Billable Hours Best Practices: A Lawyer’s Guide to Smarter Billing

Billing hours effectively is a crucial skill in the legal field, directly impacting both a firm’s profitability and an attorney’s career progress. The goal of this guide is to offer grounded, actionable advice on how lawyers can better manage and maximize their billable hours. 

Drawing on the expertise of seasoned legal professionals, this blog will offer insights that cover the major frustrations in legal billing today. We’ll cover topics like:

• Understanding billable hours
• Effective billing practices and tips
• Increasing your billable hours
• Cutting down on non-billable hours
• Setting realistic billable hours targets
• Using legal time tracking software

By leveraging these proven tactics, our guide aims to empower you with the knowledge that can transform how you manage your billable hours, setting the stage for enhanced efficiency and success in your legal career.

How Are Billable Hours Charged?

Lawyers charge billable hours by logging the time spent on client work and multiplying these hours by their hourly rate, usually using 6 or 15-minute increments to ensure precise billing. This detailed method helps maintain clarity and fairness in billing, which is critical to building trust and maintaining professional client relationships.

For instance, consider an attorney who spends three hours and ten minutes drafting a contract. If using six-minute increments, they would log this time as 3.2 hours. At an hourly rate of $300, the charge for this task would be $960.

This method ensures clients are billed fairly for the exact amount of time spent on their case, while attorneys receive appropriate compensation for their skilled services. By keeping detailed records of the time spent on various tasks, firms can provide transparent invoices to clients, highlighting the value delivered in each segment of the legal process.

How Do You Bill Hours Effectively?

Effective billing practices are foundational for maintaining both profitability and client trust. Here are insights and methodologies that even seasoned lawyers can use to refine their billing processes:

1. Enter Your Time Immediately

Enter your billable hours as soon as you complete a task to prevent underreporting. For instance, if you draft a legal brief and then immediately log the time spent right after, you can capture all the time you spent and not accidentally forget it or underestimate it later.

The American Bar Association (ABA) notes that if you wait until the end of the week to enter your billable hours, you’ll lose about 25% of your time. So, as you can see, entering your time as soon as possible is vital to ensuring no lost hours and meeting billable hours goals. 

2. Breakdown Each Task

Instead of block billing, where multiple tasks are lumped into a single time entry, itemize each activity. 

For example, rather than entering “Draft and review contract, correspond with client, revise filing – 4 hours,” break your description down further: “Draft and review contract – 2 hours; Email correspondence with client regarding contract specifics – 1 hour; Revise filing according to client feedback – 1 hour.” 

This clarity helps clients understand the value delivered at each step and can help mitigate disputes.

3. Use Legal Billing and Timekeeping Software

79% of law firms use legal technology specifically for billing purposes, acknowledging the significant time and headaches this software saves.

For example, Bill4Time’s interface lets you enter time from desktops, tablets, or mobile devices immediately after completing tasks. You can use the timer feature to time your tasks or manually enter time. It also supports multiple billing rates, which can be tailored for different clients or tasks, allowing nuanced financial management within diverse cases.

You can also create detailed invoices that clearly communicate the value you’ve delivered, enhancing transparency and trust with your clients. As a bonus, you can automate invoice follow-ups for clients who haven’t paid, ensuring you get paid promptly. These are just some of the many features legal software offers to support your billable hours practices.

See how Bill4Time works with a free trial (no credit card required).

4. Don’t Forget to Bill for Short Tasks

When handling client communications and other brief yet frequent tasks, it’s crucial to recognize each contribution to a case, no matter how small. As you tackle daily emails or quick client updates, diligently record these efforts immediately. 

For instance, if you spend about five minutes each day responding to emails on a particular case, log these individually in your timekeeping software right after completion. Your clients will appreciate the transparency this method provides, seeing a detailed account of how their legal services are being rendered day by day. Plus, it ensures you are paid fairly for all the time you dedicate to a case.

Think about it this way — say you send three emails a week in one case over the course of a year, and each email takes you about five minutes.  That’s 15 minutes per week, which translates to roughly 13 hours annually just for these emails. If you’re billing at a rate of $300 per hour, not logging these short tasks means missing out on approximately $3,900 over the year.

As you can see, these small tasks add up quickly, so be diligent about recording them as they happen.

5. Optimize Your Billing Descriptions for Better Client Understanding

When detailing your billing entries, specificity can significantly enhance client understanding and satisfaction. Instead of a generic entry such as “document review,” take the extra step to specify which document you reviewed and for what specific purpose.

For instance, instead of just listing “Reviewed contract,” expand to “Reviewed employment contract for compliance clauses and potential liabilities.” This description clarifies the precise nature of the task and highlights your thorough approach and expertise, justifying the time spent on each task.

Remember, clear and comprehensive billing descriptions can lead to fewer questions from clients regarding the nature of billed services and facilitate smoother invoice approval processes. This practice also aids in quicker payments and reduces disputes, enhancing the client relationship.

6. Regularly Train Staff on Billable vs. Non-Billable

Understanding which activities count as billable versus non-billable is vital for the financial health of your law practice. Conduct regular training sessions to outline and update these definitions based on current laws and firm policies.

For example, drafting correspondence directly related to a client’s case is billable because it directly contributes to their legal representation. In contrast, time spent on general administrative tasks, such as organizing client files or scheduling appointments, does not typically count as billable unless specifically agreed upon with the client under certain conditions.

7. Negotiate Billing Terms Upfront

Clearly discuss, agree upon, and put into writing what will be billed and what will be off the record with your client before beginning work. For instance, deciding that all communication will be billable unless purely administrative prevents misunderstandings about charges for emails and calls.

It’s also wise to outline how you will handle expenses related to the case, such as filing fees, document retrieval fees, or even travel expenses. Specify whether your firm will absorb these costs, pass them directly to the client, or bill them separately. For instance, you might decide to bill for travel time only when it involves out-of-town proceedings or client meetings that require significant time away from the office.

