5 Practical Steps for Establishing Your Law Practice

May 9, 2018 By Andrew McDermott 5 Comments

As a lawyer, you’re indispensable.

Your clients don’t always see it that way though. What’s worse, clients often do their best to avoid attorneys for as long as they can. Which makes establishing your law practice difficult.

Deep down, clients understand your value. A lawyer is a necessary savior, a protector that solves very serious and very dangerous problems.

But most lawyers don’t behave that way.

They treat their law practice like a commodity. In the beginning, inexperienced lawyers focus their attention on details that are irrelevant and costly.

Your established legal practice won’t survive without…

The right structures in place.

Establishing your law practice requires that you meet very specific criteria. Handled well, these criteria give you the structure you need to build a successful firm.

Neglect these details and it’s unlikely that your firm will survive.

What details?

The fundamental components you need to build a successful legal practice.

Financial management.
Communications management.
Systems management.
Legal management.
Service management.

These are the building blocks of a successful business. They’re non-negotiable and indispensable. If you want a successful law practice, you need each of these components.

Let’s take a closer look at each of these areas.

1. Financial management

Cash flow is to a business what blood is to your body. Financial management is the foundation, the component that sustains every other part of your business. Good financial management depends on two specific criteria.

Cash flow. More money coming into your business, less money going out. When the cash stops flowing, your legal practice begins to die.
Controls. Rules, policies and procedures governing how money is handled in your business, who has access to what and when. Detailed reporting on what comes in, what goes out and who owes what.

In the beginning, you’ll want to have tight controls over the cash flow coming in. If you’d like to make a purchase using the firm’s resources, justify it. Make another sale that brings the same amount of cash or more than you need.

What happens when you get it?

Implement disciplined financial controls over your cash.

Track your time appropriately, invoice immediately
Require an upfront retainer for all new clients.
Check references if you’re working with corporate clients. It’s a well known fact that large corporate clients are often slow to pay
Set retainer/project minimums and stick to them
Create, outline and enforce your late payment penalties with customers
Reject customers who consistently bring financial harm to your business
Reward customers who autopay, penalize customers who pay on their terms
Factor payment processing fees into your invoices
Negotiate for extended payment terms for your bills upfront
Checks are endorsed immediately “for deposit only”
The employees who record receipts from your bank shouldn’t be the ones to post to accounts receivable/general ledger
Employees authorized to sign for checks shouldn’t prepare vouchers or record disbursements. They shouldn’t post to accounts payable/general ledger
Minimize overhead
Invest your cash on hand
Build business credit/funding via traditional (e.g. loans, line of credit) and untraditional (crowdfunding, alternative loans, investors)

These details are important because they give you the ability to (a.) scale your business up or down rapidly (b.) train employees to manage your cash flow safely (c.) protect your practice from fraud and embezzlement.

This is especially true if you’re a rainmaker.

Ignore these details and success could destroy your practice. At any given time you should know where your money comes from, where it’s going and how much you have. Lose track of these details and your practice will begin to fail.

2. Communications management

Communications is a broad catch-all term that describes a wide variety of areas in your business. Want to attract traffic, leads, customers and sales for your legal practice? Communication is the only way.

Poor communication = a cash poor legal practice.

Here’s the problem.

Lawyers typically have a hard time communicating their value to potential clients. Instead of communicating their uniqueness, value proposition or irresistible offer, they create content that yells “I’m a lawyer! I’m a lawyer! Hire me, please?“

establishing your law practice: poor example - generic lawyer website homepage

A client’s natural response to their request?

Why?

The lawyer in our example used generic communication to sell customers.

This lawyer…

Speaks in a foreign language. Who can serve as executor? Intellectually, clients are probably aware of what that means, but do they understand it fully? Probably not. This jargon steals meaning from the conversation.
Relies on his “25 years of successful practice” as a selling point. What does that mean? Successful how? When? For who? How many times? This statement lacks context so it’s unpersuasive.
Mentions he’s a personal and family lawyer that will provide individual attention. Okay. We know what his practice areas are now. Why should we choose him? What makes him special?
Lists his service areas and not much else.

My goal here isn’t to beat up on him. That said, his marketing failed to answer the three fundamental questions clients have.

Where am I?
What can I do here?
Why should I do it?

Communication covers internal and external communication. It covers topics such as:

Sales
Marketing and advertising
Public relations
Strategic planning and events
Negotiation
Raising capital
Internal meetings and training
HR policies
Communicating with mentors and advisors

These topics aren’t all upfront requirements, so where should we start? Let’s focus on the sales and marketing ingredients you’ll need to establish your law practice.

Your ideal client. The client that’s willing and able to pay what you ask. You’ll need to know the demographics, psychographics and motivations of your ideal client. The words they use, their desires, goals, fears and frustrations. By carefully studying your ideal client you have the tools you need to attract and persuade new prospects.
Problems. No client has a desire to hire an attorney, remember? Clients are motivated by specific problems (i.e. protect my assets, avoid a DUI) and specific psychological triggers like fear, loss, safety and greed.
Objections. Which objections would keep clients from hiring you? What are their red flags? Their dealbreakers and non-negotiable anchor points? You’ll need a compelling answer to each objection.
Risk reversals. Your clients are walled in by fear, skepticism and distrust. These emotions are barriers that keep clients isolated, ensuring they’re unwilling to take a risk. Risk reversals give clients the safety and momentum they need to move forward.
Uniqueness. What’s the one thing that makes your law firm unique? True uniqueness (1.) it’s appealing to your clients (2.) It’s exclusive, something only you offer (3.) It’s clear, easy-to-understand and (4.) It’s trustworthy, credible and believable.
Social proof answers a fundamental question. Can I trust you? You’ll need credible third party sources to vouch for your trustworthiness. With the right mix of trustworthy sources, you can borrow trust from those around you.

What does this look like exactly?

Daniel Muessig graduated as a new attorney. He needed a way to quickly establish his law practice.

But how?

He was relatively unknown and had very little connections in the legal community. He knew he didn’t have the budget or the time to take the traditional route.

So he used communication (marketing) to attract the attention he needed. He created a short ad and posted it on several platforms on line.

Take a look.

His ad went viral instantly.

