legal billing

How Much Does Legal Billing Software Cost?

April 24, 2025 By Dan Bowman Leave a Comment

Attorney time and billing software can cost around $30 per month per user to hundreds of dollars per month per user, depending on the provider. There are a variety of legal e-billing vendors to choose from, each with their own sets of features, all of which are around a similar price point. But if you really want to know how much a billing software will cost you per month, you’ll need to consider more than price; it’s also about worth.

The true value of billing software is in saved time, smooth workflows, and an overall easier collection process. With that in mind, the best software will feel less like an expense, and more like an essential piece of your practice — one that runs things behind the scene so you can focus more attention on your clients and billable tasks.

What Factors Affect the Cost of Legal Billing Software?

The main factors that affect billing software’s price are the features they offer, the size of your firm, any unique needs of your practice, and the provider’s payment plans. You will commonly see multiple ‘tiers’ of pricing with scaling offerings of features, support, and integrations. Depending on the provider, there may also be added fees to look out for, particularly if their software does not have its own payment processor.

Regardless of the numbers, providers typically price on a per-user, per-month basis. Sometimes, they will offer a slight discount for paying annually versus monthly; for example, Bill4Time’s basic plan comes at a lower rate when paid annually and includes more within its base pricing than many others at a similar level.

Another factor for pricing is whether the software is cloud-based or uses on-premise technology. Typically, cloud-based software is almost always the best option; it’s cheaper due to using less hardware and requires far less maintenance from you, the end user. Additionally, cloud-based billing software is far more flexible, particularly those that come with mobile app support.

Cloud technology also saves money by letting you incorporate smart devices your business already has, cutting down upfront investment even further. On top of that, cloud technology has consistent pricing and can easily scale up as your business grows and gains new, loyal clients.

Is Free Legal Billing Software an Option for Law Firms?

That depends on how you define ‘option.’ Free tools may seem like a smart move, but in reality, they will end up costing you more than they ‘save.’ So, when it comes to legal billing software, free is less of a green light and more of a red flag.

The word free is pretty tempting, especially for a small law firm owner. But free software rarely offers any security, support, or meaningful features. Even if the software does happen to have good features, they will most likely be sitting behind a paywall. On top of that, you’ll likely be stuck figuring it out solo, with no guidance on ways to actually improve your billing process.

Rather than asking, “What’s the cheapest billing tool I can get by with?” ask: “What software is actually going to help my practice thrive?” The right billing solution won’t feel like an expense; it’ll be momentum to your firm’s success. If it doesn’t feel like that, then it’s not the right choice.

With that in mind…

**What’s the Right Legal Billing Software Budget for Your Firm?**

The right budget strikes a balance between price and value: a price you can afford, with a value that you want. So to find the right fit, start by asking: what is most valuable to your firm?

Are you looking to save time?
Do you want support for compliance?
Want to simplify the invoicing process?
Need to speed up collections?
Seeking a better billing workflow overall?

Any or all of these can be answered with legal billing software. But finding the right software for your firm’s practice matters more than picking something with trendy features. A solid way to evaluate cost is to consider how many billable hours you could recover by using the software. If it saves even a few hours a month on invoicing, follow-ups, or reconciling payments, the time regained may outweigh the monthly fee.

Before committing to any software, make sure to do a free trial — regardless of who the provider is. Just because a platform has high marks and five-star reviews doesn’t mean it will work well with your firm. Plus, since most software is cloud-based, free trials don’t require tons of setup.

How Much Should Billing Software Cost for a Small Law Firm?

Billing software pricing can vary widely depending on the provider, the size of your firm, and the features included. Most platforms offer tiered plans to accommodate different needs. For instance, Bill4Time’s entry-level plan starts at $27 per user, per month when billed annually.

But price is just one of many factors that determine the true “cost” of billing software. The “cheapest” option might cost less money, but it also might end up costing you missed hours, clerical errors, and unpaid invoices.

If the software doesn’t actively save you time, stress, and energy, then it’s not worth the price. Look for software that’s both affordable and helpful. Good providers offer software that’s user-friendly, flexible, and efficient — and that’s what we provide at Bill4Time.

Bill4Time strikes a keen balance between cost and value. For less than $30 per month, you’ll have a simple, efficient, streamlined way of handling your billing. From initial time tracking to collecting the final payment, everything goes into one single source — including a native law firm payment processor, which means more secure collections for you and your clients. Firms of all sizes use Bill4Time for case management, time tracking, trust accounting, and much more.