8. Time Your Invoices at the Right Moments

It’s best to time your invoices to coincide with moments when the client values your service the most — perhaps right after a major court victory or upon delivering a crucial set of documents that significantly advance their position.

Sending an invoice during such a high point increases the likelihood that your bill will be settled swiftly as the client’s satisfaction with your service peaks.

Additionally, align your billing with your client’s payment cycles. By scheduling invoices to arrive just before their financial review periods, you can reduce the waiting time for payments. For example, if your client typically processes payments on the 1st of each month, aim to have your bills reach them by the 24th. This practice ensures your invoices are at the top of the pile, ready to be processed first. 

9. Offer Multiple ePayment Options

In a recent ABA survey, 40% of clients admitted that they would never hire a lawyer who doesn’t accept credit and debit cards. Clearly, offering electronic payment options is basically a requirement to thrive in today’s digital age.

Plus, facilitating electronic payment options can significantly speed up the payment process. For example, a system like Bill4Time Payments, native to Bill4Time legal software, streamlines the payment process by linking billing and payment functions into a single platform. You can easily send clients payment links via an email, text, or the client portal, allowing them to pay invoices directly through the interface where they review their billing details.

10. Automate as Much of the Billing Process as You Can

Automating elements of your billing process is an effective strategy to ensure timely and accurate billing. Within platforms like Bill4Time, certain automation features can significantly reduce manual entry and minimize errors. For example, you can set up recurring billing for ongoing cases, which automates the invoice generation process based on a predefined schedule.

Another practical use of automation within Bill4Time is the automatic late fee calculation. If you’ve ever wondered how to calculate billable hours with late fees, Bill4Time can do the heavy lifting for you. If an invoice goes unpaid past its due date, the system can automatically apply a predetermined late fee. This process incentivizes timely payments and maintains cash flow without the need for manual monitoring. 

How to Bill More Hours as a Lawyer

Maximizing your billable hours not only boosts profitability but also reflects the true extent of your efforts on behalf of your clients. To enhance the effectiveness of your billing practices, consider these tailored strategies that complement the rigorous demands of legal work.

• Prioritize self-care: Maintaining work-life balance is essential for lawyers to prevent burnout. For example, research by Christina Maslach, a well-known psychologist, emphasizes the importance of enhancing social support at the workplace, such as creating mentorship programs or peer support groups to provide emotional and professional support.
• Batch similar tasks: Organize your day by grouping similar legal tasks, like reviewing case files or drafting related legal documents. This process minimizes context-switching and promotes deeper focus.
• Limit non-essential meetings: Consolidate your meeting schedule to only meetings directly impacting client outcomes or case progression. Implement succinct, agenda-driven meetings to maximize efficiency.
• Regularly update case progress: Keep your clients informed with frequent updates. These updates build trust and justify the ongoing work and associated costs, particularly during prolonged cases.
• Monitor your productivity: Use software that tracks how much time you spend on different tasks. This technology helps identify less obvious billable tasks and ensures accurate billing for brief client consultations or quick legal research.
• Set clear daily goals: Aim to meet a daily minimum of billable hours. Setting tangible goals can provide motivation and help you maintain a steady pace, reducing the risk of underutilizing billable hours.
• Capitalize on cross-practice expertise: When cases intersect with other legal specialties — like a divorce matter involving a real estate transaction — offer to manage these aspects. This practice broadens your billable hours and enhances client service by providing comprehensive legal guidance.

Remember, consistency in billing more hours is as important as increasing the number of hours billed. By staying vigilant and proactive, you can significantly enhance your productivity and ensure that your billing practices keep pace with your professional output.

How Can I Reduce Non-Billable Hours?

Every attorney faces the challenge of implementing non-billable hours best practices. Reducing these hours can dramatically increase your efficiency and overall profitability.

A first and crucial step is to clearly define billable vs. non-billable for your firm. What counts as non-billable hours, exactly? These tasks include:

• General clerical work (filing, photocopying, etc.)
• Travel time not specific to a client’s case
• Training sessions for new software or procedures
• Internal meetings not related to client-specific cases
• Organizing physical or digital files
• Scheduling appointments
• Managing non-billable employees
• Volunteer legal services
• Routine email checking not specific to client cases
• Preparing and delivering internal presentations
• Time spent on billing and invoicing
• Office management tasks
• Reading and responding to general professional correspondence
• Website updates and marketing content creation
• Employee reviews and HR activities

Additionally, consider tracking your non-billable time along with your billable time. Software like Bill4Time allows you to track both, giving you comprehensive insights into exactly where your time is going. From there, you can make adjustments like reallocating resources or further training for junior staff on tasks like preliminary research, allowing senior lawyers to dedicate more time to complex, billable work.

How Many Billable Hours Are Realistic?

The number of billable hours can vary widely depending on the type of practice, the firm’s size, and the individual lawyer’s role within the firm. Let’s break billable hours down a bit further below.

How Many Billable Hours Are Realistic in a Year?

Recent research from the National Association for Law Placement (NALP) shows a general increase in both total hours worked and billable hours across various firm sizes. 

For instance, in larger firms (701+ attorneys), average billable hours rose from 1,817 to 1,873 over a year, reflecting an increase in workload and possibly efficiency improvements or increased client demands. 

Smaller firms (101-250 attorneys), however, reported virtually unchanged billable hours, averaging around 1,752 to 1,757 annually. This suggests that smaller firms may have more stable year-over-year billable hours expectations.

How Many Billable Hours in a Month?

Translating the annual data into practical targets monthly, attorneys in larger firms might aim for approximately 156 billable hours (based on 1,873 annual hours), while those in smaller firms should consider around 146 hours monthly (based on 1,752 annual hours). 

