Every managing attorney and legal practice manager knows that billing is an integral part of any law firm’s operations.
However, thanks to challenges like high volume, complex fee structures, outdated software and even a firm’s time tracking process, it’s not uncommon for billing accuracy to become problematic.
This can result in lost revenue and dissatisfied clients.
The solution? Find ways to create simple and easy legal billing solutions that can be seamlessly implemented into your law firm’s daily operations.
Key Takeaways
- In today’s competitive legal industry, it’s important that law firms find ways to increase their billing accuracy and decrease the amount of time they spend in doing so.
- Because of the complex nature of legal billing, it can be challenging for attorneys and their practice managers to ensure that their legal billing process is as effective as it could be.
- Having the right legal billing software will equate to easy legal billing practices that will increase your profits and your staff and client’s satisfaction.
According to the American Bar Association’s 2020 TechReport, 30% of all responding lawyers and law firms reported that their firm had experienced billing inaccuracies or omissions in the past year.
Additionally, the report went on to state that over 40% of respondents cited “managing the billing process” as a significant challenge in their law practice.
As the practice of law continues to evolve, legal professionals need to find ways to make it easier than ever to accurately bill their clients. From saving time, reducing errors and improving client satisfaction, streamlining and simplifying your legal billing process is going to only result in good things for your firm.
Legal Billing 101: The Fundamentals for Every Law Firm
Legal billing can sound like a broad term, so defining it is a good place to start.
For most small and mid-sized law firms, the term “legal billing” refers to the process of tracking and invoicing clients for legal services provided by a law firm.
It involves recording the time spent on different tasks, such as drafting documents, conducting research, communicating with clients, attending meetings, and associating each task with the appropriate client matter or case.
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LeanLaw’s trust accounting engine tracks trust and operating accounts based on industry and state bar compliance standards.
Identification
Assign trust and bank accounts for each client trust to track incoming and outgoing funds.
Separation
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Accounting
Create client ledgers and maintain appropriate bookkeeping of account balances with LeanLaw’s automated trust reports.
Once the billing information is gathered, it is used to generate invoices that are sent to clients for payment.
Accurate and timely billing can be challenging but is crucial to the financial success of a law firm. Accurate billing ensures that a firm is paid for the services it provides and that clients receive clear and transparent invoices.
Why is it Not Always Easy to Implement Effective Legal Billing?
We know that good and effective legal billing practices are going to make a huge difference in your law firm’s reputation and long term success.
But putting the best legal billing practices into place may sometimes be a bit more challenging than you think.
Why is this the case?
1. The complex nature of legal billing:
For some firms, implementing the most effective legal billing practices may be difficult due to the unique nature of legal billing, as it tends to be substantially more complex that other types of billing for a similar sized small or mid size business.
2. Lack of Training:
Another reason that effective legal billing practices may be sometimes less lacking in a law firm is that many attorneys are not trained in business or financial management.
Not only that, but often other legal professionals and administrative staff are not up to speed on the intricate details needed to understand how legal billing is different than other types of accounting for a small or mid size business.
3. Lack of Modern Software:
Any law firm that is not using the most modern and up-to-date software to assist in their legal billing chart and workflow is missing out on an easy legal billing opportunity.
But implementing certain types of new billing practices and technologies can be disruptive and time-consuming (not to mention expensive) which can create resistance from attorneys and staff who are already stretched thin.
Though modern software is a key component to having the best legal billing system possible, it must be the right legal billing software in order for it to make a difference.
5 Proven Ways to Make Easy Legal Billing Possible for Your Firm
Though there are always going to be some roadblocks when it comes to ensuring that your legal billing system is perfect, there are a number of things you can do now to make your legal billing process as fail-safe and productive as possible.
Here are 5 easy legal billing practices that every law firm can start with:
- Establish clear billing practices and policies: Clear billing practices and policies should be established and communicated to all attorneys and staff, especially whenever a new procedure is introduced.