You’ve probably seen plenty of threads discussing the best legal billing software on Reddit and other forums — and it’s smart to look at what other attorneys are saying. Once you’ve done your research, the next move is to see how platforms like Bill4Time perform in real life. Start a free Bill4Time trial today, or click below to schedule a demo tailored to your firm. Let us show you how billing software can boost your firm’s operations and be an excellent return on investment.

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What Is the Best Attorney Time and Billing Software?

April 16, 2025 By Allison Lemasters Leave a Comment

The best attorney time and billing software supports the natural rhythm of your practice: accurately tracking hours, sending polished invoices, and getting you paid on time without taking more of your time.

In the practice of law, a few minutes can be the difference between profitability and burnout. Every tool you choose matters, even those that track your work. But the “best” software for your practice doesn’t always mean the most popular or even the one with the most features.

The real question is: which software works the same way you do?

If you’re looking for a solution that’s simple to run and gets the job done, this article is for you. Below, you’ll find tips for finding software that fits how you bill time as an attorney, so you can focus on your practice knowing the essentials are, quite literally, accounted for.

How to Choose the Best Attorney Time and Billing Software for Your Firm

To find an ideal billing software, start by looking at how you keep track of billable hours today.

What kind of billing do you do? (hourly, flat fee, contingency, a hybrid model, etc.)
How many people need access to billing features and data?
Are you frequently out of the office?
How much help would you need with learning new software?

All of these factors are essential for figuring out how to maximize billable hours with software. Let’s look at each of these questions individually and how software should help answer these questions.

What Kind of Billing Do You Do?

Most firms don’t rely on a single billing model. You may bill hourly for litigation, use flat fees for estate planning, or negotiate contingency arrangements for plaintiff-side work. Many practices even mix their approaches based on matter type or client preference.

The billing software you use should handle that complexity without added friction. Whether you’re toggling between fee structures in the same matter or managing hybrid arrangements across multiple attorneys, flexibility is non-negotiable. For example, software like Bill4Time allows for customized billing setups that reflect real practice demands, down to rate changes, matter-specific rules, and detailed audit trails, so your billing adapts as your matters do.

How Many People Need Access To Billing Features and Data?

That number might be more than you expect. Even if you’re the only one sending invoices, billing touches nearly every aspect of your firm. Your paralegals and attorneys log time, your admin staff follows up on payments, your partner reviews reports, maybe you even have a billing specialist… the list goes on.

Effective billing software supports this division of labor without compromising data integrity. Look for platforms that allow granular, role-based access so each user can view or manage only what they need. That kind of structure helps protect sensitive financial data while still keeping your team productive and aligned.

Are You Frequently Out of the Office?

Mobility adds another layer to the timekeeping challenge. If your practice takes you from the courtroom to client sites to depositions in different cities, logging time from your desk isn’t realistic. Writing things down to enter later increases the risk of forgetting the details or misallocating time entirely.

The best providers of legal software also have a mobile app for time tracking, so you can log time in real time. Being able to capture time entries on the spot, switch matters mid-task, or review what’s unbilled while you’re still in motion helps you stay accurate without disrupting your schedule.

How Much Help Would You Need With New Software?

No matter what you choose, software will only be as effective as your knowledge of it — and that comes back to onboarding. Having support staff to help, as well as additional learning resources to access on your own time, ensures you know what the software can do. More importantly, it helps you integrate the software into how you practice, rather than adjusting your practice to match the software.

After you consider the needs of your firm, you next want to figure out which features are the most important to you. You can focus on evaluating these as you test different platforms to avoid feeling overwhelmed.

What Features Set the Best Attorney Billing Software Apart?

The most critical features of billing software include:

Matter-Based Time Entry | You need to link time to the right matter with precision, especially when multiple matters exist for the same client.
Native Payment Processing | Using one system to track time, another to generate invoices, and a third to collect payment is inefficient and risky. When payments run through the same system that generated the bill, reconciliation is simpler and cleaner.
Multiple Timers Option | Your software should let you easily switch between timers without breaking stride.
Editable, Flexible Invoicing | You’ll want to be able to adjust language for clarity, redact internal notes, or break down line items differently for a client with specific preferences.
Invoice Customization | Branded invoices signal professionalism and help set expectations with clients. You should be able to control how your bills look without hiring a designer or fighting a formatting tool.
Insightful Analytics and Reporting | Time and billing reports should help you spot trends, track write-offs, and evaluate staff performance, not just show how many hours you worked.
Batch Invoicing Capabilities | When you’re billing dozens of clients at the end of the month, sending invoices one at a time burns hours you’ll never get back. Your software should let you generate and send multiple invoices in one go.