How Many Billable Hours Are Normal for a Week?

Weekly, the data indicates that lawyers should target around 36 to 39 billable hours to meet the higher end of the annual spectrum observed in larger firms. For smaller firms, aiming for about 34 to 36 hours per week aligns with their yearly averages.

This breakdown can help you plan your workload more evenly throughout the year and manage your time effectively.

How Do You Master Billable Hours? With Bill4Time

As you implement these billable hours best practices, consider the benefits of leveraging a specialized legal billing platform like Bill4Time. This software eases the complexity of tracking and logging billable hours and improves the way you manage invoices.  

If you’re a legal professional striving to hone your billing methods, it’s time for Bill4Time. Start with a free trial and see the positive impact on your practice’s efficiency and financial outcomes.

Legal professionals are always up against the clock — there’s always more that can be done in a day, but not enough time to do it all. As a result, many lawyers just put in the time instead of finding more efficient methods, like using legal time tracking software.

Some of the most common challenges law firms face are time wasted on administrative tasks, new client acquisition, cost control, and expense growth. Many of these time-consuming tasks can be automated with modern legal technology. As an industry that bills by the hour, these inefficiencies can mean significant revenue loss.

Lawyers do a lot of work on computers, so adopting modern technology practices only makes sense. Time tracking software can run in the background to properly track time and improve law firm processes.

Here are 6 advantages of digital time tracking for lawyers.

1. Tracking Potential Lost Revenue

Automated timekeeping tools take a lot of the error, stress, and — ironically — time out of the tracking process. These solutions can track both billable and non-billable hours, so lawyers can see where they’re losing valuable time on unrelated tasks that impede the workflow.

Data is important for improving law firms as businesses. For example, a lawyer charging $200 an hour may forget to bill for an hour’s worth of small tasks each day, which is $200 lost in a day. Assuming that happens at least once a week, that’s a potential loss of over $10,000 a year! Digital time tracking can ensure that this time is billed and paid for for more accurate revenue.

2. Revealing Inefficiencies

Legal time tracking software not only tracks the billable time that isn’t billed, but it reveals what lawyers spend their time doing. Many law firms have lawyers spending time on non-legal business activities, such as marketing, accounting, and administration.

If the digital time tracking shows a lot of time spent on non-billable activities, leading to a loss of revenue, a law firm can outsource those activities. For example, law firms can hire an accountant, administrative assistant, or marketing professional for in-house work, or delegate tasks to contract workers during busy periods.

Attorneys can also use legal technology solutions for automating more tedious tasks, like electronic payment processing and bookkeeping services to generate invoices. Ideally, law firms will choose software specifically designed for legal professionals to maintain compliance with rules of professional conduct.

3. Improve Billing Accuracy

Lawyers at both boutique and large law firms typically bill by the hour, but the time spent on client cases doesn’t always consider face-to-face meetings with defined timeframes or scheduled phone calls that run over.

Proper time tracking and billing must include the time spent on tasks like:

• Telephone calls
• Case research
• Emails
• Lead follow-up
• Witness interviews
• Trial preparation
• Travel to and from meetings

Without clear and organized time tracking, lawyers may struggle to create accurate timesheets. This not only ensures that lawyers are billing for all their time but offers a detailed invoice for transparency and trust with the client.

4. Mobile Access

On-the-go lawyers struggle more with timekeeping, but legal software solutions offer mobile apps to help with tracking time outside of the firm. Many legal software solutions have corresponding mobile apps, which are perfect for on-the-go lawyers. Depending on the nature of a case, a lawyer may be running between the courtroom, the law office, lunch meetings, or the library for research.

Whether in the office or in the field, timekeeping apps track hours accurately and update in real-time in a secure, centralized cloud database.

5. Customizable Reporting

Different law firms face different challenges with efficiency and accuracy, so a one-size-fits-all approach may not work. Digital time tracking solutions offer customizable reports to pull data and view it in simple visualizations for managers and team members to interpret.

Managers can view just about any aspect of the firm’s performance, including work-in-progress, outstanding balances, time spent with a specific client, all calculated by user, client, or project.

6. Time-Saving Features

Legal time tracking software offers many features to improve efficiency and workflow, such as:

Automated timers that allow users to start and stop time, rather than tracking it manually. Meetings run over and people forget to stop the clock, so having a legal time tracking software ensures that the tracking is as accurate as possible. Some systems also allow tracking multiple tasks, so users can easily stop tracking time for one task and toggle to another quickly and easily.

Voice commands allow users to stop or start timers without needing to be near the computer. Most people speak faster than they type, so having voice commands captures time quickly and easily. Entries can be edited and synced to client management systems as well.

Built-in payment processing, which is included with Bill4Time, can save your firm time and money while other software systems use integrations or costly third-party software. If a law firm devotes a lot of time to billing and processing without a dedicated accounting process, having these features makes the processes smoother and more efficient.

Customization features that allow lawyers to create detailed reports and invoices for consistency and continuity. Personalized reports offer virtually limitless options for time and billing data, all with custom filters and optional views to get a holistic picture of the firm’s operations.

What Is the Easiest Way to Track Time as a Lawyer?

Legal time tracking software is the best way to track time as a lawyer. Implementing timekeeping solutions, like Bill4Time, helps law firms identify inefficiencies, choose tasks to outsource, track individual lawyers’ time, and bill clients accurately for better revenue and success.

Digital time tracking for lawyers offers limitless options for efficiency and accuracy. Bill4Time offers legal technology solutions for legal professionals to track time, manage clients, track expenses, and more. Schedule a demo today to see how digital timekeeping solutions can help!

Customer service for law firms is key to generating and retaining a strong book of business. Many firms believe providing great service stops at winning a case, but for clients, it’s much more than that. Taking the time to evaluate your processes to ensure you ‘wow’ each of your clients will yield a greater return for your firm in the long run.