It generated a firestorm of controversy and debate. Dan woke up to a flood of prospects in his inbox. The leads kept coming. His phone kept ringing. He attracted a massive amount of media attention.

Slate, Vice, Above the Law, Complex, Esquire, and even his old law school shared the news.

Ethics aside, there are a few things that stand out about Daniel Muessig’s ad. He covered each of the six ingredients I covered earlier.

He…

Knows exactly who his ideal client is. His client is a working class/underclass individual who has been accused of a crime in Pennsylvania.
Understands his client. They’re low to moderate income people who are heavily influenced by the hip hop/ heavy metal communities.
Knows their problems. He’s able to work with them on the specific problems they encounter on a daily basis. He knows their circumstances and their environment well because he’s part of that environment.
Defuses their objections ahead of time. He’s aware of what other attorneys will do (i.e. take your money and ignore you). He knows the average attorney looks down on his clients but he shows he’s different (“I’m one of you I grew up here”)
Offers uniqueness and social proof simultaneously. He knows his ideal customer values a specific type of music; he shows them his battle rap record, establishing his bona fides with prospective clients.

He used these details to instantly attract attention to his new law firm. His ad won’t be appealing to people who come from a different socio-economic class. His ad will attract disdain and contempt from the wrong people, those who aren’t Daniel’s ideal client.

And that’s the point.

Compare that with the generic attorney I mentioned earlier at the start of this section. Do you even remember him?

I didn’t.

You don’t have to take the same approach, but you can attract the same kind of results.

It’s simple.

Start by studying your ideal client. Learn as much about them as you can – their desires, goals, fears and frustrations. Then you go from there. Simple isn’t easy, but it can be done.

Establishing your law practice takes work but, as we’ve seen, it’s completely doable.

3. Systems management

Your legal practice won’t achieve consistent results…

At least, not without systems management. You’re an experienced professional. You understand the ins and outs of your business. What about recent grads?

Not so much.

A system gives those who aren’t as knowledgeable the training they need to generate consistent results at the standards you’ve set.

But, what is a system?

A system is a procedure, process or method that enables you to achieve positive and repeatable results. In fact, the only way to achieve long term success in your practice is with a series of systems. These systems can be simple as a checklist associates follow or as complex as an algorithm.

Which systems do you need?

Office, administrative and space management systems

Designing and maintaining telephone and electrical systems
Managing 800 / local telephone numbers
Answering the telephone and relaying messages
Purchasing and managing office supplies
Corporate internet/intranet/email management and policies
Managing ongoing delivery and courier needs
Data management (e.g. backups, archives, storage, etc.)
Managing planning permits and fees
Licensing procedures and requirements
Physical security protocols

Service procedure systems

Listing procedures for providing services
Creating proprietary methods and processes
Retainer / fee / price structures
Outlining inventory of services

Accounting systems

Cash flow management
Accounting management via daily, weekly, monthly, quarterly and annual reports
Payroll reporting and withholding
Budgeting and forecasting processes
Securing and managing growth capital

Accounts receivable / payable systems

Sending invoices and statements to clients
Receiving payments and late fees, and crediting clients for payments
Process for collecting delinquent payments
Procedures, policies and required approvals for purchases
Payment procedures for software, technology, supplies and inventory
Petty cash policies

Customer service systems

Retainer and invoice process
Responding to client reviews and complaints
Fixing mistakes, reworks, breakdowns, inefficiencies and service variations
Required response times
Refund requirements / exceptions

Sales and marketing systems

Sales funnels and lead nurturing
Content development plan
Marketing and advertising plan
Digital media plan (e.g. website, social media, video, etc.)
Offline media plan (e.g. direct mail, magazine, billboards, etc.)
Business and web analytics tracking

Human Resources systems

Employee agreements and hiring procedures (e.g. Topgrading)
Recruitment and retention plans
Training associates, paralegals and support staff
Hiring contract / temporary workers (freelancers, interns, temps, etc.)
Benefits and payroll procedures

General practice systems

Obtaining and managing insurance coverage
Negotiating, drafting and executing contracts
Planning for taxes
Reporting/paying taxes (federal, state, jurisdictional)
Records and archives storage
Preserving investor/shareholder relations
Confirming legal security

Good systems management is the key to building a successful legal practice. It’s the difference between building a business you’re enslaved to and one that’s not dependent on any specific employee (including you).

4. Legal management

At last.

We’re at the area of your expertise. You understand the importance of good legal management and sound advice. You’re well aware of the unnecessary risks your clients take so we won’t cover that in detail here.

Instead I’ll briefly list the areas you should cover.

Choice of business entity
Office lease or real estate purchase contracts
Terms of use and privacy policies
Vendor, contractor, wholesale and employee contracts
Intellectual property protection and agreements
Licensing agreements (business licensing)
Equipment purchase or lease agreements
Loan document, private placements and (later) IPOs
Stock issuance, board authority and corporate bylaws
Labor laws including: OSHA, workers comp, employee disputes, and human resource issues
Buy-sell agreements
Regulatory compliance requirements

If you’re an experienced professional, you’re aware of the details you’ll need to cover in this section. If you’re not aware, you’re able to get in touch with the people who do know.

5. Service management

Your service is what your customers pay for. It seems important, and it is. But it’s the least important part of your business.

The details we’ve covered so far; these are more important.

Establishing your law practice isn’t easy. The steps we’ve covered so far, they’re indispensable. You don’t have to be the best attorney in your field. You don’t have to be a famous super lawyer.

The four steps we’ve covered, they matter more.

More than having the best service, the most knowledgeable team or the most intelligent associates. These details are helpful for sure, but they’re not a requirement for building a successful business.

That said your service should be excellent

Brilliant marketing can’t save a terrible law firm. If you’re looking to build an incredible firm you already know what you need to do to provide exceptional service.

Solve your clients’ problems
Keep your promises
Under promise, over deliver
Be excellent to your clients
Hire A player staff, deliver A player results
Create a service that’s innovative, amazing and fresh
Offer amazing client service
Go above and beyond for your clients

These requirements aren’t really all that new, are they?

Come to think of it, these suggestions are cliché and a little boring. They’re also straightforward, intuitive and easy-to-understand.

As a lawyer, you’re indispensable

Your clients need you.

