time tracking for lawyers

Legal time tracking software is typically how lawyers calculate their billable hours and keep track of everything. According to the American Bar Association, nearly 9 out of 10 firms were already using time tracking software by 2021, and for multiple reasons. The complex nature of time tracking requires methods that keep lawyers organized and accurate — two goals time tracking software helps facilitate. 

This software can be, for an attorney, like a “billable hours calculator” that works based on start-and-stop timers and custom hourly rates. This reduces potential errors and speeds up the billing process, as you track time in the same software that generates your invoices.

Finding the best legal time tracking software for your firm can make a world of difference in your efficiency, whether you’re a solo practitioner or running a large corporate practice. But with a ton of options on the market, it’s helpful to know what you’re looking for. Read on to learn more about effectively tracking time and how exactly time tracking software can work for your firm. 

How to Keep Track of Billable Hours Effectively

Generally, there are two ways you can track time: manually and digitally. Let’s examine both.

Manual Tracking

Various methods of tracking by hand have emerged over the history of practicing law, all of which have their own pros and cons. Some of the most common methods include:

• Real-Time | Writing down time spent on tasks as they occur — for example, spending a half-hour answering a client’s email and then immediately writing down the time spent.

• Intervals | Rather than tracking things as they happen, attorneys may opt to do all of their tracking in regular intervals, typically daily or even weekly.

• Delegated | An attorney passes their entries to a paralegal or assistant, who enters the times into the firm’s tracking system of choice (e.g., spreadsheets, paper charts)

• Calendaring | Many attorneys will simply reference their calendars to calculate billable hours. Events, emails, meetings, and court dates are reference points for this method.

Manual tracking methods like the ones above come with several pros: they’re simple, easy to understand, and follow some sort of consistent timing that easily slots them into a routine. Essentially, they are a “quick and dirty” way to get a close estimate of billable hours.

Unfortunately, manual methods are often subject to human error — through flawed arithmetic, mistakes while entering data, or simply not being exact enough. 

Sometimes, simply forgetting to bill for certain tasks can happen as well. Even the best attorneys with the sharpest memories might forget to bill for tasks, especially if there is a gap of time between completing tasks and recording them. Recent studies show that the Ebbinghaus Forgetting Curve theory still rings true today, which more or less means if you don’t write something down right away, you’re very likely to lose it!

Digital Tracking

While manual methods have been around for decades, software built specifically for tracking billable hours has become the preferred choice for many attorneys. Unlike spreadsheets, which were adapted for timekeeping but not designed for it, legal time tracking software allows lawyers to log their hours as they work, apply custom billing rates, and generate invoices with ease.

A recent TechReport by the American Bar Association highlighted a growing reliance on digital time tracking across the legal field:

• Roughly two-thirds (66%) of firms use time tracking software.
• Nearly 85% of lawyers reported personally using remote-access software.
• Seven out of 10 firms are using cloud-based software in their operations.

Additionally, there is a clear trend towards using digital tracking in favor of manual tracking, especially via cloud-based software. Solo lawyers, for example, nearly tripled their usage rate from the previous year.

Ultimately, while manual tracking methods have improved over the years, digital methods are quickly becoming the norm for practicing attorneys. Time tracking software is far easier to do in real time — regardless of where you are — which gives you an easy, efficient way to record your time right after completing a task. 

Is There a Tool to Track Billable Hours for Different Practice Areas?

A high-quality legal time tracking software will have multiple ways to account for different practice areas. Some features that work great for unique situations in various practice areas include the following:

Customizable Billing Structures

Every practice area has its own way of handling fees. A family law attorney working on a divorce case might bill by the hour, while a personal injury lawyer works on contingency. Some firms also use blended billing, charging different rates for partners, associates, and paralegals. Good legal time tracking software can (and should) provide settings that accommodate any billing structure you use. 

Mobile Access

If you’re in a practice area that takes you away from the office often, it’s great to have a way to record billable hours while you’re on the move. The best time tracking software will come with a mobile time and billing app that you can run on any smart device, so you don’t miss a minute of work you put in.