If you’re unsure where to start, continue reading to unlock the 4 keys to a successful customer service strategy.

Key #1: Maintain consistent and broad communication 

To communicate effectively, you’ll need to identify your two important details:

1. Client expectations: What sort of information do your clients want from you (e.g., documents, product updates, responses, etc.)? How often do they want to hear from you? Who needs to hear from you? Is it a single point of contact, a small group of decision-makers, or a Board of Directors? 
2. Client communication style: Your client communication style determines how you communicate with your clients. Here’s a brief table outlining three common communication styles.

You’ll need to identify these details and add them to your client intake process well before your client’s matter is underway. 

	Traditional	Contemporary	Future-focused
Availability	During office hours	On-demand	Proactive, available 24/7
Preferred channels	Phone, in-person	Traditional + digital	Fastest available channel
Data requirements	Just the essentials	Everything I need to know	Access to all data, on an as-needed basis

Your client may have traditional availability, future-focused communication channels, and contemporary data requirements. These details need to be flushed out ahead of time, during your firm’s intake process. This is how you provide your clients with the communication that best suits their needs.

Key #2: Relationship matchmaking

Your clients will likely have a mix of the big five personality traits. These personality traits determine whether your partners and associates will “click” with clients: 

• Openness: Clients who are high in openness have a greater degree of intelligence and intellectual curiosity. These individuals and firms value knowledge, competence, experience and data more than other personality types. Truth-telling is always important but it’s especially important with these clients due to their intelligence and natural curiosity.
• Extraversion: These clients are outgoing and skilled connectors. They value relationships and the activities that build these relationships – rounds of golf, dinners, events, etc. These clients are best matched with an extroverted partner or associate in your firm. 
• Agreeableness: These clients are cooperative, easy to work with, polite and compassionate. They’re not always as honest, open or transparent as they need to be due to a strong fear of conflict.
• Conscientiousness: These clients are highly self-disciplined. They’re reliable, trustworthy, organized and efficient. They look for well-planned and properly executed projects and matters. These clients are often traditionalists, people who prefer to do things the way they’ve always been done. 

These details matter because they can help you figure out your client’s personality and how they may interact with you. It’s best if your client’s point of contact, a partner or associate, matches your client (point of contact). I realize this isn’t always feasible, especially for small and one-person firms. In those cases, you’ll need to be all things to all clients.

If your client is agreeable, work with them, be agreeable. Have a conscientious client, but you’re not as conscientious as you’d like to be? Recruit a virtual assistant who can help you produce the results your client needs to feel secure. Customer service for law firms is about meeting clients where they are and building of what is in their best interest.

Key #3: Display competency at multiple levels

Your clients want the best attorney money can buy. You’re a credentialed and highly educated legal professional. Prospective clients assume that about you because you’re knowledgeable, you attended law school and you have lots of experience. This kind of credibility is helpful but it’s even better presented when you have demonstrated yourself as a thought leader or educator.

In addition to the broad competency we’ve just covered, you need to provide the following:

• A demonstrated ability to simplify complex information
• Demystify the law/make it simple
• Explain the available options to your client in a way that simple and concise
• A professional distance (i.e., no inappropriate schmoozing)
• Set and meet deadlines

These details are simple, but they’re not always easy to relay to your client. Especially when it comes to discussing legal terminology. Clients want an attorney who understands the law but has the competency to bring it down to their level.

Key #4: A strong value proposition goes farther than you think

Rightfully, clients expect transparency when it comes to the price of your services. It matters to a certain extent, but what really matters more is value. A strong value proposition means your clients are willing to spend more money with you than they would with a competitor.

What’s a value proposition?

“The value a company promises to deliver to customers should they choose to buy their product. A value proposition is also a declaration of intent or a statement that introduces a company’s brand to consumers by telling them what the company stands for, how it operates, and why it deserves their business.”

A strong value proposition acts as an economic moat. With an economic moat, it’s difficult for clients to leave (they don’t want to) and harder for competitors to attack your firm. 

• The brand moat. With the brand moat, customers are willing to pay more for your service because of what they get in return (e.g., prestige, reputation, quality, etc.) — the brand recognition from firms like Cravath, Swaine & Moore. 
• The secret moat. Intellectual property – copyrights, patents, trademarks, trade secrets – anything that fits into these categories makes it difficult for competitors to compete with you. Amazon’s one-click, Google’s search algorithm and KFC’s secret recipe are all secrets.
• The toll moat. This means you have exclusive control over a market or niche. You’re the only game in town, so if customers want it, they’ll have to come to you. It’s Google’s search algorithm and its accurate search results.
• The switching moat. Businesses with a strong switching moat are tangled up in their customer’s daily life. Amazon continually adds free products and services to Amazon Prime. Customers fill these services with their data, making a separation incredibly difficult. The more clients depend on your law firm, the harder it is for them to walk away

These moats are creating in two ways: (1.) Doing what other firms can’t (2.) Doing what other firms won’t. The legal industry is a bit more constrained in this area, but that doesn’t mean it’s insurmountable. Provide customers with a greater level of service, quality of support and you have the tools you need to create exceptional customer service value.

Customer service for law firms starts with value

As you can see, delivering exceptional customer service at your law firm doesn’t require a heavy lift. If anything, it’s expanding on processes you already have in place, such as intake. Using client intake as a deep dive into a client’s needs, communication style, personality, etc. will make providing great service simple.

Try implementing the four keys to customer service in your practice and you’ll find it’s easy to attract and retain the outstanding clients your firm needs to grow. 

The concept of billable hours versus actual hours plays a pivotal role in defining both the economic health and operational efficiency of law firms. 

Billable hours are the hours law firms charge their clients for, directly affecting their revenue. Conversely, actual hours encompass all work done by lawyers and staff, including non-billable tasks such as administrative duties and client relations.

