle out of the billing process.

Bill4Time is built to handle the complexities of legal work without adding extra stress. Whether you’re working from the office, at home, or on the go, the app syncs across devices so you never miss a beat. If you’re looking to take control of your time and make billing easier, sign up for a Bill4Time demo today and see firsthand how it can transform your practice.

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7 Tactful Strategies for Justifying an Attorney Rate Increase to Clients

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Raising your rates can feel like walking a tightrope. On one hand, you want to be fairly compensated for your work. On the other, you don’t want clients to balk at the idea of paying more.

So, how do you handle this? It starts with communication and a strategy that shows your value clearly. Let’s look at a some averages on hourly rates to see if a rate increase is appropriate along with a few ways you can approach this conversation.

What Do Top Lawyers Bill per Hour?

When it comes to billing rates, Washington, D.C., leads the pack. According to a recent law firm billing rates survey by the National Association of Legal Fee Analysis, D.C. is home to the highest litigation billing rates in the country. A quarter of litigators in the nation’s capital report billing between $951 and $1,300 per hour, with a small but notable number charging even more. The survey, which included responses from over 2,000 attorneys in D.C., showed that 97 attorneys charge more than $1,300 per hour.

In comparison, what is the hourly rate for a lawyer in California, another big legal market? San Francisco, which ranked second, had only 13% of attorneys in that top tier of billing rates. The difference between the two cities highlights D.C.’s dominance in litigation, driven by the high concentration of major law firms and increasing associate salaries. Billing rates in D.C. are expected to continue rising, with firms in both the U.S. and U.K. anticipating increases in the next year.

While these elite rates are impressive, attorneys outside major markets should assess their own circumstances carefully. When asking, “What is a reasonable fee for me to charge?” you’ll need to consider regional factors, such as client demand, practice area, competition, and the average rate for your area.

What Is the Average Lawyer Cost per Hour?

According to that same survey by the National Association of Legal Fee Analysis, the national average for attorney billing rates in 2023 ranged from $300 to $500 per hour for many common legal services, such as general civil litigation and family law. However, in more specialized fields like intellectual property, corporate law, or complex litigation, rates can be significantly higher, often exceeding $800 per hour. Attorneys in smaller markets or less populated areas, like the Midwest or Southeast, tend to charge lower rates, usually between $200 and $400 per hour.

Another method you can use to determine an appropriate hourly rate is by using legal practice management software like Bill4Time. Bill4Time’s detailed reporting features can give you insight into your billing practices, profitability, and time spent on cases. By analyzing time-tracking reports and revenue data, you can assess if your current rates cover costs and reflect the value they’re providing. For instance, you can review time spent on cases versus amounts billed, factoring in write-downs or discounts, to determine if your rates need to be adjusted.

Once you’ve determined an hourly rate, and it happens to be higher than what you’re charging, it’s now time to consider how you will inform your clients of the rate increase.

How Do I Inform Clients of an Attorney Rate Increase?

Overall, clients are more likely to accept an hourly rate increase if they feel the increase is justified and communicated with care. Here are some effective strategies for approaching the conversation:

  1. Advance Notice: Give clients ample time to adjust. Inform them well before the increase takes effect, ideally at least 30 to 60 days in advance, so they have time to process the change, ask questions, and budget accordingly.
  2. Explain the Reason: Be transparent about why rates are going up. Whether it’s due to rising operational costs, increased demand, or the growing complexity of legal matters, clients appreciate understanding the reasoning behind the decision.
  3. Highlight the Value: Emphasize the benefits and value the client will continue to receive. If you’ve achieved significant results for the client or your services have evolved, this is a good opportunity to remind them of the quality and expertise they’re paying for.
  4. Personalize the Message: Avoid sending a generic notice. Personalized emails or letters, or even a direct conversation, show that you value the relationship. Mention specific cases or outcomes you’ve worked on together to make the client feel recognized.
  5. Offer Options: If appropriate, consider offering phased increases or alternative payment plans, especially for long-term or high-value clients. This can soften the impact of the rate change.
  6. Communicate with Confidence: Avoid apologizing for the increase. Instead, present it confidently, focusing on the value and service you provide, and assure clients that they are still receiving top-notch legal representation.
  7. Address Concerns Directly: Be prepared to handle any concerns or pushback. Offer to discuss the increase and explain why it’s necessary, and reinforce the positive aspects of continuing the relationship.