For billing software, the most important traits overall are accuracy, efficiency, and security. A software that addresses the above factors will help you print accurate invoices the first time, at a much quicker rate, within a much safer framework. If your billing process is simple, clean, and secure, that creates a better experience for you and your clients.

How Should Attorneys Keep Track of Their Time With Billing Software?

Here’s what an ideal day-to-day could look like with the right software to assist your billing:

Start each day with a fresh timer, or view upcoming calendar events and tasks to see what needs to happen first. From there, you can set up different timers for each task.

Your timer runs in the background as you work; at any moment you can pause or switch timers if you change to a new task, keeping each timer linked to the right matter.

Once you finish a task, you can stop the timer and add quick notes about what you did. You can also enter time manually, if you missed logging something earlier in the day.

Speaking of missing things… ever worry about forgetting to invoice for something? Good software will have easy ways for you to see what tasks you haven’t billed for yet.

Once your time entries are approved, they’ll automatically populate the invoice template connected to that matter. From there, you can easily make edits.

Sending the final invoice is as easy as an email or message via the client portal. Then, you can collect payment with that same software, keeping it all in a secure, closed loop.

Make Your Practice Run Smoother With Time and Billing Software

Your billing process is the engine that keeps your practice running. And when your tools are clunky, slow, or hard to collaborate with, that engine sputters and your practice suffers. But with the right software, your firm doesn’t just keep up; it sails smoothly.

At Bill4Time, we understand the rhythm of running a law firm. With us, you can simplify the tedious, automate the repetitive, and get back more time to focus on your clients. Whether you’re a solo attorney or a small team, Bill4Time has the flexibility, transparency, and security to keep your billing as professional as the work behind it. Our software is especially efficient when multiple parties are working on the same cases, making collaboration that much easier.

Ready to run a tighter ship without running yourself ragged? Bill4Time might be the smoothest move you make this year. Sign up for a free trial, or click the button below to set up a free demo customized for your firm.

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How Do Lawyers and Paralegals Keep Track of Their Time?

March 19, 2025 By Nina Lee Leave a Comment

It’s the end of a long day at your firm. Your associate stares at their laptop, trying to piece together how they spent the last ten hours. Court appearances, client calls, research, drafting — what was billable? What wasn’t? Across the office, a paralegal flips through their notes, trying to separate admin work from tasks that can actually be invoiced. It’s a familiar struggle in law firms everywhere.

But here’s the truth: most lawyers and paralegals aren’t guessing anymore. They’re using software.

Legal time tracking software has become the backbone of law firm billing, replacing messy spreadsheets and end-of-day estimations with precise, real-time tracking. Instead of scrambling to remember what they worked on, legal professionals log their time as they go — on their desktops, in mobile apps, or through automated tools that sync with calendars and emails.

And the best legal time tracking software doesn’t just record hours. It categorizes tasks, assigns different billing rates for attorneys and paralegals, and integrates with accounting tools so firms don’t leave money on the table.

In this short guide, we’ll explore the different ways firms are handling time tracking and why using time tracking software has become the best option.

How Do Lawyers Manage Time Tracking?

While most lawyers are using some sort of software, the truth is that time tracking methods vary. Ask twelve lawyers how they track their time, and you’ll probably get a dozen different answers. Some still rely on old-school methods like scribbling hours on a notepad or logging them in a spreadsheet at the end of the day. Others use dictation tools to record their billable activities on the go.

The problem? It’s easy to forget billable tasks, unconsciously round down time, or miscalculate your total hours.

Others rely on Outlook or Google Calendar as a rough record of client meetings and casework — better than nothing, but far from precise. Then there are lawyers who dictate their hours into a voice recorder or send themselves emails throughout the day, hoping to compile everything later. While this approach captures more detail, it still requires someone — whether the attorney or an assistant — to manually enter those hours into the billing system.

The real question is how should lawyers track their time? The answer is simple: technology. The firms that get the most out of their billable hours rely on dedicated time tracking software. Instead of leaving hours up to memory or messy notes, software makes tracking seamless, reducing the risk of lost revenue.

However, there is a key to using time tracking software effectively: using it contemporaneously. It’s best to record time as you work, rather than trying to recall what you did at the end of the day (or worse, the end of the week).