Understanding the balance between these two types of hours is essential for legal professionals when evaluating career growth, assessing firm stability, or looking to improve workplace efficiency. 

Effective management of these hours is key, and many legal professionals leverage technology to keep accurate records and analyze their work distribution. Legal time tracking software, for instance, can simplify this process, helping attorneys identify areas where they can optimize their billable hours while ensuring they maintain a balanced workload.

As we further explore the nuances of legal billing, upcoming sections will cover topics like:

• What are billable hours vs. actual hours, exactly? 
• How do I define billable and non-billable hours? 
• What are some examples of non-billable hours and billable hours?
• What’s the best way to calculate a billable hour when tracking my time?
• What should my billable rate be in relation to my salary?
• How can I get my billable hours up?

We’ll break down these elements, offering actionable insights to enhance your practice’s efficiency and profitability.

What Is the Difference Between Billable Hours vs. Actual Hours?

Billable hours are the hours that you can charge to a client. These are directly tied to revenue and usually include time spent on tasks like research, drafting documents, and court appearances that directly advance a client’s case. Because your clients pay for billable hours, it’s essential that your firm properly tracks them to keep profits up.

Actual hours include all the time you work, not just what you can bill. This broader category encompasses billable tasks plus additional non-billable activities (more on billable vs. non-billable hours in the next section). For example, if you spend 10 hours working one day, you will likely only spend a portion of that time on tasks you can bill to a client.

When considering the realities of working in a law firm, it’s important to understand how much of your time you can realistically bill to clients. Non-billable time isn’t wasted — these activities are essential for running a successful practice and developing your skills as a lawyer. However, they do not generate direct revenue, and managing the balance between billable and actual hours is a critical skill in legal practice management.

Non-Billable Meaning vs. Billable Meaning

Within your actual hours will be billable and non-billable hours. Non-billable hours are time spent on tasks necessary for your practice but not chargeable to any client. 

Attorneys determine their billable hours and fee structures primarily based on ethical standards outlined by the American Bar Association (ABA) and state-specific rules. 

For example, many attorneys would look to the ABA’s Model Rules of Professional Conduct Rule 1.5 for initial guidance:

• Lawyers are prohibited from charging or collecting unreasonable fees.
• In assessing the fairness of a fee, considerations include the customary charges in the locality for similar legal services, the amount of time required, and the lawyer’s experience, among other factors.
• Lawyers must disclose their fee structure to clients early in the client-attorney relationship to prevent misunderstandings.

And then they look at any state-specific rules, like these two examples:

• California’s Rule 1.5 includes a rule that states, “Unconscionability of a fee shall be determined on the basis of all the facts and circumstances existing at the time the agreement is entered into except where the parties contemplate that the fee will be affected by later events.“
• Texas’s Rule 1.04 gets specific with this rule: “A lawyer shall not enter into an arrangement for, charge, or collect a contingent fee for representing a defendant in a criminal case.”

These rules are set to ensure transparency, fairness, and ethical billing practices among law firms across the U.S.

Still, it can be tricky to determine billable vs. non-billable hours. While the differences and billable hour requirements by firm may differ, we’ll discuss what you can generally bill for below.

What Counts as Billable Hours? 

Billable hours include the time legal professionals dedicate directly to handling client matters. While the scope of what can be considered billable varies across firms, the following tasks are generally billable:

• Initial Consultations: Meeting with a prospective client to discuss their case.
• Document Preparation: Drafting legal documents, contracts, briefs, and pleadings.
• Document Review: Analyzing and revising legal documents received from opposing parties.
• Legal Research: Investigating case-relevant laws, precedents, and regulations.
• Case Strategy Development: Crafting strategies for case management and litigation.
• Client Communications: Exchanging information with clients via emails, calls, or meetings.
• Court Appearances: Attending trials, hearings, and other court proceedings.
• Mediation and Arbitration: Representing clients in alternative dispute resolutions.
• Depositions: Preparing for and conducting depositions.
• Settlement Negotiations: Discussing and negotiating settlement terms.
• Trial Preparation: Organizing case materials and strategies for trial.
• Witness Preparation: Coaching witnesses for depositions or trial testimony.

What Is an Example of a Non-Billable Hour?

A non-billable hour refers to time spent on activities that support the operations or development of a law firm but cannot be directly charged to a client. Some examples of non-billable hours include:

• Internal Meetings: Time spent in staff meetings that don’t directly involve client cases.
• Clerical Work: Organizing files, photocopying, and other clerical duties not specific to a client’s case.
• Training Sessions: Attending in-house training or continuing legal education (CLE) courses.
• Business Development: Engaging in networking events or marketing activities to attract new clients.
• Mentoring: Time spent mentoring junior staff or interns without direct client involvement.
• Pro Bono Work: Providing legal services voluntarily without charging a client.
• Researching Legal Software: Looking into new technology for your law firm that is not client-specific.
• Reading Industry Publications: Keeping up-to-date with legal journals and news that are not case-specific.
• Preparing Invoices: Compiling billing information and preparing client invoices.
• Website Maintenance: Updating the firm’s online presence, including blogs and social media, without direct client service.
• Staff Recruitment: Time spent interviewing potential new hires or reviewing resumes.
• Performance Reviews: Conducting or participating in performance evaluation meetings.

How Do You Calculate a Billable Hour? 

To calculate a billable hour, you record the time devoted to direct client services and then apply your hourly rate to that time. There are a few steps involved in calculating your billable hours, such as:

Having a Billable Hours Chart Handy 

If you bill in the standard 6-minute increments, using a billable hours conversion chart like the one below is quite helpful. These charts break down minutes into tenths of an hour, so you can easily convert time to a decimal. Eventually, converting your time will become second nature.

For example, if you worked 14 minutes on a task, you can see on the chart below that that converts to 0.3 hours.

