Tag: practice management

5 Ways Legal Billing Software Increases Law Firm Revenue

In any business, keeping an eye on the bottom line is essential. For law firms, this can be a challenge, as there are many ways that money can be lost throughout a case. From inefficient time-tracking to inaccurate billing, there are many potential pitfalls. However, there is one solution that can help to increase law firm revenue: legal billing software. Choosing the right legal billing software is essential for maximizing its benefits. Consider time-tracking, billing accuracy, and customer service when evaluating different packages. Take a look at solutions built specifically for the legal industry to get the most out of your investment.

3 Common Ways Law Firms Lose Money

Time Tracking Issues

Many lawyers still rely on manual methods of tracking time by using spreadsheets or notepads. This antiquated approach to timekeeping is fraught with problems, including the potential for lost billable time and revenue, vulnerability to billing disputes, and high administrative costs.

With spreadsheet or notepad timekeeping, it is easy for lawyers to forget to record their time or lose track of their records, leading to lost billable hours and ultimately lost revenue for the firm. Manual timekeeping doubles the work since someone must manually enter all data into the system.

Manually keeping track of time leaves attorneys vulnerable to billing disputes. If a client questions a lawyer’s billing records, it can be difficult for the attorney to prove that the charges are accurate without detailed and meticulous records.

Invoicing Frequency

When it comes to law firm revenue, timely billing is everything. The longer you wait to send a bill, the longer you wait to get paid. Clients can’t pay a bill they haven’t received.

Not billing promptly sends the message to your client that prompt payment is not that important to you. Sending your invoices at the end of each month helps to avoid confusion or miscommunication and ensures that you and your clients are on the same page.

Billing Bottlenecks

Getting paid by clients is a significant problem for 61% of small law firms, according to 2019 research conducted by Thomson Reuters Legal Executive Institute. Law firms that don’t provide clients with various payment options, like online payments and accepting credit card payments, are more vulnerable to decreased law firm revenue due to not getting paid on time.

What is Legal Billing Software?

Legal billing software is downloadable or cloud-based that helps lawyers accurately track their time and invoice their clients. A robust software, like Bill4Time, will have the capability to track time, LEDES billing format, create custom invoices, accept online payments, and meet state bar regulations for billing. Law firms use dedicated legal billing software to improve their bottom line by improving invoicing processes and reducing inaccurate time management and billing bottlenecks.

What Billing Software do Law Firms Use?

Lawyers are always looking for ways to be more efficient and maximize their billable hours, so they prioritize cloud-based software solutions that have integrated time tracking, easy invoice options, and a client portal for online payments.

Law firms need industry-specific features like trust & IOLTA accounting which allows lawyers to reconcile trust accounts without a secondary application. They also look for software that provides LEDES billing, the most widely used e-billing standard for law firms invoicing corporate clients.

Why Does My Law Firm Need Legal Billing Software?

As a law firm, you know that time is money. Every minute spent on administrative tasks is a minute that could be spent on billable hours.

Automate the billing process

You, and your team, enter matter information as time-tracked once, and the software will take care of the rest, generating invoices and sending them out to clients on your behalf.

Manage your cash flow

You will always have a clear record of what has been billed and remains outstanding. You can responsibly allocate your resources to maximize your profits.

Track payments and expenses

Having this information organized and readily available can save you a great deal of time and hassle when it comes time to file taxes or apply for loans or lines of credit.

Billing automation will save you and your team considerable time each month, which can be spent growing your business.

How to Identify the Best Legal Billing Software

When choosing legal billing software, there are a few key factors to keep in mind.

Choosing a program compatible with your firm’s existing tech stack, including your law practice management software, is critical to success. Consider the cost, ease of use, and customer support options. Mobile access is also crucial for lawyers who can access their files on any device — iPhone, iPad, or Android.

And finally, security is always a top priority when it comes to sensitive legal information. Look for software that has industry-standard security protocols in place to protect your data.

By keeping these factors in mind, you’ll choose the best legal billing software for your needs.

Best Practices for Implementing a Legal Billing Software

There are many different types of legal billing software on the market, and it can be challenging to decide which one is right for your law firm.

When choosing new software for your law firm, there are a few important factors to remember:

  • You must ensure that the software is compatible with your existing legal practice management software.

  • Be sure to clearly understand your law firm’s billing policies before setting up the software to ensure everything is billed correctly.

  • The software should be easy to use, but you still need to take time to train your staff on how to use the new software.

  • You want a responsive and helpful company when you run into problems. If you run into issues, you can contact the support team.

A little upfront investment will pay off in the long run by preventing billing mistakes and increasing efficiency. Following these simple tips, you can set your law firm up for success with legal billing software.