They need the value, the results your firm is able to deliver. But your firm needs to survive long enough to deliver it. Established law firms focus on the five practice steps they need to build an exceptional business.

It’s a key detail most lawyers miss.

You need the right structures in place. The five fundamental components you need to build a successful practice. As it turns out these aren’t unique to law firms. The recipe for building a successful business is the same, regardless of your industry.

These are the building blocks of a successful business. They’re non-negotiable and indispensable. If you want a successful law practice, you need each of these components.

The framework is simple.

The 4 Best Communication Tools for Lawyers and Their Clients

May 2, 2018 By Andrew McDermott 1 Comment

What’s the #1 bar complaint clients are most likely to file against you?

Poor client communication.

Do lawyers have a reputation for poor communication? All across the country clients file complaints against their attorneys citing neglect and poor communication. There’s some truth to that though right?

Research shows it’s very common for lawyers struggle with communication.

Here’s the problem with all of that.

Clients can be demanding and entitled

They expect you to keep them in the loop, to communicate with them regularly. Yet, these same clients are easily frustrated when they’re asked to pay for more of your time.

That’s just the start of your headaches.

Your clients subconsciously expect you to treat their case with the utmost priority, as if their case was your only case. When they call, expecting an update on their case, project or problem – they expect you to take their calls.

But sometimes you can’t.

Sometimes the person on the phone – parents, aunts, employers, ex-wives – isn’t your client. You can’t tell these people anything because you don’t work for them.
Your clients waste the precious time you need to solve their problem.
Nothing new has happened. Many clients believe there’s always something going on with their case. It’s often difficult for them to wrap their heads around the fact that you’re waiting for communication from a 3rd party.
You’re unavailable. It’s the weekend, night time or you’re just busy. There’s a good chance this client’s business isn’t enough to sustain you or your firm on its own.

This isn’t the real problem though. There’s a deeper problem at play here. It’s a fear that’s fuzzy and unclear, lurking in the shadows of your client’s mind.

Uncertainty.

As an attorney, you’re often the unpleasant expense your client wants to avoid. But you’re also their savior, the only one that can make their fear, pain and frustrations go away. Uncertainty makes their problems worse.

Not in reality of course.

Still, research shows people in general and clients in particular, find uncertainty to be incredibly unpleasant.

This is it.

The hidden problem you’re fighting in your practice. It’s not unreasonable or demanding clients so much as it’s uncertainty. Your client’s expectation is twofold.

“Solve my problem. Win my case, protect me from danger, defend my interests.”
“Help me manage uncertainty. Relieve my stress and anxiety. Tell me what’s happening.”

Problem solving – pretty straightforward, right?

What about uncertainty?

Managing uncertainty isn’t as complex as it sounds. Believe it or not, it’s actually fairly simple.

Ask clients about their communication style – the who, what, where, when and how. Then, determine what you’re willing to give. Set clear limits upfront. Finally, communicate with clients.

Communication is too difficult, too complex

Your clients are conditioned.

Google, Netflix and Amazon have conditioned clients to expect instant gratification. Clients these days are used to getting the information they want when they want it.

Your clients are no different.

They’re looking for information, they want to know what’s happening with their case or project. Which is reasonable.

Most lawyers do it the hard way

They arrange in-person meetings that are difficult to arrange and incredibly time consuming. They’re bombarded by client emails that are loaded with a combination of useful and useless data. Data they’re now forced to sift through.

Can communication tools solve this problem?

Absolutely.

In-person communication isn’t easy.

With the right communication tools, you gain flexibility. With the right tools, clients have the access they need to deal with uncertainty.

Communication, with the right tools, is easy

With modern communication tools your firm should be able to (a.) send bite-sized messages on specific topics to clients (b.) focus communication on the specifics that, at any given time, matter most (c.) reduce the technological burden on clients and staff and most importantly (d.) give clients the ability to speak their mind freely while limiting the requirements or burden on you.

Are there any tools that meet these requirements?

Absolutely, let’s take a look.

#1: Client portals

It’s easy for clients to see what their doctor does for them. Examinations, x-rays, prescribing medicine – it’s all visual. It’s different for lawyers – clients aren’t entirely sure what you’re doing on their behalf. Client portals come with an unexpected opportunity.

The chance to flood your clients with helpful data.

This isn’t a pointless data dump or useless information that’s shared for the sake of sharing. It’s relevant, actionable and informative. It provides your clients with 24/7 access to important data. Documents, forms, filings, reports – anything that moves your client closer towards their goal.

Why it works:

Providing your clients with a steady stream of data relieves their uncertainty. When you upload content to your client portal, clients receive a visual reminder that (a.) you’re working on their case or project (b.) you’ve shared evidence with them directly and (c.) there’s material for you to discuss at your next meeting.

It gives your meetings structure and focus.

Document management and client portals reduce rambling and confusion in your meetings.

#2: UberConference

Every day, 75 percent of the Fortune 500 rely on conference calls.

Conference calls aren’t always convenient.

They’re not always as straightforward as they should be either. UberConference is a free/paid option that allows you to contact clients automatically and at your convenience. Schedule a call, add participant’s phone numbers to the list and UberConference will automatically call everyone when it’s time.

Clients aren’t required to remember pins, it’s available via mobile and desktop apps and can handle web conferences. The calls are free, recording is included and it’s always available.

Why it works:

It’s a simple, quick and easy way to bring clients, attorneys and support teams together. It’s inexpensive and thanks to UberConference, it’s free.

This gives your clients structure.

Scheduling meetings / calls means you have the tools you need to train your clients. There’s no reason you have to deal with random or unexpected client phone calls. Use your client portal to share access to important data, then just schedule a client meeting ahead of time.

It’s simple and clear.

#3: Legaler

Apple’s Facetime, Microsoft Skype and Google Hangouts have been touted as helpful tools for lawyers to use in their practice. Here’s the problem: Facetime and Hangouts stores your content on their servers indefinitely. Skype stores content from calls with more than two participants.

Your conversations aren’t necessarily private.

They’re easily accessible via legal (subpoenas) and illegal (hacks, phishing) methods which means this is a huge liability waiting to happen. There’s also a few significant downsides. These options don’t record meetings, chats and files. They also don’t integrate with the tools and resources your firm is already using.

Enter Legaler.