Detailed Reporting

No matter how a firm bills, reporting features provide valuable insights into time management, case progress, and profitability. Running reports on pending invoices, total hours worked per case, or time spent on specific tasks can help firms identify inefficiencies and adjust workloads accordingly.

For firms that bill hourly, reports can highlight unbilled time and compare billable targets to actual hours worked. Those handling flat-fee matters can track how much time is spent on each case type to assess whether their pricing is truly profitable. Contingency firms can analyze case timelines to better estimate how long similar cases will take in the future.

Auto-Text Abbreviations

Clear and consistent billing makes invoices easier for clients to understand and reduces the chances of disputes. Auto-text shortcuts help attorneys in any practice area log time faster by filling in commonly used descriptions with just a few keystrokes. Instead of typing out “Reviewed and responded to client email regarding…” every time, an attorney can use a preset abbreviation, like “RR,” to generate the first part of the entry instantly. Over time, these small efficiencies add up, making billing faster and more accurate across the board.

As a final note, time tracking software works best when it’s part of a complete legal practice management software. This cuts down on the amount of software you need to manage your billing and invoicing process, making the entire process simpler and more accurate.

What Is the Tool for Tracking Billable Hours for Free?

Truthfully, there aren’t any free tools that track billable hours — at least, not any that were designed for it. You could possibly try using free tools like Google Sheets or other open-source platforms, but ultimately, they won’t have enough function to be worth your time (literally).

Quality time tracking software costs money because it’s maintained by service providers who not only keep your data secure but also help you maximize the software’s potential. Even if there is time tracking software that’s free to use, you should proceed with caution. Some providers try to lure you in with a “freemium” option, which sounds like a good idea until you see why it’s free.

Free-to-use time tracking software typically is lacking in one or more areas: security, function, usability, customer support, you name it. And if it is usable, it will likely come with heavy restrictions designed to frustrate you into purchasing the full, paid version. So, really, it’s just a ploy to hook you in and get you to spend money.

Using time tracking software should create processes that are better than doing it by hand, “better” meaning faster, more efficient, more accurate, and ultimately more profitable. Free software is free for a reason, and paying for software is not a downside; in fact, with the right time tracking software, you can capture more billable time, reduce errors, and spend less time on administrative work — ultimately increasing revenue.

What Percentage of Lawyers’ Hours Are Billable with Software vs. Without?

On average, about a third of the hours lawyers work (30%) qualify as billable hours. This may seem like a small number if you’re not an attorney, but lawyers know firsthand how much time they spend on non-billable work, from business development to tedious admin tasks. Thankfully, there is a way lawyers can improve that percentage right away: by using time tracking software.

Time tracking software makes tracking billable hours easier, quicker, and more efficient. It also leads to a far more accurate representation of your day-to-day workflow as an attorney. Tracking in real-time helps reduce forgotten entries, and small increments of work are easier to capture; even a quick email to a client that takes five minutes can quickly be recorded. Plus, with software formulas calculating the final invoice based on your hourly rates, there is much less room for error.

Using time tracking software also saves you time on billing and invoicing. You can set up automated workflows for the most repetitive, rote tasks that go into your job — for example, the steps you go through for client intake, or the different workflows for different types of cases. With less time spent on repetitive work, you can spend more time connecting with your clients. And with a written record of the tasks you accomplish for each case, it’s much easier to make sure you didn’t miss anything when you’re drafting the invoice.

Bill4Time: The Ultimate Attorney Billing Cheat Sheet 

Are you tired of manually adding up billable hours in a spreadsheet, asking yourself, “How many billable hours is 45 minutes?” yet again? If so, maybe it’s time for Bill4Time to help you out. This software is the most efficient way to track billable hours, especially because time tracking is only one part of Bill4Time’s complete practice management solution. You can capture your entire workflow in one place, eliminating several points of transferring data and cutting down on potential billing errors.

We welcome you to try Bill4Time yourself and see how much it can help your practice. Sign up for a free trial today, or click the button below to schedule a free demo. We look forward to helping you save effort, time, and money in your practice!