Increase Law Firm Revenue with Legal Billing Software

Ultimately, you can improve your firm’s bottom line and the client experience by investing in legal billing software. Here are five ways a legal billing software can help you achieve success:

1 ) Accurate Time Tracking

Time entry and expense tracking are crucial for any organization looking to boost productivity and improve profitability. Yet many organizations struggle with manually tracking time and expenses, leading to inaccuracies and lost data. The software makes tracking time and expenses by the user, client, or project easy.

Move beyond the notepad, and start tracking your time with a cloud-based software solution.

Whether on the go or at the office, easy time entry makes it simple to run timers simultaneously, record multiple time entries on one screen, and automatically convert appointments into time entries. You’ll always know your organization’s productivity and financial status with daily and weekly time summaries.

2 ) Automated Billing

Automated billing and online payments can make it easier for clients to pay their invoices, resulting in quicker payment turnaround times. Clients tend to delay payment if they don’t understand the invoice. Prevent this from happening by providing detailed and informative invoices.

With legal billing software, you can set up invoice templates with custom settings such as your billing policy and payment links to pay online —  you can even perform batch invoice creation to save administrative time.

You can even extend your brand while increasing workflow efficiencies by personalizing and creating branded invoices with your logo.

3 ) Online Payments

Online payments are becoming increasingly popular, and customers expect businesses to offer this option. You may even miss out on potential customers if you don’t offer online payments.

Online payments allow firms to quickly and easily receive payments from clients. This can be done via credit card, debit card, or even PayPal. In addition, online payments are more secure than traditional methods, such as mailing a check.

4 ) Custom Reporting

Real-time data is essential for any growing business and managing cash flow. You’ll want a solution with comprehensive reporting to manage your firm’s financial performance better and identify trends to ensure success—review payment history, balance due, collections, expenses, productivity, and summary reports.

Legal billing software should be able to run user activity reports, so you can get detailed insights into how your team works, including efficiency, expense, schedule, and internal tracked time.  This data can help you identify areas of improvement so your team can work smarter, not harder.

5 ) Enhanced Client Experience

Client portals are a great way to provide your clients with more information and control over their billing. Empower your clients to log in, view their account balances, make payments, and see a detailed fee history.

Grow Your Law Firm Revenue with Legal Billing Software

The legal industry is one of the most competitive and rapidly-changing fields. To succeed, law firms must be cutting edge in all aspects of their business – including billing. With so much at stake, it’s no wonder that more and more law firms are turning to legal billing software to help them stay ahead of the competition.

This article was authored by Dan Bowman of Bill4Time.

For more business of law legal news, click here to visit the National Law Review.

©2006-2022, BILL4TIME. ALL RIGHTS RESERVED.

“Presents” of Mind for the Holidays: Six Q&As on Sensible Workplace Gift Giving

‘Tis the season of generosity, random acts of kindness, and selfless gifts. But not all gifts are well received—or positively perceived. In the employment law context, where compliance and best practice remain the watchwords, presents exchanged by colleagues, however well-intentioned, must still pass muster under law and corporate policy. Below are answers to several questions addressing the appropriateness of workplace gifts given during this time of year.

Q: Are there any employment law concerns about gifts given around the holidays—such as gifts with potentially romantic overtones, such as flowers, perfume, or perhaps an invitation to a one-on-one carriage ride—that may give rise to subsequent claims of sexual harassment? Or are such presents innocuous in the holiday season?

A: The nature of the holiday doesn’t change the nature of the gift exchanged between workers (regardless of managerial or non-managerial level). If an item is one that could lead to questions regarding the sender’s motivation (e.g., a veiled romantic overture), it should be avoided. Failing to do so could create misimpressions as to a sender’s true motive or could lead to the perception of favoritism or inappropriate sexual advances.

Q: Managers sometimes are told not to accept gifts from subordinates. Why might accepting presents from subordinates be imprudent? And how might managers tactfully turn down presents from subordinates?

A: Allowing gifts from subordinates may create the false impression that gift-givers are treated differently than non-gift-givers. It also may allow tacit competition concerning who can give the best, most expensive, or most thoughtful gift, and lead to morale problems or discomfort among employees. A considerate way to turn down a gift from a subordinate is to make it known, graciously but unequivocally, prior to the holidays, that gifts will not be accepted. If such a statement seems Scrooge-like, suggesting that an anonymous donation to a charity would be acceptable (rather than a tangible gift to the supervisor) could be an appropriate alternative.

Q: Are there are any issues with employees giving each other religious presents at this time of year? (It is, after all, a religious time of year for many.) In the workplace, might that be problematic? What limits on presents between coworkers might be warranted?