These tactics help to maintain trust while communicating important changes clearly and professionally.

Attorney Rate Increase Letter Sample

Below is a personalized sample letter that ensures your clients understand the reasoning behind the change while emphasizing the value they continue to receive. Take this template as a starting point and adjust it according to your firm’s needs:

Dear [Client’s Name],

I hope you’re doing well. It’s been a privilege working with you on [specific matter or case type], and I truly value the trust you’ve placed in us to handle your legal needs.

As things have progressed, and as the demands of [specific case type or area of law] continue to grow, we’ve taken steps to stay ahead of the curve. To keep providing the level of service and attention to detail you’ve come to expect, we’re updating our rates. Starting on [effective date, at least 30-60 days in advance], our hourly rate will increase from [current rate] to [new rate]. This update allows us to continue dedicating the resources necessary to meet the evolving complexities of your legal matters.

I’ve always appreciated how smoothly we’ve worked together, especially on [briefly mention a positive outcome or collaboration]. Those results are a direct reflection of our shared commitment to achieving the best possible outcomes, and we’re excited to continue that momentum.

If you have any questions about the new rates or would like to explore other options such as [payment plans, phased increases, etc.], please don’t hesitate to reach out. I truly value our partnership, and I look forward to continuing to provide the support you need.

Best regards,

[Your Name, Firm, and Contact Information]

Make Rate Adjustments Easier with Bill4Time

Figuring out when to raise your rates can feel uncertain, but it helps to have clear data. Bill4Time’s reporting features allow you to review your billable hours, case details, and revenue trends to see if your current rates reflect the work you’re putting in. It’s a practical way to decide if an increase makes sense based on what’s actually happening in your practice.

Wondering if Bill4Time is the right fit for your practice? Sign up for a demo or free trial and see how it simplifies billing, rate decisions, and so much more.Try Bill4Time for free.

How Do I Track My Billable Hours?

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Lawyers track billable hours in a variety of ways, some more effective than others. The two most common methods for tracking billable hours are:

1. Legal Software: Many attorneys rely on specialized legal time tracking software with built-in timers and task-tracking capabilities. This technology allows for accurate logging of hours spent on client-specific activities. Each entry is tied directly to client cases, making billing and financial tracking seamless.

2. Manual Timekeeping: Some practitioners still prefer traditional methods like spreadsheets or handwritten logs to record their time. For those who prefer manual timekeeping, keeping billable hours vs. actual hours separate demands high discipline to ensure accuracy.

Choosing the right method can make a big difference. To help you decide, let’s explore what billable hours involve and how you can manage them effectively.

What Is an Example of a Billable Hour?

What Is an Example of a Billable Hour?

A billable hour is time spent on tasks that directly benefit a client. For example, when you are drafting a legal document, that’s a billable hour. Meeting with clients or opposing counsel also counts. These tasks involve using your expertise to move a client’s case forward.

Other examples of billable hours include:

  • Researching case law
  • Preparing for trial
  • Reviewing a case file
  • Attending court hearings
  • Taking depositions
  • Consulting with experts
  • Attending mediation 

It’s important to separate billable hours from non-billable ones. Time spent on administrative work, like managing your firm’s website or attending internal meetings, isn’t billable. The key is to keep your billing clear and honest. Billing accurately builds trust with your clients and ensures you’re compensated fairly for your work.

Using proper timekeeping practices helps you log these hours accurately. Legal software is particularly beneficial in tracking your time efficiently, reducing the risk of errors that occur with manual logs.  Whatever method you choose, make sure you track your time in a way that works best for you. This way, you won’t miss out on billing for any work done.