Legaler is free video conferencing software that offers:

In-browser, video face-to-face meetings with multiple participants (and no software, plug-ins or downloads to install)
Screen sharing and one-click collaboration
Cloud based video storage with end-to-end encryption
Integration with 3rd party legal software from a variety of SaaS providers
Private, shareable content (e.g. agendas, meeting notes, documents, etc.)

Why it works:

Browser based software makes it easy for clients to use. There’s nothing to install, no apps to track, no complicated instructions to cover.

This is a bonus.

Clients already know how to use their browser. Associates and paralegals aren’t required to install anything new. There’s little to no transitional pain involved and customers are focused on what matters most. Legaler provides flexibility.

Attorneys are able to meet with clients for a quick two to three minute call – unheard of with in-person meetings. If they need to schedule an in-depth call, Legaler does that too.

#4: Signal Messenger

When it comes to secure or private messages Slack is an option that’s presented regularly. It’s easy-to-use, has widespread adoption and a large user base. It’s the client communication tool of choice for many law firms…

And a disaster waiting to happen.

Why?

Encryption is on and controlled by Slack. Slack owns and reads your conversations. What does this mean? Your conversations on Slack can be subpoenaed. Not so great for attorney-client privilege.

Signal Messenger works with, not against you.

Open Whisper Systems, the organization behind Signal Messenger, created a tool that enables you to send high quality text, voice, video, document and picture messages anywhere in the world, without SMS or MMS fees.

It’s end-to-end encrypted, free and peer reviewed.

Why it works:

With Signal, you’re able to send clients encrypted, bite-sized communication morsels. Data that’s easy-to- share, easy to generate and requires very little time.

It’s available on Android, iPhone and desktop. Platforms your clients are already using. A simple install link is all it takes for clients to get started.

Communication is easy because…

Every client is your number one priority

At least from their point of view.

Your clients subconsciously expect you to treat their case with the utmost priority, as if their case was your only one. They call, looking for an update on their case or project – they expect you to take their calls, but sometimes you can’t.

Communication can be easy.

You’re the only one that can save your client from the specific fear, stress and pain they’re going through. As it turns out, you have two jobs – solving their legal problem and relieving their uncertainty.

Communication, at its core, is about relieving uncertainty.

Most lawyers have a reputation for poor communication. All across the country clients file complaints against their attorneys citing neglect and poor communication.

This doesn’t have to be your story.

You can relieve the pain and anxiety your clients feel today. With the right approach and the best communication tools available, you’ll find you can communicate with clients on your terms, no bar complaints needed.

Release Notes: May 2018

May 1, 2018 By Bill4Time Staff 3 Comments

The Bill4Time product team releases new and enhanced features, system improvements, and bug fixes several times per week. Organized by month, the Release Notes blog series will highlight all the changes we’ve implemented, so you can easily stay up-to-date on what’s new. If you have a question, feedback, or an idea – please leave a comment below!

Take a look at what we’ve released this May:

Updated 5/30/2018

New Monthly Summary Report – We’ve released a new Summary report that groups time and billable amounts by month, and then by Client and Matter.

Save and Duplicate Invoice Template – Our developers have deployed a new functionality that will allow you to duplicate your current Invoice Template into a new version, and then make tweaks and other adjustments from there without having to re-select all the same options.

Invoice Past Due Watermark – Thanks to user feedback, we’ve implemented a new Invoice Preset option, found within the Invoice Template Editor, that will cause a Finalized invoice to reflect a ‘Past Due’ watermark if the invoice is unpaid after the due date has passed.

Updated 5/24/2018

Activity Type Requirement – We’ve updated our Smartphone and Desktop apps to bring those settings into alignment with your online account – users are now no longer required to select an Activity Type when saving a Time Entry.

Internet Explorer Error – Thanks to user feedback, we’ve implemented a change to how Bill4Time operates within Internet Explorer to streamline the payment creation and application process. Users are now able to more freely open and apply transactions to their invoices using fewer clicks.

Summary Report Default Filters – We have updated the default filters for all Summary reports so that Disabled clients, Closed projects, and Disabled users are included as the default setting.

Invoice/Statement Header Text – Our developers have identified and resolved an bug that affected saving the Header Text within a Client’s Invoice Presets tab. Previously, after deleting the custom header text – upon clicking save the field would revert to the original text, now the field will permit the user to save a completely blank header.

Labor Mnemonic – We have updated the mnemonics found under the Work History of a Project to have them observe a Custom Mnemonic setup within your account settings.

Public API – We’ve updated our API to permit the Middle Initial field to be read from, found within each user’s profile.

General Data Protection Regulation (GDPR) – We’ve updated our Terms of Service to bring them into alignment with GDPR. Please see the following link to review this addendum: Terms of Service

Updated 5/23/2018

Restore Project IDs within Dropdown – Based on user feedback, we’ve implemented a change to the system that restores the display of Project IDs within the corresponding dropdown. Now users are able to search by name or ID when typing into this field.

Updated 5/11/2018

Microsoft Edge Icon Display – Thanks to feedback from users who use Microsoft Edge browser, our developers have updated how icons display on the Invoicing Dashboard so that these icons appear normally under all the most common display settings.

Edit Custom Invoice/ Statement Header Text – Our developers have identified and resolved a bug that was preventing the user from clearing out the text in this field, and saving. This issue has now been resolved for all subscribers, and your Invoice Presets can be edited to eliminate the custom header text completely.

Applying Balance Adjustments – We have resolved an uncommon issue affecting Balance Adjustment – Credit transactions that were preventing the adjustment from being applied to an invoice in rare circumstances.

Edit Payment Screen – Our developers have identified and resolved an issue affecting a small number of users where the browser was attempting to auto-form fill the payment method field when editing a pre-existing payment. This issue is now resolved for all browsers and all users.

Updated 5/8/2018

Non Project-Related Entries – Thanks to user feedback, our developers have diagnosed and resolved an issue relating to the ‘Non Project-Related’ system setting. Previously, this option was available to select for a period of time after the setting was disabled. The issue is not resolved for all accounts and users.

Invoice Template Selector – We’ve updated the Invoice Setup tabs in various areas of the program to make it more clear whenever the user is changing to use a different template that is currently selected.