A: Religious gifts should generally be avoided, both at holidays and at other work times. Such gifts could create the impression that one particular religion is more acceptable than others to the gift-giver, and could lead to discomfort in the workplace on that issue.

Other limits on gift giving in the workplace (besides the “romantic” gifts and the religious gifts mentioned previously) could be related to gag gifts concerning protected characteristics—for instance, “over-the-hill” or other age-related gifts or cards, or items that derogate a physical or mental disability. Such gifts could lead inadvertently to claims of discrimination or inappropriate workplace actions.

Q: What about bosses giving presents or holiday cards to employees? Are there any risks with this?

A: This is simply the inverse of the question regarding managers accepting or refusing gifts, and it raises similar issues. Unless a boss is giving a neutral gift (e.g., a one-pound bag of coffee, local history book, or non-religious seasonal card) to every employee, selective gift giving may occasion claims of preferential treatment, discrimination, and/or workplace harassment.

Q: Are limits on gift giving likely to be perceived as not in the holiday spirit? How can an employer enforce these limits without seeming unfestive?

A: While limits on gift giving could be perceived as “not in the holiday spirit,” the risk avoidance element is more critical to employers. There’s often a fine line between limiting the fun associated with the holidays and creating an atmosphere that could encourage inappropriate behavior. The solution is clear, thoughtful communication. It’s OK to tell employees that there’s a limit on gift giving, and that part of the reason is so that no one feels left out or unable to keep up with the level of gifts exchanged. Setting a reasonable limit—either in value or in substance—could allow employees to understand that the employer is doing this thoughtfully, with the best interests of the employees in mind.

Q: What might be some elements of a company gift policy, both during the holidays and at other times of year?

A: A company-wide gift policy, assuming that the employer is not already limited by regulations or laws, would depend upon the nature of the company or work group, the size of the business, and the holiday being celebrated (i.e., is it a religious holiday or, say, an employee’s birthday?). Policies may also address gifts from outside sources, including contractors, customers, lobbyists, and others. Clear rules supported by language explaining the general rationale for the policy can help employees fully understand the restrictions being imposed.

 

© 2019, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved.
The author of this article was previously quoted on this topic on SHRM Online.
For more on company policies around the holidays, see the National Law Review Labor & Employment law page.

10 Practice Management Challenges for Mid-Size Law Firms

10 black and whiteOn those rare occasions when I am not optimistic about the prospects of mid-size law firms, I am very pessimistic. Oh yes, mid-size firms are the best setting for practicing law. And many of the current challenges to the legal profession play to mid-size firms’ strengths. And some legal subject areas are positively booming. But except for that, things look daunting.

So this title to a recent Dr. George Beaton blog post – “10 reasons BigLaw managing partners are not sleeping very well” – braced me for a jolt. Challenges to BigLaw most often are not so different from the challenges to MidLaw.

But then I examined Beaton’s 10 reasons. One by one, I liked MidLaw’s chances.

1. Client power.  Large corporations now have alternatives to hiring law firms. They can bring work in-house, or use alternative legal services providers, or exercise their formidable bargaining power for large engagements. Those are challenges that must vex the large law firms. MidLaw on the other hand, can appeal both to the largest clients and also to smaller clients. They can be closely engaged with clients in the management of their legal function. And, if a law firm is not fixated on having every bit of a client’s work, mid-size firms and their clients can find the balance where legal services are rationally allocated among alternatives, and law firms are sized and structured to do the work they are best suited to do (which is not all of it).

2. New competitors.  Alternative legal services providers are taking work that law firms once did. Good! New, alternative providers have found opportunities because law firms were doing work that they were not best suited for. Now, alternative providers are taking the routine, repeatable work. They are making the big investments in technology. Mid-size firms need not staff up or make the investments needed to provide those services. This is an opportunity. Stay smaller, learn to work with (and, to use) the alternative providers, to focus on what lawyers do best, and to build the kinds of firms and professional cultures around the smaller bases that this makes possible.

3. Big Four accounting firms taking legal work.  It was never about occupational licenses. From MidLaw’s perspective, what’s the difference between BigLaw and BigFour? There is also competition from smaller accounting firms, but the point’s the same. What’s the difference between competition from other law firms and competition from accounting firms? Accounting firms (all sizes) remain great sources of referrals for MidLaw firms. Monitor those referrals. They are a good indicator of where your sweet spot may be. If you elect to compete for the same work accounting firms do, then understand how you can do that work better-cheaper-faster than the competition.

4. Technology is a challenge for everyone.  Mid-size firms may be better positioned to navigate new technology than others. The place between the largest firms and the smallest looks like a good place to be. Mid-size firms are the most attractive marketing niche for many technology providers who are designing products to suit. Be nimble.