How do you keep track of your billable hours? Many lawyers have switched from paper to software, and some have even found time tracking software specifically tailored to the practice of law. 

Legal time tracking software is becoming all but essential for today’s attorneys. This is especially true when it comes to billing practices, where many lawyers mistakenly leave money on the table. Even back in 2019, the American Bar Association was citing timekeeping and invoicing as the top two reasons lawyers lose money, and these tasks aren’t getting any easier. How lawyers track their time is often a difference maker for running quick, accurate billing processes that clients can trust.

For any attorney, time tracking software plays a critical role in their success — and choosing the right software matters. But what is the best time keeping app for lawyers to use, and why does it matter which software you pick? And why not just stick with a desk timer? A lawyer’s job is already complicated; won’t software just make it more complicated?

Time tracking software today is not just a digital version of what lawyers did in the past; it’s a virtual assistant that supports the entire billing process, all the way to accepting the client’s last payment. Below, you’ll find more information about what this software does and what features make up the best legal time tracking software for lawyers.

How Do Attorneys Keep Track of Billable Hours Using Software?

Attorneys using time-tracking software start and stop digital timers for each billable task, with the software automatically recording the time and linking it to the appropriate client or matter. You can also present hourly rates for tasks, allowing the software to categorize billable hours by attorney, case, or other criteria. Switching between tasks is easy as well, as you can pause and resume timers throughout the day, reflecting the realities of a lawyer’s multitasking workflow.

Software like Bill4Time greatly simplifies the repetitive, rote steps of the billing process, particularly when creating invoices. For example, the software automatically translates minutes into decimal increments — like making 9 minutes a 0.2 of an hour — so you don’t have to convert the time to decimals manually. 

It also lets you use shortcuts like auto-text, where you set up shortcuts for commonly used phrases. For instance, you could set up ‘disc’ to expand it into ‘Drafted and reviewed discovery responses,’ making it easier to record detailed descriptions without retyping the same phrases repeatedly. Auto-text also encourages continuity in phrasing across your firm’s invoices, making billing descriptions uniform and professional.

What To Look for in Time Tracking Software for Law Firms

Time tracking software should be more than a glorified stopwatch. At its best, this software acts as a support system for your entire billing process. And the most important features for doing that come back to three concepts: security, flexibility, and organization. The best software for time tracking, then, will embody all three of these qualities. 

Here are a few common features of high-quality time tracking software that adhere to these qualities:

• Encrypted data storage for confidentiality and compliance with legal standards
• The ability to assign different hourly rates based on the user, client, or matter
• Easy ways to manually edit your past recorded entries
• Options to pause and resume timers for accurate tracking during interruptions
• Built-in tools to generate customizable reports, offering insights into time allocation
• Design fit specifically for use in law firms — for example, LEDES or UTBMS formatting
• Separate tracking for billable and non-billable tasks to give insights into firm operations
• Seamless integration into your billing system for easy invoicing and accepting payment

How Should Lawyers Keep Track of Their Hours Out of the Office?

The best way for lawyers to track their hours out of the office is by using legal time tracking software with a corresponding mobile app. A mobile app ensures that everything you log while on the go syncs with your primary system, so you can pick up right where you left off when you return to your desktop or laptop. This approach eliminates the hassle of manually transferring notes or reconstructing your workday later.

A good mobile app lets you start, stop, and pause timers for specific tasks directly from your phone. For example, if you’re attending an off-site client meeting, you can start a timer as soon as you walk in and stop it when the meeting concludes. Once you’re back at your desk, that entry will already appear in your time log, along with any notes or details you added at the time. 

Offline functionality is another feature to consider. In some situations, like visiting a client in a remote area or working in a courtroom with poor cell service, you may not have internet access. A mobile app that works offline lets you log your time and then sync your entries when you reconnect.

Having mobile access to your time records is also wonderful for fostering healthy timekeeping habits. Poor timekeeping habits, such as waiting until the end of the day/week to record billable hours all at once, can cost you as much as 50% of your billable time through guesstimating and forgetting individual tasks you worked on. When you can enter your time right away on a mobile device, you’re more likely to capture all of your billable time accurately.