Tracking Your Time

Tracking time accurately is crucial for ensuring proper billing. Here are several methods that attorneys might consider:

• Digital Tracking: Using attorney time tracking software is highly effective and reduces errors.
• Manual Logging: Daily logging of tasks on a calendar or in a digital document like Excel or Google Sheets can serve as an alternative, though it’s less efficient.
• Communications Review: Periodically reviewing emails and call histories can help reconstruct time spent on client-related activities, although you can miss hours with this method.

Tracking your time with legal software is usually your best bet for capturing every billable moment. Bill4Time, for example, allows attorneys to track their time as they work with handy on-screen timers or enter their time manually after a task is complete.

Rounding Up

Attorneys often round up to the nearest allowable increment to ensure they are compensated for the total time spent on a task. For example, if a task takes 43 minutes, rounding up to the nearest tenth of an hour (0.8) is common practice rather than billing for 0.7 hours.

Multiplying by Your Billing Rate

Finally, multiplying the rounded decimal hours by your hourly rate determines the fee. For instance, if the billing rate is $300 per hour and the task duration is 48 minutes (0.8 hours), you would multiply $300 by 0.8 for a total of $240 earned. 

While manually calculating your billable hours is possible, it’s time-consuming and can be inaccurate. It’s even worse when you try to do it from memory at the end of a long week. Alex Dimitrief, a prominent trial lawyer with extensive big law experience, emphasizes the pitfalls of delayed time tracking:

“Lawyers who catch up on time at the end of a billing period with vaguely-worded guesstimates are also not doing right by their colleagues. The belated recording of stock time entries often results in billing for less time than a lawyer actually worked and prevents the firm from gaining meaningful insights from its data.”

Using software like Bill4Time can help you avoid these pitfalls. Bill4Time’s robust time tracking features are designed to meet the unique needs of legal professionals, ensuring no billable minute is overlooked. You can see exactly how it works with a free trial.

How Much of Your Billable Rate Should Be Your Salary? 

Determining your billable rate and salary involves a careful balance between understanding your costs, the value you provide, where you are located, and your practice’s financial goals. Let’s walk through this process step-by-step.

Step 1: Identify and Add Up Your Overhead Costs

Start by listing all your operational expenses. Below are some typical overhead expenses an attorney may incur with some hypothetical costs per month:

• Office rent – $2,500
• Utilities (electricity, water, internet) – $400
• Administrative and support staff salaries – $5,000
• Legal research subscriptions – $250
• Professional liability insurance – $80
• Continuing legal education (CLE) fees – $50
• Marketing and advertising expenses – $500
• Office supplies and equipment – $200
• Technology costs (computers, legal software subscriptions) – $250
• Travel expenses related to client meetings or court appearances – $170

Adding these expenses together, your total monthly overhead would be approximately $9,400.

Step 2: Analyze Market Rates and Define Your Competitive Edge

Understanding the market rates charged by peers in your legal specialty and geographical area is critical. This insight helps you set a competitive rate that reflects your unique qualifications and experience. You can gather this information by:

• Consulting professional associations and networks. Many legal professional associations, like local bar associations, conduct and publish annual surveys detailing average billing rates across various specialties and regions. 
• Using online legal services platforms. Platforms such as Martindale-Hubbell, Avvo, and LegalMatch allow you to view profiles of other attorneys in your area, including their specialties, client reviews, and sometimes even their billing rates.
• Attending industry conferences and seminars. These gatherings are excellent for learning about the latest trends and challenges in your field of practice. 
• Conducting informal peer consultations. Reach out to colleagues and mentors to discuss their experiences with billing. 
• Analyzing competitor marketing and client engagement strategies. Pay attention to their online presence, including websites and social media. This data can tell you a lot about their target clients, the complexity of cases they handle, and their market positioning.

For instance, if you discover that most attorneys in your city with similar skills charge between $300 and $450 per hour, and you possess specialized knowledge or certifications, you could set your rate closer to $450. This higher rate reflects the additional value you bring to clients.

Step 3: Factor in Your Qualifications and Experience

Your experience, reputation, and area of specialization are significant determinants of your billable rate. For instance, if you are a lawyer with over ten years of experience in corporate law with a track record of high-profile case wins, your rate should reflect this. 

Consider also your operational efficiency and client satisfaction levels, which can command a premium in your billing. Your rate should cover costs and signal your market position as a top-tier attorney.

Step 4: Set Financial Goals and Calculate Your Desired Salary

Decide on a target annual income based on your personal financial goals, professional growth aspirations, and market standards. 

For example, if aiming for a salary of $150,000 a year is aligned with your expertise and years of practice, calculate your required billable rate by adding your overhead costs and a profit margin to your salary needs. Here’s how to do so:

1. Determine Your Annual Overhead: If your monthly expenses are $9,400, your annual overhead costs would be $9,400 x 12 = $112,800.
2. Set Your Annual Salary Goal: You’ve decided on a target salary of $150,000 per year.
3. Include Desired Profit Margin: You want a 25% profit margin on top of your combined salary and overhead costs. First, add your salary and overhead: $150,000 (salary) + $112,800 (overhead) = $262,800. Next, calculate 25% of this amount for the profit margin: 25% of $262,800 = $65,700.
4. Calculate Total Needs: Add your profit margin to the sum of your salary and overhead to get the total amount you need to generate: $262,800 + $65,700 = $328,500.
5. Determine Billable Hours: You may ask yourself, is 1,800 billable hours a lot? Consider that you’ll need some downtime, and managing a strong work-life balance is important to your success. If you have to wonder how many billable hours are too much, you may be overworking yourself. The National Association for Law Placement (NALP) also reports on average billable hours for lawyers, which you can check for a good starting point. For this example, let’s say you plan to bill 1,500 hours a year (approximately 30 billable hours per week).
6. Calculate Your Billable Rate: Divide your total financial needs by your billable hours to determine your hourly rate: $328,500 / 1,500 hours = approximately $219 per hour.