Project Dropdown List Performance – Our developers have identified and resolved a performance issue relating to the loading of projects within the Project dropdown list on the New Time Entry Screen. This issue affected only a small number of clients, only those with hundreds of open projects, and this is now resolved so that the full list loads upon selecting one of these client.

Add Closing Fee – We’ve resolved a bug where the Entry Type selected when choosing the ‘Add Closing Fee’ button defaulted to Hourly instead of the Project Closing Flat Fee. This bug is now fixed in all accounts, and the button functions as expected – to open the Closing Fee with the Flat Fee Rate populated on the entry.

Payment Method Dropdown – Thanks to user feedback, we’ve identified and resolved a bug that was affecting a small number of users where editing a payment caused the Method selection to revert to ‘Check’ instead of the current option being maintained. This issue is now resolved for all accounts and for all major browsers.

Updated 5/1/2018

Payments Applied Report Update – Our developers have released an update to this report that allows the payment’s note to appear along with the payment. Also, we’ve introduced a new option to filter the date range by the Invoice Date the payment is applied to.

Batch Time Entry – Our developers have identified and resolved an issue within the Batch Time Entry page that was preventing the default Billable Activity Type from populating and allowing the entry to be saved. This is now resolved for all users.

Click here to view April’s Release Notes

Question or comment about a change we’ve made?
Please contact Bill4Time Support by Email or phone: 877-245-5484

Customer Story: Benefits of Modern Time Tracking and Billing

April 27, 2018 By Garrett Sussman Leave a Comment

More and more businesses are making the switch to modern time tracking and billing to better better manage their operations. Read this customer’s story on her experience using Bill4Time and how it provided solutions to bottlenecks in their business.

The Environmental Design Partnership has been serving the Capital Region in upstate New York, for over 40 years. The thirty member multi-disciplinary consulting firm established in 1977, specializes in civil environmental engineering, consulting, landscaping, architecture, and land surveying.

Their motto, “Shape the physical environment,” embodies the ways in which they are making the world a better place.

Pain points:

In 2016, the executive team decided that they needed to modernize their time tracking and billing operations.

One of the key features for billing and tracking software to be effective is the ability to search and sort various clients and projects in the most efficient manner. If it takes more time to search for the invoice than it takes to communicate with the client, that’s a problem.

Kimberly McAlonen, the office manager at EDP LLP, was hired when they were transitioning to Bill4Time’s platform. She had to learn two different software suites at the same time. Her personal experience with both tools cemented the value of Bill4Time in her eyes.

The firm’s previous solution was weighed down by an outdated interface and a bulky typewriter aesthetic. Instead of helping her effortlessly send out invoices to clients and generate reports for everyone to review, she found herself overwhelmed.

“I couldn’t search key words at all, I had to know the client, and sometimes the checks would come in with different names on it. So I’d have to go around the office asking, “Who owns this check?”

It also didn’t help that the solution lacked a cloud computing element, requiring Kimberly to manually backup their data quite frequently.

“We have 25 users so, when you’re trying to backup, you couldn’t do it at certain times of the day, because there were so many people working on the old system.”

The old software was not intuitive, and despite training on it for a month, Kimberly found herself desperate to implement Bill4Time.

“It was very clunky. It was like a database. I’m sure it had very good searches and reports and everything, but for me, going in brand new, and I never had done billing before either, it was very overwhelming to me. I did have a trainer and he did train me for a good month, two months. But then, when we started transitioning, I begged. I said, ‘Let’s change now.’ And we did.

I had worked in another place before that used other software which was Windows based, not online, or a cloud solution. I knew there was something better out there for EDP, and Bill4Time was it.

When it came to the rest of the firm, I was met with resistance to a new software. The fear was that it would be a pain to learn a new solution all over again.”

Implementation:

As creatures of habit, change can be scary, but EDP just said to their staff, “This is what’s going to happen. We’re updating.” And they just switched, cold turkey.

Bill4Time reached out to Kimberly and her colleague Travis (who manages the IT related tasks in the firm), and set up a data import for the firm. Bill4Time also migrated the old accounting process into the new system.

Travis put together the spreadsheet of data, then passed it to the Bill4Time team. Kimberly felt the database import worked really well, especially because Bill4Time was able to maintain a familiar taxonomy attached to past projects that made it easy for staff to identify those same items in their new system.

With the transition to Bill4Time, EDP brought over existing (long) project codes. The new projects, which follow a new numbering sequence with shorter ID numbers, created a contrast between the data that came from the old system and what is new. The transition, and added contrast, provided Kimberly and her team the opportunity to clean up issues stemming from the old system. She was able to go through, and easily clean up closed projects.

Unexpected Benefits:

Whenever you add a new tool or system, you’re required to learn a new way of doing things. One of the things that surprised Kimberly, as she was training the employees of EDP LLP to use Bill4Time, was how the flexibility of the software allowed their staff to continue many of the techniques they had become accustomed to when tracking their time.

Kimberly shared, “Of course, as you know, there are many different ways of doing something. Everybody taught me something new. Every day, as I was showing them how to do it, they would say, ‘Oh, well I do it this way…’ and I’m like, ‘Oh! Yeah! You can do it that way!’ “

Another unexpected benefit for Kimberly when getting up to speed with Bill4Time?

“The support has been amazing. Ahhh-mazing. You guys have been great. That’s another reason why I would never switch. “

Adopting time tracking and billing software, isn’t always simply about the employees. It can also be an adjustment for the firm’s clients.

In the case of EDP, the clients accepted the new solution really well.

Kimberly loved that.

“They get to see our logo in color. If they need to contact me, my email is right there on the top. They call or email. It’s a fresh new look. Very updated from what we were using. The invoice numbers are amazing. Everybody writes down their invoice number, and it makes putting in the checks when I receive them, so much faster.”

Kimberly loves the new payments workflow, updated in March of 2018. Now when Kimberly has the task of putting in the checks, she goes into invoicing, puts the invoice number in, it comes right up, she clicks on that, and then she can hit payment within the invoice itself. The amount of the invoice even populates for her.

How does Bill4Time save you time?

Previously, at the end of the month, having to review the reports and correct mistakes in the pre-build stage, this made for a long, long, process – close to two weeks for Kimberly to update all of the firm’s time entries to make corrections or add detail.

Now?