Other features that set time tracking software apart:

Mobile apps – Lawyers aren’t always at their desks. A mobile time tracker allows you to log hours from court, client meetings, or even the airport.
Automatic tracking – Some platforms integrate with calendars, emails, and case management systems to track time spent on client-related activities.
Reminders and prompts – If you forget to log time for a certain activity, software can nudge you to fill in the gaps.
Reporting and analytics – Software provides insights into where time is spent, helping firms optimize billing and identify inefficiencies.

At the end of the day, manual tracking is a hassle. It leads to lost billable time, inaccurate invoicing, and frustrated attorneys trying to piece together their work. Time tracking software removes that burden, making it easier to bill accurately and get paid for every minute of work.

How Do Paralegals Manage Time Tracking?

Paralegals juggle more of a mix of billable and non-billable work, which can make time tracking even trickier for them than it is for attorneys. Unlike lawyers, whose hours are mostly dedicated to client work, paralegals handle everything from drafting documents and conducting research (billable) to administrative tasks like organizing case files and sending invoices (non-billable).

This makes time tracking one of the most important skills for a paralegal. That constant shift between billable and non-billable time makes accurate tracking essential — for transparency, and for helping your firm optimize workload distribution and billing efficiency.

Most law firms rely on a single time tracking system where attorneys, paralegals, and support staff log their hours as separate users. This setup keeps everything in one place, making it easier to review and invoice billable time accurately. Additionally, you’ll want to look for:

Pre-set categories – Quickly distinguish between billable legal work and admin tasks without needing to manually classify each entry.
Role-based billing rates – Automatically apply the correct billing rate for attorneys, paralegals, and other staff to prevent underbilling or overbilling.
Time entry organization – Sort and filter time logs based on client, matter, or task type, so no billable work slips through the cracks.

Without a reliable system in place, firms risk losing revenue from untracked or misclassified time. That’s where software like Bill4Time can help. With Bill4Time’s built-in categorization features, firms can easily separate billable from non-billable work and assign different billing rates to different roles so that every minute is accounted for. Instead of sorting through spreadsheets or manually calculating rates, paralegals and attorneys can enter their time directly into the system, and the software takes care of the rest.

Paralegals play a vital role in legal work, and their contributions — both billable and non-billable — deserve to be accurately documented. With the right software, your firm can track every minute with confidence, making sure that both your lawyers and paralegals get credit for their work.

Do Lawyers Get Paid for Billable Hours?

Not exactly. While clients pay for the hours lawyers bill for their work, that money goes straight to the firm, not the individual attorney. Lawyers typically earn a salary and, in some cases, bonuses for exceeding billable hour targets. The exact structure depends on the firm, but even solo practitioners don’t pocket every dollar they bill.

Where Does the Money Go?

Let’s break it down with a quick example. The average lawyer billing rate in the U.S. varies by state and practice area, but a mid-range estimate is around $300 per hour. If a lawyer bills 1,800 hours a year — a common goal in many firms — that’s $540,000 in revenue for the firm. But that doesn’t mean the lawyer is walking away with half a million dollars.

Here’s why:

Firm Overhead – A large portion of firm revenue goes toward operating costs. Rent, legal research tools, practice management software, staff salaries, employee benefits, insurance, bar dues, marketing, and technology all come out of the firm’s earnings before lawyers see their share. Some firms have high overhead costs, especially in major cities, while others keep expenses lean, but no firm operates without them.

Non-Billable Work – Even though billable hours drive firm revenue, lawyers don’t spend every working hour on billable tasks. Internal meetings, business development, client intake, and administrative work all take time but don’t directly generate income. Since salaries and bonuses are usually based on the firm’s overall profitability — not just an individual lawyer’s billed hours — there’s not always a direct correlation between what a lawyer bills and what they take home.

Profit Margins & Partner Distributions – Like any business, law firms need to turn a profit. After covering overhead, firms allocate revenue to partner distributions, reinvestment in the business, and other financial priorities. Partners — especially equity partners — typically take a percentage of firm profits, which means a portion of the revenue from associate billables goes toward partner compensation.

Most law firm associates receive a fixed salary, sometimes with bonuses tied to hitting high billable hour targets. Solo lawyers, on the other hand, get paid directly from what they bill — but they also have to cover office expenses, malpractice insurance, marketing, and every other cost of running a practice.

What Do Lawyers Spend Most of Their Time Doing?

Billable hours don’t tell the full story of a lawyer’s workload. Attorneys spend a significant portion of their day on case preparation, legal research, client communication, and administrative work — some of which is billable, some of which isn’t. Time tracking software helps firms separate billable from non-billable tasks, making it easier to see how much time is actually bringing in revenue.