In this example, charging at least $219 per hour will cover your salary, overhead, and desired profit margin.

Step 5: Regularly Review Your Pricing Strategy

The legal market and your practice needs will evolve, so you will need to regularly review your billing structure. Stay up-to-date on changes in market demand, legal technology advancements, and your own practice’s growth or specialization changes. 

Annual or bi-annual reviews can help adjust your rates to remain competitive and profitable, ensuring they accurately reflect your current practice status and market conditions.

How To Increase Billable Hours 

One proven strategy for boosting billable hours without reducing service quality is using legal software like Bill4Time. You can see how it works for yourself with a free trial.

Traditional time tracking methods — using spreadsheets or written logs — often lead to lost hours, inaccuracies, and valuable time spent on non-billable tasks. Plus, trying to reconstruct days or weeks of activities at the end of a billing period can result in underreporting, affecting both revenue and insight into work patterns.

Bill4Time addresses these challenges with real-time tracking that captures every minute as it happens, eliminating the inaccuracies associated with delayed logging. Its intuitive interface works on multiple devices, ensuring accurate tracking both in and out of the office.

Bill4Time also generates detailed reports that highlight time spent patterns, providing strategic insights into managing tasks and billable objectives. For example, excessive hours spent on research might indicate the need to delegate preliminary research tasks to paralegals or junior staff.

Finally, integrating Bill4Time into your practice supports not just individual lawyers but entire teams. It streamlines case management processes, enhances transparency with clients through clear and detailed invoices, and supports compliance with the stringent ethical standards required in legal billing.

Want to see how Bill4Time could very well be your next step toward a more profitable and efficient practice? Get started with a free trial today!

Efficient time management allows attorneys to handle their caseloads effectively by setting clear priorities and deadlines while also preserving time for unexpected client needs. By segmenting their day into dedicated time slots for research, casework, client consultations, and administrative tasks, lawyers can maintain a balanced schedule that maximizes productivity.

Incorporating legal time tracking software becomes a powerful asset in this context. This technology simplifies logging billable hours and supports the broader practice of time management itself. It ensures that each consultation, each period of research, and each administrative action is accounted for and billed accurately.

Continue reading to discover strategies that fine-tune time management, how software can help, and a few billable hours best practices for better time management.

Why Is Time Management Important for Lawyers?

Lawyers rely on time management to ensure they can dedicate appropriate attention to each case and uphold their professional responsibilities. From client communication to court appearances to firm responsibilities, lawyers have to juggle a lot of responsibilities each day — not to mention hitting target billable hours in many firms.

But how many hours does a lawyer work per day? Working hours for lawyers can vary widely. Those employed by large firms often face weeks that can stretch to 66 hours, requiring exceptional organizational skills to manage such a demanding schedule.

In smaller and medium-sized firms, lawyers may experience a bit more variability, with workweeks ranging from 42 to 54 hours, which still requires careful planning to balance case work with administrative duties. Lawyers in government agencies typically align with a standard 40-hour workweek, though the nature of legal work can extend these hours at times.

No matter the setting, lawyers must be adept at organizing their schedules to meet case deadlines, prepare for appearances, and meet the needs of their clients, who may require assistance at any hour. It is a balancing act that calls for meticulous time management, especially for those who provide on-call access to their clients around the clock.

What Do Lawyers Do Most of the Day?

For lawyers, the rhythm of a workday is guided by the need to balance a broad array of tasks with the precision and urgency that the legal profession demands. Whether drafting documents, conducting client meetings, or managing unexpected challenges, effective time management is the thread that ties these varied responsibilities together.

A lawyer’s day often comprises:

• Communication with clients and peers to keep cases moving forward.
• Consultations that help lawyers understand client needs and formulate legal strategies.
• Serving as a trustee or advisor, roles that require careful time allocation to honor commitments.
• Court appearances, where efficiency is key to file or present case materials promptly.
• Preparation of legal documents, which demands focused blocks of time for meticulous work.
• Research into case law and evidence, requiring uninterrupted periods for in-depth analysis.
• Oversight of support staff to delegate tasks appropriately and ensure firm-wide coordination.
• Collaboration with opposing counsel, which often involves back-and-forth negotiations.
• Fine-tuning settlement agreements, a task that combines analytical skills with timely execution.
• Formulating arguments for court, a process that blends creative thinking with strategic planning.

Managing such diverse and complex tasks, lawyers find that time is one of their most precious resources. The ability to quickly shift focus between tasks, while ensuring each receives due diligence, is facilitated by robust time management strategies. 

Without proper time management, organization, and a sense of prioritization, it’s easy for time to slip away while multitasking. Thankfully, software like Bill4Time empowers attorneys to track their time with precision, allocate tasks with clarity, and schedule their commitments effectively, enabling them to focus more on their clients and less on the clock.

See how Bill4Time can support time management for lawyers with a free trial.

Time Blocking for Lawyers (With an Example)

Multitasking is one of the biggest challenges for lawyers and can waste more time than it saves. It’s natural to juggle tasks and flip between client calls or firm emails, but that’s the enemy of productivity. When you’re interrupted, it takes time to get back into what you were doing — losing precious minutes each time.

Time blocking, also known as block planning, is an effective productivity technique that limits distractions and interruptions by dividing the day into blocks of time with specific activities in each block. Your time is predetermined, allowing you to focus completely on each task at a time before moving on to the next.

Some benefits of time blocking include:

• Enhanced productivity: Time blocks encourage complete focus instead of multitasking, so you can avoid distractions and interruptions to complete your work faster.
• Better organization: With advanced planning, time blocks ensure that you account for all the tasks you need to complete, in order of priority, and stay on top of important work.
• Increased control: While you can’t control every interruption that may come your way, time blocking gives you more control over how and when you complete your work.
• Improved focus: Building in time for deep thought with important tasks protects your time, gives you the freedom to focus completely, and keeps you from rushing and making mistakes.