“Actually it takes one week now and only because I give people 5 days to look over their information. Otherwise, they would only take 3 days. It’s my time, I do all of their changes. We don’t ask them to do the changes.

I have had some errors go out yes, but again, this is very important. It’s very easily changed when you find your mistake. Our clients have been very good about changes and amendments to their invoices.”

Advice for other firms looking for a new time tracking and billing solution?

“If you’re looking for a new system, my advice would be to search it out, and be very detail oriented. Look at the many different things that would fit your place of work.”

What’s the biggest value for Kimberly when her firm switched over to Bill4Time?

“Time saver – My time is money. With Bill4Time, I can focus on other important tasks that need my immediate attention in the office. In fact, I just trained our hydro-geologist, and he picked it up in 2 seconds.”

Best Practices For Implementing a New Software Solution For Your Firm

April 25, 2018 By Andrew McDermott 1 Comment

You’ve done it.

You’ve purchased a brand new piece of software. The software solution to your recurring accounting problem. You’ve watched the webinars and product demos. You know what this piece of legal software can do for your firm.

So, why aren’t you using it?

It wasn’t cheap. You spent a considerable amount of money on this product or service but it’s not really being used.

Sound familiar?

You may not want to learn how to use the product you paid for

That’s right.

You may not be interested in using the product you’ve just spent a significant amount of money on. Yes, the very same product you know will solve your accounting problem.

That sounds insane.

What’s worse, your employees may have even less of an interest in learning how to use the expensive new software solution you’ve just purchased.

It’s not as crazy as it sounds.

What’s more surprising about this situation is this. It’s not your fault.

Maybe you feel guilty or ashamed? Maybe you’re down on yourself a bit that you (or your staff) aren’t taking full advantage of the tools and resources you have available to you.

Does this sound like you?

If it does, there’s actually a better option. You start by changing the mental model you’re using.

Best practices fail when you’re missing the right behavior model

Okay, first things first. What do I mean by “behavior model?”

It’s behavior prediction and forecasting.

A behavioral model is a collection of data you use to make predictions about future behavior. I’m oversimplifying things here intentionally. I don’t want us to get bogged down or lose focus.

BJ Fogg, researcher at the Stanford Persuasive Technology Lab, created the Fogg Behavioral Model (FBM). The FBM was designed to answer a simple question.

“What causes behavior change?”

The FBM shows there are three elements to behavior change.

Motivation. A compelling reason for people to change their behavior.
Ability. The capability to change behavior in a desired fashion.
Triggers. A prompt or call-to-action that tells people to “do it now!”

Top10 mistakesbehaviorchange bj-fogg8updatezc from BJ Fogg

What does this behavioral model have to do with implementing a new tool at your firm?

It’s all about conditioning.

Want your staff to use the software solution you’ve purchased? Looking to successfully implement a new software or digital tool at your firm?

You need these three elements.

This is ridiculous.

And also a little ironic. It seems like overkill, doesn’t it? All this hard work just to entice your staff (or yourself) to use a software solution you’ve already paid for.

Here’s the thing.

Research shows 40 to 60 percent of users who sign up for a free trial or purchase software use it once, then never again. Like I said, if you’ve purchased software at some point for your firm, you need these elements.

These elements work whether we want them to or not

These details are dependent on specific sub-categories. It’s all about creating the right environment for your staff. The wonderful thing about this model is that it’s designed around human behavior.

Create the right formula and success is far more likely.

Let’s take a look at these sub-categories and break them down in detail.

Element #1: Motivation

When it comes to human behavior, there are three basic motivators. These core motivators apply to everyone but they’re expressed in a variety of different ways.

Sensation governs pain and pleasure. These can be both subjective and objective.
Anticipation regulates hope and fear. This includes subsets like expectation and frustration.
Belonging regulates social rejection and social acceptance.

FBM shows that when motivation is high, it’s temporarily easier to get people to do difficult and complex things. Conversely, when motivation is low, people are temporarily unable to do hard things.

This is tricky.

It means intangible factors like trust, respect, creativity, psychological safety – factors impacting morale, they all matter more than we realize.

Here’s the problem.

You can’t run a business based on the whims of staff motivation. What’s worse, it’s difficult (and impractical) to gauge the motivation levels of your firm throughout the day. That’s no way to run a business.

So you assume motivation is always low.

You rely on sensation, anticipation and belonging as psychological tools (not tricks!) to earn cooperation. How do you increase motivation organically?

Gamify the onboarding process with a specific, simple, high value task (e.g. associates with the highest # of billable hours wins X)
Offer incentives to teams or departments. Reward those with both the greatest amount of input and the most accurate result
Create a performance leader board ranking top and under performers. Use actionable metrics to measure performance objectively (e.g. these are the top five and bottom five associates, by Y metric)

See the difference?

Pumping up motivation artificially isn’t effective. Working around the motivation your team already has is simple and effective.

Element #2: Ability

Ability, as a whole, relies on simplicity. If it’s simple and easy-to-do, it’s more likely to be done, even when motivation is low. Simplicity factors rely on a simple concept. Removing barriers.

Simplicity factors

Time. “It takes too long” or “That was faster than I expected.”
Money. This has a negative financial impact on me/us vs. a positive financial impact on me/us.
Physical effort. “This is exhausting and hard” vs. “easy and enjoyable.”
Cognitive ease. Easy to think about, difficult to think about.
Social acceptance. This is socially unacceptable (stressful) vs. this is socially acceptable.
Regularity. “This isn’t something we normally do” (irregular) vs. “At 2PM I usually…” (regular).

Think of these simplicity factors as knobs on a radio. You’ll want to turn each of these up or down depending on the goals you have in mind. The easier it is for your team to manage each of these areas within your software solution, the more likely they are to use it consistently.

Which is key.

You want to implement a new software solution in your firm. How would you go about doing this?

Choose a simple goal. The more simple your goal, the greater your odds of success. The goal could be as simple as getting associates and paralegals to click an install link. Or opening the app at the start of a client meeting.
Ask support reps for help. Mention your goal to your support rep. Ask them for the simplest but most valuable step (one step) you can take to move your team towards your goal. Turn that habit into a company-wide Tiny Habit.
Using simple, easy-to-understand language that’s free from unnecessary jargon. If it’s easy-to-understand it’s easier to do. Compare the phrase “three blind mice, see how they run” to a “trio of sightless rodents, see how they perambulate.” See what I mean?
Minimize requests. If you want your team to install the mobile app, don’t muddy the waters by asking them to add three time entries, or upload 10 documents. Focus on one, simple request. Make it as simple and easy as possible.
Repeat steps 1 – 5.