At the end of the day, lawyers aren’t directly paid for billable hours — they’re paid based on a mix of salary, performance incentives, and firm profitability. While billable hours drive firm revenue, they don’t translate dollar-for-dollar into an attorney’s paycheck.

Do Paralegals Get Paid for Billable Hours?

Just like lawyers, when clients are billed for the hours paralegals work, that revenue goes to the firm, not straight into the paralegal’s pocket. Paralegals typically earn an hourly wage or a salary, with the firm collecting fees from clients for their billable work.

However, many firms offer bonuses tied to productivity and billable hour goals, providing financial incentives for paralegals to meet or exceed their targets. For example, some firms have tiered bonus structures where paralegals receive increasing bonuses as they surpass specific billable hour thresholds. These bonuses can range from a few thousand dollars to significantly higher amounts, depending on the firm’s policies and the individual’s performance.

How Much Do Paralegals Make?

According to the National Association of Legal Assistants (NALA), the median hourly wage for paralegals and legal assistants in the United States was $24.87 per hour as of 2020. However, it’s important to note that paralegal billing rates in 2025 charged to clients are typically higher to account for overhead and profit margins. For example, some firms bill paralegal time at rates ranging from $50 to $200 per hour and beyond, depending on the complexity of the work and the market rates in their region. The difference between the billing rate and the paralegal’s pay contributes to the firm’s revenue, covering operational costs and profitability.

The Role of Billable Hours in Career Advancement

Firms may use billable hours as a metric for performance evaluations, influencing decisions on raises, promotions, and bonuses. Effective time management and diligent tracking of billable hours are crucial for paralegals who want to advance in their careers and maximize their earnings.

So, while paralegals don’t receive direct payment for each billable hour, their compensation is closely tied to the revenue generated from their work. Understanding your firm’s billing practices and striving to meet billable hour goals can lead to financial rewards and career advancement opportunities.

Bill4Time: The Best Way to Track Time Accurately

Whether you’re a lawyer tracking every minute of client work or a paralegal juggling billable and non-billable tasks, one thing is clear: time tracking software makes a difference. The old ways — handwritten notes, spreadsheets, or relying on memory — lead to lost revenue, inaccurate billing, and extra administrative headaches. That’s why law firms of all sizes turn to Bill4Time to streamline their timekeeping and billing processes.

Bill4Time is built for law firms, making it easy for everyone on the team to log their hours accurately, whether they’re in the office, in court, or working remotely. With role-based billing rates, firms can correctly classify and charge for lawyer and paralegal time without extra manual effort. Some of the features that make Bill4Time the go-to choice for all legal professionals:

Multi-user tracking – Assign different billing rates for lawyers, paralegals, and staff, ensuring accurate invoices.
Contemporaneous time tracking – Log billable hours as you work, so you never forget what you did.
Mobile access – Track time on the go, no matter where you are.
Easy invoicing – Turn billable hours into professional invoices with just a few clicks.

The best way to understand how Bill4Time simplifies time tracking? Try it for yourself. Sign up for a free trial today, or click the button below to schedule a free demo. You can experience firsthand how Bill4Time can help your firm track every billable hour effortlessly, eliminate manual errors, and boost profitability.

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7 Tactful Strategies for Justifying an Attorney Rate Increase to Clients

September 12, 2024 By Allison Lemasters Leave a Comment

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:

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.
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.
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.
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.
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.
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.
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.

What Is the Standard Billing Increment?

July 2, 2024 By Carole Poster Leave a Comment

Most lawyers use 6-minute increments for billing. Why? It’s simple and fair. You don’t lose time or overcharge. Whether you use manual methods or legal time tracking software, tracking billable hours vs. actual hours ensures you charge clients fairly and manage your time effectively.

With a clear outline of the time spent on cases and firm-related activities, you can bill accurately, understand where your time goes, and improve overall productivity. Keep reading to learn more about billable hours, standard billing increments, and how to streamline your firm’s time tracking processes for more efficiency and precision.

What Does It Mean to Bill in 6-Minute Increments?

Billing in 6-minute increments means dividing an hour into ten equal parts, making it easier to track and bill time accurately for shorter tasks. This practice started around the 1920s and became common in the legal industry.

Billing in smaller increments, like billing by the minute, can be time-consuming and hard to track. Larger increments, such as 20 or 30 minutes, make it difficult to bill for quick tasks, like answering a client’s email, and could lead to overcharging.