5. Firm brands are becoming more important than individual lawyer brands.  Beaton says this is inexorable. I’d say the pace is still gradual. Beaton says,

This trend is being driven by the interactions of clients’ buying patterns, technology, globalisation, and talent. Building a distinctive brand is more about culture and discipline than anything else. Custom and practice legacies and inertia are the enemies of brand-building.

These are good insights. Mid-size firms are well suited to nurture distinctive cultures, but they are deathly subject to “practice legacies and inertia.” And then there is “discipline.” Be intentional about who you are.

6. Globalization.  Twenty-five years ago, what was called “international law” was the almost-exclusive domain of large firms in large U.S. cities. That has changed as technology, global commerce and cross-border legal practice have evolved. Various forms of networking rival the advantages (without the formidable disadvantages) of multinational law firms. Globalization is now a MidLaw opportunity. Reach for it.

7. Attracting and holding talent.  Here is the greatest advantage of mid-sized firms: they are (can be, anyway) more fun. Beaton outlines the challenges for BigLaw (“the universal allure of life-time partnership in a BigLaw firm is no more”). The challenges Beaton identifies are also challenges for mid-size firms. But mid-size firms look better suited to meet them. Mid-size firms are better able to forge personal and professional connections among their members. Be intentional about it.

8. Change management.  Beaton says the ability to change is now mission-critical for law firms. You bet. Change will be a challenge from now on – everywhere, for everyone, in every endeavor, at all times. And there is quite a lot of change facing legal services organizations just now. Law firms have held it back for so long, but not any more. Mid-size firms, as smaller organizations, have the possibility of greater agility. But they can also fail much more tidily and efficiently than larger firms. Not every mid-size firm is agile.

9. Partnership structure.  The partnership form clearly does not suit large national and multi-national  law firms. Partnership impedes change and capital formation in organizations composed of large numbers of professionals who do not know and cannot trust each other. For mid-size firms though, partnership can still animate culture. Partnership still looks like the natural structure for professional services colleagues in non-hierarchical organizations that are bound by ties of personal loyalty. But continuing and increasing attention to nurturing connections among members is critical; and capital is more and more an issue, even for smaller firms.

10. Equity management.  Equity management encompasses: remuneration, risk management, right-sizing, binding members to the firm, and the possibility of building capital values for partners and perhaps outside investors. These are issues for mid-size firms as well as the great big ones, albeit in different ways.

This is a good set of law firm management issues to target. Dr. Beaton’s observations about their applications to large law firms are posted at his blog together with links to other materials, issue by issue.

Article By Edward C. Winslow III of Brooks, Pierce, McLendon, Humphrey & Leonard, LLP
Copyright © 2015, Brooks, Pierce, McLendon, Humphrey & Leonard LLP

One week until the LMA P3 Conference, June 12-13 in Chicago

The National Law Review is pleased to bring you information about the LMA P3 Conference to be held in Chicago June 12-13, 2014.

LMA_P3_WB250x250_Frame2

 

When

Thursday – Friday, June 12-13, 2014

Where

Hyatt Chicago Magnificent Mile
633 N. Saint Clair St.
Chicago, IL 60611

Dig deeper into project management, pricing and process improvement.

The 2013 LMA P3 Conference set the bar high with fantastic breakout sessions, partner presentations and networking opportunities, but this year’s conference looks even more promising.

Join us for P3 – The Practice Innovation Conference, where pricing, project management, and practice innovation experts will discuss the use of various tactics to explore solutions to real issues face by law firms today.

This execution-focused conference will have attendees roll up their sleeves and collectively work out solutions. Click here to view the full conference schedule.

There is still time to register! Register now!

2 more weeks until LMA P3 – Practice Innovation Conference, June 12-13, Chicago, IL

The National Law Review is pleased to bring you information about the LMA P3 Conference to be held in Chicago June 12-13, 2014.

LMA_P3_WB250x250_Frame2

 

When

Thursday – Friday, June 12-13, 2014

Where

Hyatt Chicago Magnificent Mile
633 N. Saint Clair St.
Chicago, IL 60611

Dig deeper into project management, pricing and process improvement.

The 2013 LMA P3 Conference set the bar high with fantastic breakout sessions, partner presentations and networking opportunities, but this year’s conference looks even more promising.

Join us for P3 – The Practice Innovation Conference, where pricing, project management, and practice innovation experts will discuss the use of various tactics to explore solutions to real issues face by law firms today.

This execution-focused conference will have attendees roll up their sleeves and collectively work out solutions. Click here to view the full conference schedule.

There is still time to register! Register now!