Create Tiny Habits, take teeny tiny baby steps if you’d like create a long term habit. Large habits and big leaps? They almost always fail. Ask support reps to guide you in creating structured behaviors (e.g. At 11 and 3 PM I’ll open my time tracking app)

Simple and easy.

This doesn’t seem like it’ll work, does it? There’s another key factor at play here.

Trust.

Trust that your Tiny Habits and baby steps will grow naturally. Expect that your team’s feelings of success will grow with each tiny accomplishment. Believe it or not, the emotional response tends to be disproportionately high. Tiny accomplishments create a cascading flow of success. Success leads to more success.

On the other hand…

Asking your staff for too much too fast creates discouragement. Repeated failure creates more discouragement and despair, eventually leading to learned helplessness. This also has a cascading effect. Implementing a new piece of software successfully depends on simplicity.

Element #3: Triggers

Triggers = X. If X then Y.

Triggers set behavior in motion. They tell your staff to “do Y now.” A trigger can be externally driven (client phone call), initiated by structured behaviors (meeting at 4 o’clock) or part of our routine. Triggers can be location specific and intentional.

They’re indispensable.

Without a trigger, the behavior you want (e.g. enter billable hours) won’t happen. Even if motivation and ability are both sky high.

Triggers have different names.

Requests
Offers
Cues
Call-to-action
Prompt

When it comes to changing behaviors (e.g. successfully implementing a billing solution for your firm) there are three types of triggers.

Spark: A trigger that’s paired with a motivator (like the ones we’ve discussed above) works best when motivation is low.
Facilitator: A trigger designed for people with high motivation but low ability. This trigger is a helpful way to learn how to use a new software feature. Acting on this trigger means a recurring task will be more difficult at first, then easier to accomplish again in the future.
Signal: This trigger is appropriate for staff members who have both high motivation and the ability. These triggers simply serve as reminders to take action. They’re simple, straightforward and clear.

Triggers make us more impulsive (in a good way).

How can triggers help you to implement a tool? That’s fairly straightforward as well. Simply start with Sparks.

Assume low engagement and disinterest.

Give your team (and yourself) the motivators (e.g. sensation, anticipation and belonging) needed to take positive action. Then tie that motivator to a trigger or cue.

Here are a few examples.

Associates who enter billables after client meetings receive X
After each client interaction I need to do X to avoid Y
After client/court documents are received paralegals will do X

See the difference?

Triggers provide the momentum for action. Implementing the right solution for your firm is impossible if you’re missing the right triggers.

We don’t want to use what we’ve paid for

When we purchase a brand new piece of legal software we’re focused. We watch the webinars and demos. We do the work needed to properly research and vet our solution.

Then we abandon the products we purchase.

We don’t want to learn how to use the product we’ve just spent a significant amount of money on. Our employees are even less interested in learning how to use the software solution we’ve selected.

Now we know why.

We’re hardworking and disciplined. We bite off more than we can chew. We try to create large habits and big leaps. But we almost always fail. The answer is simple.

Start small to accomplish more.

Best practices fail when you’re missing the right behavioral model. Using what you’ve paid for, it isn’t about more, it’s about less. With the right behavioral model and a focus on keeping things simple, you’ll implement your software tools successfully.

How To Research and Vet Legal Software Solutions For Your Law Firm

April 18, 2018 By Andrew McDermott Leave a Comment

No one wants to do it.

It’s not like most firms enjoy evaluating and vetting legal software solutions for their firm. So it’s common for firms to simply ignore the problem.

Anything to minimize the amount of upfront work they do.

Maybe they do half the amount of research and vetting required to evaluate their legal software. Or none of it. It’s just software after all.

What could go wrong?

Legal software often comes with unexpected downsides

Purchasing the wrong software increases transitional pain and user onboarding. It also magnifies the potential downsides you experience at your firm. Here’s an example of legal software gone wrong.

This review speaks volumes doesn’t it?

It’s a devastating account from an active customer. This concise review tells us a lot about the downsides that come with poorly vetted software.

This software is incredibly difficult to use. Translation? Associates spend more of their time on non-billable work than they should.
This customer gave their software zero stars. He states: “this product has no redeeming features” stating the product is: unusable, the worst and doesn’t work.
Associates are forced to use unsecure web browsers, risking client confidentiality and increasing their firm’s risk of legal liability.
This reviewer’s word choice suggests that morale has declined at this firm
It’s an eBilling product that struggles to handle… billing.

This looks pretty bad doesn’t it?

This firm continues to use a system that (a.) costs more money and makes everyone miserable (b.) doesn’t perform as expected (or at all) and (c.) leaves the firm exposed to potential lawsuits.

This isn’t the worst part.

This law firm is still using this product! They’re trapped in an unpleasant situation with an eBilling product that takes money from their business.

How do you avoid making their mistake?

Choosing the right software solution begins with self evaluation

You’ll need to take stock of your current situation as a firm.

You should have a clear idea of (a.) who you are as a firm (b.) where you’d like to go as a firm and (c.) whether the software providers you’re considering are workable, a fit, or simply wrong for you. Think about approaching this from the standpoint of “what does the firm need?“

Here’s a few broad categories you can start with.

List habits (good and bad). Do you use hourly rates, value pricing or contingency billing? Does the legal software you’re considering do this natively or is this simply something they tacked on to their feature set? Do you have a specific set of policies and procedures you follow or does your firm follow a process that’s more fluid?
Outline goals and outcomes. It’s a common mistake for firms to look at features first. Begin your research by focusing first on the specific goals you have. Planning on adding remote staff in the future? Your needs are very different from the large firm with lots of in-house staff. What about solo firms looking to grow quickly vs. firms that are looking to stay small? You’ll need to outline the goals and outcomes you’re looking for first. Features should be dictated by goals.
Determine future needs. If you’re running an estate planning firm with lots of paperwork, you’ll need document management/backups in place to protect against fires or floods. What if you defend lots of high-risk, celebrity or controversial clients? You’ll need software with an emphasis on data encryption and communication privacy. Think about the needs you’ll have both now and in the future.
Assess risk and safety. What are the group policy and security requirements for your firm (e.g. 256K-bit SSL encryption and SSAE 16 Type II certification)? Do you need software solutions to accommodate specific requirements (e.g. user permissions/roles)?