Making sure that everyone is on the same page and fully understands the expectations will ensure that ownership is assigned and that each member of the team is clear of the consequences when billing errors occur. - Train staff on billing best practices: Providing training to attorneys and staff members on billing best practices can help to reduce errors and ensure that everyone is following established billing policies.
Make sure that no one feels intimidated by new legal billing procedures before they are asked to tackle them on their own. - Regularly review billing reports: Regularly reviewing billing reports can help to identify any potential errors or issues and address them promptly.
(Having the right legal billing software that can help with this is going to make a big difference in how often this can be done and how simplified the process can actually be.) - Seek client feedback: Soliciting feedback from clients on their billing and invoicing experience can not only help to identify areas for improvement and ensure that their billing expectations are being met, but it can also help to make your clients feel more involved in the process and that their opinions are highly valued by your firm.
- Implement an automated legal billing software system: Using (the right!) automated legal billing software system can help to ensure that invoices and bills are accurate and consistent, reports are generated correctly and that LEDEs billing and trust accounting is always done appropriately and according to industry standards.
How Can I Find the Best Easy Legal Billing Software for My Firm?
Knowing that an automated legal billing software system is going to be your best defense against billing errors and inaccuracies is one thing…knowing which automated legal billing software system is best for your firms is another.
There are plenty of legal billing software systems that claim to be able to help you streamline your billing process and make it more efficient. But how do you choose the best one for your firm?
Start with LeanLaw.
LeanLaw is a cloud based software system that was designed specifically with legal billing challenges in mind.
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Request and track IOLTA funds electronically with our Confido Legal integration. Better understand how funds are flowing in and out of trust and bank accounts with convenient, clear reporting. Realize higher accounts receivable. And use memos to communicate transparently with clients.
Request a DemoCreated by a group of frustrated legal professionals, LeanLaw was born from a desire to find a solution to the exact issues your firm is wrestling with today.
From putting an end to a firm’s time tracking discrepancies to creating accurate and automated invoices, LeanLaw legal billing software is exactly what your firm needs to put an end to your accounting challenges once and for all.
Here are some of the most exciting and innovative features that LeanLaw cloud based software will introduce to your billing process:
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- Easy Time Tracking: LeanLaw offers time tracking in four different ways that makes it easy for law firms to track billable hours accurately.
This feature eliminates the need for manual time entry, reducing the risk of errors and increasing efficiency. LeanLaw also offers batch time entries which will save your firm time as well. - Streamlined Billing Process: LeanLaw offers a streamlined billing process that allows law firms to quickly and easily generate invoices.
This feature makes legal invoicing seamless, as it greatly reduces the time it takes to create and immediately send invoices, which can lead to faster payments and improved cash flow. - Customizable Invoices: LeanLaw offers customizable invoice templates that can be tailored to fit the needs of individual clients.
From adding a law firm’s logo to adding a client’s name and other pertinent information, this feature can help law firms create invoices that are easy to read and understand, reducing the risk of billing disputes. - Trust Accounting: LeanLaw offers trust accounting features that allow law firms to track client funds accurately.
This feature was created to help ensure compliance with state bar regulations and can help reduce the risk of accounting errors. - Integration with QuickBooks Online: LeanLaw is cloud based software that easily integrates with QuickBooks Online, making it easy for law firms to transfer billing data between the two platforms.
This integration can help reduce the time it takes to manage billing and accounting tasks, increasing efficiency and productivity.
Are You Ready to Learn More About LeanLaw Cloud Based Software?
If you’re convinced that your firm could implement a better and more easy legal billing system into your accounting workflow, then consider LeanLaw’s legal billing cloud based software for your law firm’s needs.
Reach out today for your free demo and see why LeanLaw is quickly becoming the most well-respected solution for legal billing software solutions for law firms everywhere.
From streamlining the billing process and eliminating errors, to saving time and maximizing profits LeanLaw provides an ideal solution for law firms everywhere.