For additional guidance, you can use UTBMS (Uniform Task-Based Management System) codes to determine what qualifies as a billable hour. These codes standardize legal work, billing, and categorization, making it easier to track and bill accurately. You can find more information on UTBMS codes here.

How Do You Account for Billable Hours on the Go?

Tracking time efficiently and accurately has always been challenging, but the rise of remote and hybrid work has added complexity. Modern lawyers now work on the go and in different locations, making it more difficult to track hours in real-time.

However, mobile apps and digital platforms designed for lawyer time tracking can help with logging hours in real-time, no matter where you’re working.

For example, Bill4Time offers sophisticated timekeeping tools to capture both billable and non-billable hours in real time from any device with an internet connection. With the accompanying mobile app, you can easily set and stop timers, pick up where you left off, and convert appointments into time entries from any device at any time.

Though trying to figure out how to track billable hours in Excel or building a billable hours calculator in Excel might seem like viable options, they often end up being tedious and error-prone. Legal time tracking software makes things easier and more accurate, so you can rest assured your billing is correct.

How Do You Account for Billable Hours on the Go

How Do I Calculate Billable Hours?

Logging and tracking hours is only one part of the equation — you have to calculate your billable hours, too, starting with choosing an appropriate billing increment.

The standard 6-minute increment is the “sweet spot” for time, but it’s also easy to calculate. 6-minute increments are 1/10th of an hour. To calculate time, divide the time spent in minutes by 6, which is equal to 0.1 of an hour. So, for a 37-minute task, you would have six increments or 0.6 hours.

Similarly, if you use 15-minute increments – another common increment in the legal industry — you would divide the number by 15. Each time increment is 0.25 of an hour, so 45 minutes of work equals .75 hours for billing. This calculation is often second nature, since we tell time based on quarters of an hour.

Once you have your work time represented in hours, you must calculate your billable hours. Multiply the increment by your billable hours rate for billing.

For example, if you worked for an hour and 10 minutes with an hourly rate of $300, the calculation would be 1.2 x $300 = $360. The $360 total is what you’ll bill to the client for that time, plus any other hours or expenses.

Tips for Calculating Billable Hours

The billable hours process takes time to perfect. Here are some best practices to ensure accuracy and efficiency:

  • Understand your billable and non-billable activities, such as client meetings and case research (client case) vs. billing and invoicing (administrative).
  • Stay consistent with your timekeeping practices, including your billing increments and hourly rate, the tasks you bill for, and how often you bill clients. This process ensures you are transparent and builds client trust while minimizing the risk of errors.
  • Track your financial performance with billable and non-billable hours. Look for trends to determine what tasks are profitable for your firm, what tasks aren’t, and how you can improve efficiency and productivity.
  • Use time tracking software to record your billable hours accurately. Investing in professional, legal-specific time tracking software offers more capabilities and features to elevate your time tracking and billing processes.

How Can I Track My Billable Hours for Free?

While you can track your billable hours for free using basic apps, these often lack security or features specific to lawyers. Some other limitations include:

  • Data Loss: Inadequate security can lead to lost time entries and compromised data.
  • Manual Errors: Free apps can lead to manual entry mistakes, resulting in inaccurate billing.
  • Lack of Real-Time Tracking: Some free apps do not offer real-time tracking, making it easy to miss logging crucial billable hours.
  • Security Risks: Free apps often have weak security measures, risking sensitive client information.
  • Restrictions: Free apps may limit the number of clients or projects you can manage and might display annoying ads.
  • Limited Features: Even the best free time tracking app may lack essential features like advanced reporting note-taking capabilities.

A free billable hours tracker for employees at your firm might seem attractive, but free versions often have hidden costs. Security risks, missing features, and the potential for errors make them less suitable for professional use. Investing in specialized legal time tracking software can enhance your practice’s efficiency, provide peace of mind, and help you serve your clients better.

For example, you might find Bill4Time a valuable solution. It offers automatic time capture, secure data storage, and detailed reporting, making tracking and billing straightforward. Check out a free demo or start a free trial to see how it works for you.