Next you’ll want to use the MoSCoW method (e.g. Must have, Should have, Could have, and Won’t have) to identify your deal breakers and non-negotiables.

Take this legal software provider for example.

It takes 45 days to get up and running. They provide onboarding / training but a support manager is only available for the first 90 days. After that you’re on your own.

Is this a deal breaker for your firm?

A self-evaluation means you know whether their offer will work for your firm or not.

Look for…

Product wants. What are the specific product wants and needs of your firm? Are you looking for a SaaS, on-premise or hybrid software? Small, medium or enterprise class software?
Feature sets. What features or lack of features are acceptable versus deal breakers? Are these requirements static and unchanging or will they evolve as your research gains clarity?
Warranties and agreements. Will you need any assurances? Does your firm require an SLA? If you need one it’s probably a good idea to determine whether your providers are willing to provide that.
Budget requirements. Product features aren’t created equal. For example, document management at the SME level isn’t the same as it is at the enterprise level.

This is the upfront research that matters most.

The data you accumulate at this stage acts as a compass. The data you accumulate from your self-evaluation gives you the criteria you need to qualify and disqualify potentials.

Identified a list of potentials?

Excellent, you’re ready for the next phase in your due diligence.

Step #1: Search for credibility

Credibility is a gift, an important part of the sales process.

It’s an especially important component of an effective value proposition. Researchers at Stanford University’s Persuasive Tech Lab, identified four types of credibility you can (and should) use to vet legal software providers.

Reputed credibility

Positive feedback and recommendations from an objective, 3rd party source. Unbiased reviewers, ideally attorneys and firms who have worked with the companies/software solutions you’re considering. This could be a testimonial on your site, reviews on Trust Radius, Capterra or G2, or recommendations via Google search.

and

Software solutions with reputed credibility…

Rely on 3rd party reviews and testimonials
Have case studies and professional product reviews
Trust seals and badges from providers like G2, Capterra, BBB, etc.
Positive or negative press/media coverage
Client lists, connections to influencers and (to a lesser degree) awards

Use reputed credibility to flush out pain points, mistakes, objections and experiences.

Presumed credibility

Presumed credibility is all about the mere-exposure effect. A psychological phenomenon where we develop a preference for things – simply because we’re familiar with them. I saw your ads on Above the Law, I read your LexisNexis guest post, I listened to your interview on Attorney Talk, etc.

Presumed credibility uses the mere-exposure effect to…

Creates comfort, likeability and familiarity
Improves processing fluency and increases receptivity
Increase trust by default (helpful if the providers you’re evaluating deserve that trust)

Earned credibility

As a prospective customer, you’ve had a positive experience with the legal software firms you’re evaluating. Their website is easy to navigate, sales calls were productive and helpful, their content was clear and concise, etc.

Legal software providers with earned credibility…

Have a consistent track record.
Don’t ask for the unnecessary upfront.
Answer your objections.
Are candid and helpful.

Surface credibility

Your subjective opinion of the legal software solutions you’re evaluating (e.g. This is easy to use, I like how this looks, looks trustworthy). Examples of surface credibility include:

Good product branding
Professional website design
No errors, bugs or technical problems
Demo availability
A site/product that’s easy-to-use
Staff photos, bios and company contact info
High quality imagery

Legal software with good surface credibility are…

Invested in their product and service.
Have the right credentials, values and ideals
Use legal software conventions and your pre-existing expectations to build trust

Step #2: Vet providers legal software solutions

Experienced firms know it can be tough to determine whether a legal software solution is a proper fit. What looks good on paper may be a disaster in reality. It’s a common practice for software providers to offer a demo or free trial of their product.

Take advantage of it.

Request demos. You’ll need time to verify that the software solutions you’re considering will work with the tools and resources you’re already using. Requesting a demo + sales call gives you the details you need to gauge your provider’s familiarity with their own product.
Verify product development. Look for continued investment/development into the product. Ask about their product road maps, implementation and future plans; you’ll want to verify that the product you’re buying isn’t simply a cash grab to prop up a struggling company.
Make sales calls. How are sales people trained? Are they knowledgeable and focused on serving your needs or are they pushy and aggressive closers who are only focused on the sale? Remember the saying: How they sell is how they’ll serve.
Ask for clear upfront pricing. Verify the total cost of ownership (e.g. initial, training and future costs). Get clear details on any incidentals or extras not listed.
Share your objections. Share your concerns and objections with each vendor. Ask for a solution to your core objections. Look for SLAs, guarantees and warranties. Take note of vendors who are unwilling to commit fully to their own product.
Look for support. Your team will most likely need onboarding, training and support. Is this comprehensive? One-on-one? Self serve? Ask software providers if they’re willing to extend the support you need to get buy-in from your team.

Make a real effort to use the legal software in a day-to-day setting. Notice any red flags, run into any problems? Ask about it. Have questions or concerns? Raise them. Behave as if you were already their best, most profitable customer.

Outline your deal breakers ahead of time. Then watch how legal software providers respond.

Pay attention to their content, style, tone and approach. Are their support reps irritable and difficult? Do they give you incomplete answers? Does the software fail to perform as expected (or simply fail)?

The cost of failure is high. Too high for you to ignore

No one wants to research and vet legal software.

Which is why it’s ignored so often. Partners and associates at law firms, they’re already exhausted and overworked. For many, it’s about finding “good enough” rather than identifying “great.”

Don’t let it happen to your firm.

This isn’t just a case of low priority work. It’s about the tools you need to grow and maintain your firm. Researching and vetting your legal software takes time, but the rewards are there. Legal software often comes with unexpected downsides.

This doesn’t have to be the case for your firm.

Choosing the right legal software begins with self-evaluation, asks the right questions, and ends with complete answers. Keep downsides to a minimum. With the right amount of research and vetting you’ll find the perfect legal software solution for your firm.

Because the stakes are high, too high for you to ignore.