Six-minute increments offer a good balance. They allow you to bill for short tasks and measure time more precisely. For instance, a client call lasting 17 minutes translates to 0.3 hours. This method helps you keep accurate records and ensures fair billing.

Wondering, “How do I calculate billable hours using this method?” By dividing each hour into ten 6-minute parts, you can track time spent on tasks more precisely. You can see how this works with a billable hours calculator in 6-minute increments. The best option, though, is time tracking software, which automates the calculation for you, ensuring accuracy and saving you time.

Click here to schedule a free demo of time tracking software to see how it works for yourself.

What Does Billing in 15-Minute Increments Mean?

For some law firms, billing in 15-minute increments is a more effective way to track time. This number is still easy to calculate based on an hour, as each task is 0.25 of an hour.

Though 15-minute increments are seen as a compromise between the complexity of 6-minute increments and the ambiguity of 30-minute or 60-minute increments, there are benefits and drawbacks. While there’s a lower administrative burden and more simplicity in tracking time by the quarter-hour, which comes naturally to most people, it lacks the transparency of 6-minute increments. It’s also easier to round up and pad bills unintentionally.

Choosing between them comes down to your typical legal tasks and client expectations. Some clients may prefer a more detailed breakdown of the time spent on their projects, which you can provide with 6-minute increments. However, if you have legal tasks that involve longer periods of case-related work, the simplicity of 15-minute increments may be more effective.

Understanding billing increments helps with better practice management, but how many hours should you aim for annually? Let’s take a look.

How Many Billable Hours Should I Work?

How many billable hours you should work depends on balancing firm objectives, client needs, and your own mental health and well-being. Firms typically target between 1,700 and 2,300 billable hours annually, but this range can vary.

Larger firms in cities like New York, Atlanta, and Miami often require over 2,000 billable hours. Smaller firms, public interest law firms, and those outside urban areas may require fewer billable hours, focusing on employee development, client relationships, and other firm-enhancing activities. These firms might set their targets at 1,500 or 1,600 billable hours per year. Government and public interest firms usually don’t have billable hour requirements as they don’t bill their hours to clients.

How Hard Is It To Hit 2,000 Billable Hours?

Meeting the goal of 2,000 billable hours each year isn’t easy. Many firms set this target, but it requires careful planning and consistent effort. Some ways lawyers get closer to this goal include:

Daily Commitment

First, think about the daily commitment. To hit 2,000 hours a year, you must bill around 8 hours each workday. That doesn’t just mean working 8 hours; you need to bill for 8 hours. Many tasks, like administrative work or internal meetings, can’t be billed. So, you’ll often find yourself working longer days to make up for non-billable time.

Efficient Time Management

Time management plays a big role. You have to be organized and disciplined. Use time tracking software to monitor your hours closely. Break your day into chunks and set specific goals for each period. For instance, you might block off two hours in the morning for drafting a brief and another two hours in the afternoon for client meetings.

Managing Interruptions

Managing interruptions is crucial. Unexpected calls, emails, or meetings can eat into your billable hours. Set boundaries and stick to them. If you have an assistant, let them know when you need uninterrupted time. You can also use email autoresponders to manage client expectations about response times.

Work-Life Balance

Balancing work and personal life becomes challenging. Long hours can lead to burnout. Make sure to take breaks and find time for activities outside of work. Guarding your time in this way will help you stay fresh and focused when you’re at your desk.

Tracking Progress

Regularly tracking your progress is essential. Weekly or monthly reviews can help you see if you’re on track. If you find you’re falling behind, you can adjust your schedule and workload to catch up before you get too far away from your goals.

Regardless of your target, choosing the appropriate billing increment can have a huge impact on your realization rate and productivity. For example, billing in smaller increments can lead to a higher realization rate because it allows for more accurate time tracking and billing, reducing the likelihood of underbilling while improving client satisfaction.

How Do You Capture All Billable Time?

The best way to capture all billable time is by using dedicated time tracking software like Bill4Time. Relying on manual methods, like jotting down hours on paper or using spreadsheets, often leads to missed minutes and billing mistakes. Bill4Time ensures you track every minute accurately, preventing any lost billable hours.

With an intuitive interface and a mobile app, Bill4Time lets you log your hours from the office, court, or anywhere in between. It also includes calendaring, document management, and billing features, so you can run your whole practice from one platform.

For a reliable way to capture all billable time, consider trying Bill4Time. Sign up for a free trial or free demo and explore how Bill4Time can enhance your firm’s efficiency and accuracy.