What Is the Best Invoicing Software for Law Firms Specifically?

While there are a lot of options for time tracking software, most of them don’t cater to the complex nature of billing for a law firm. Legal-specific software must not only account for varying rates but comply with strict ethics and formatting processes. Ideally, the software should also be connected to a firm’s billing and invoicing system, minimizing the steps needed to go from a timesheet to a finished invoice.

Eliminating manual data entry is one of the most important parts of using time tracking software. Rather than transferring data from software to software (or worse, paper to software), it’s best to have an all-in-one, enclosed system for billing. Not only does this save time, it makes for a more secure and accurate billing process.

In addition to the things above, other key features that make for the best software include:

• Invoice templates: Pre-set designs make creating invoices faster, so you don’t have to start from scratch every time. You can even customize them to fit your firm’s brand.
• Client communication portals: These give clients a place to log in, check their bills, and send payments without needing to go back and forth over email or the phone.
• Native e-payment processor: Clients can pay you right through the system, whether they prefer a credit card or an ACH transfer. No extra tools needed.
• Batch invoicing capabilities: If you’re billing multiple clients at once, this feature helps you send out all the invoices in one go instead of doing them one by one.
• Automatic payment reminders: These alerts nudge clients to pay overdue invoices, so you don’t have to spend extra time chasing payments.

How Much Does Legal Time Tracking Software Cost?

Prices for legal time tracking software generally range from $30 to hundreds of dollars per month / per user, depending on the provider. Each software has its own set of features and benefits, so you’ll need to do some comparing and contrasting to find what’s best for you. Keep in mind that price is not necessarily an indicator of function or quality; the best software is not necessarily the most expensive one, and vice versa. That said, you should avoid any free or freemium options — the best legal time tracking software will not be free.

Most legal time tracking software providers will have a tiered subscription plan, with each higher tier providing access to more and more features of the software. For example, Bill4Time offers four tiers of pricing plans depending on user needs.

To illustrate, a solo attorney might prefer a plan that covers basics like tracking hours and creating invoices, while a midsize firm might need additional features like customizable fields or advanced reporting. Larger firms might prioritize options for batch invoicing or compliance-friendly billing formats like LEDES. The best plan will always depend on the size of your practice and the specific tools you rely on daily.

What Is the Best Free Legal Time Tracking Software?

Unfortunately, a free time tracking app for lawyers is almost certainly not going to be worth your time or effort to use. Attorney time tracking requires high-functioning software that’s secure, well-designed, and tailored specifically to the needs of the legal industry. And no software is going to provide any of these traits for free, much less all three of them. They certainly won’t provide much in the way of customer support (if at all), which is more or less critical to ensure you make the most of using the software.

Even if free software does offer some use for attorneys, it’s most likely going to be a “freemium” version of the provider’s software, which is typically designed to frustrate you into paying for the software. The freemium version will limit your usage — either by blocking essential features, limiting data storage, or removing security measures that are required to maintain compliance. Many free options will ultimately require pairing with other software to make them work at all, which defeats the purpose of not paying for software in the first place.

You should expect to pay for legal time tracking software. But you should also expect to make that money back, and much more, in the time and effort you save for your billing process. Paying for this software is not an expense, but an investment — one that’s well worth making if you want to run a successful, efficient, ethical practice.

Practice More And Manage Less With Bill4Time

An efficient, streamlined process for billing can make all the difference in running a successful practice — and with the right software, that’s more than achievable. 

Bill4Time not only offers the best in time tracking but also a complete practice management solution. Keeping your billing and case management in one system means your time entries and case details are always connected, making it much easier to create accurate invoices. There’s no need to transfer data between programs, which reduces the chances of mistakes and saves time. And thanks to Bill4Time’s native payment processor, collecting payments can be just as easy and secure, for both you and your clients.

Ready to spend less time billing and more time practicing law? Check out Bill4Time today with a free trial, or click the button below to schedule a free demo. Once you see how Bill4Time works, you’re going to want it in your firm — and we’ll be there to help every step of the way!