Here’s an example of a time blocking for lawyers template that outlines a typical day in a law firm with time blocks:

• 8:00-8:30 am – Review of daily goals and key tasks.
• 8:30-9:00 am – Check emails for overnight developments.
• 9:00-10:00 am – Deep dive into case research for upcoming litigation.
• 10:00-10:15 am – Take a short break, which can increase productivity.
• 10:15-11:00 am – Client consultations, offering advice and updates.
• 11:00-11:15 am – Time reserved for returning calls or addressing urgent emails.
• 11:15-12:00 pm – Preparation for afternoon meetings or court appearances.
• 12:00-12:45 pm – Lunch.
• 12:45-1:00 pm – Quick catch-up on correspondence.
• 1:00-2:00 pm – Drafting or reviewing legal documents
• 2:00-3:00 pm – Meetings with colleagues or support staff to align on tasks.
• 3:00-3:15 pm – Short break to recharge.
• 3:15-4:00 pm – Continued case work or document drafting.
• 4:00-4:15 pm – Administrative tasks and team updates.
• 4:15-5:00 pm – Planning for the next day; setting up tomorrow’s priorities.
• 5:00-5:30 pm – Final email check to ensure all urgent matters are addressed.

This template provides a detailed and structured outline that also includes buffers and breaks, acknowledging the need for flexibility in a lawyer’s dynamic day. If this schedule feels too rigid, you could also create one with wider time blocks that offer a bit more flexibility, like this:

• 8:00-9:00 am – Begin the day with planning and reviewing urgent communications.
• 9:00-12:00 pm – Block for client consultations, case research, and document drafting.
• 12:00-1:00 pm – Lunch and personal time to refresh.
• 1:00-4:00 pm – Continued case work, meetings, and collaboration with staff.
• 4:00-5:30 pm – Administrative tasks, review for the next day, and closing out communications.

Your day-to-day tasks may differ, but this example shows how time blocks can be used to group similar tasks together, organize your day, and stay on track with your priorities. If you run a firm with multiple lawyers, you may even consider implementing time management training for lawyers to encourage this practice throughout your firm. 

Taking Control of Your Time With Bill4Time

Time management skills and techniques are useful on their own, but you can work even smarter and give more attention to your billable time with legal practice management software like Bill4Time. With an array of features to simplify workflows and maximize productivity, you can manage your time better and ensure you’re always on top of urgent tasks.

Bill4Time has features like project-level task lists to create and assign tasks for specific projects or cases, organize them by priority, and delegate them to the appropriate team members. With automated workflows that are customizable to your firm, every member of the team is aware of their responsibilities and due dates from intake to completion.

To save even more time, you can convert any of your completed tasks into time entries, ensuring that you capture every minute of billable time.

Want to experience Bill4Time for yourself? Sign up for a free trial to explore features and see how Bill4Time can improve your firm’s time management and productivity. 

For law firms, having processes to accurately track time is crucial to the success of the entire practice. Proper lawyer time tracking helps firms bill accurately, measure profitability, and identify areas where efficiency can be optimized.

Small law firms are anticipating a 56% increase in demand for legal services. Correspondingly, it’s essential for law firms to implement automated solutions to capture time without hindering productivity.  

In this comprehensive guide, we will explore the importance of precise lawyer time tracking, how to overcome common time tracking challenges, and how to choose the best legal time tracking software to support your business.

Before we get started, here’s a list of what’s to come:

• Why Time Tracking Is Important for Lawyers
• How Do Attorneys Keep Track of Time?
• Importance of Accurate Lawyer Time Tracking
• Why Lawyers Struggle With Time Tracking
• Ethical Considerations for Lawyer Time Tracking
• Common Time Tracking Errors Lawyers Make
• Risks of Manual Time Tracking at Law Firms
• Advantages of Digital Lawyer Time Tracking
• What is Time Tracking Software?
• How To Choose the Best Time Tracking Software
• Time Tracking Software Features to Consider
• How To Standardize Legal Time Tracking at Your Firm
• Improve Your Firm’s Legal Time Tracking with Bill4Time

Why Time Tracking Is Important for Lawyers

To ensure you get paid accurately, it’s essential to track your time diligently. However, it’s not just about recording the hours you spend working, but also making sure that your records accurately reflect the time you dedicate to billable and non-billable tasks. 

Many lawyers make the mistake of mixing billable and non-billable hours, which can result in undercharging their clients for their work.

Undercharging not only undervalues your time and effort, but it can also have negative consequences for your firm in terms of ethics and client retention. While it may not seem like a big deal in the short term, the accumulated impact can lead to financial setbacks and falling behind on finances. 

It’s crucial to be meticulous in time tracking and accurate billing for all your work to ensure fair compensation and maintain the financial health of your firm.

What Are Billable Hours?

Billable hours account for the time spent on business matters that you will charge to your client based on a previously agreed-upon rate. Much of the financial success of your firm is contingent on your billable hours.

According to the aforementioned study from the Thomson Reuters Institute, 20% of small firms pushed work to staff with lower billable rates in 2022.

Now more than ever, it’s important to have the resources to determine how long certain tasks take you and accurately track them so you can bill your clients accordingly. 

Billable vs. Non-Billable Hours

Mixing up billable and non-billable hours can come back to bite you later down the line. It’s vital that you understand the difference so you can receive fair payment.

• Billable hours: The time you spend actively working on a case
  • Examples of common tasks include:
    • Drafting a contract
    • Researching laws relevant to a case
    • Attending meetings or court hearings
    • Building a case strategy
    • Managing client correspondence

• Non-billable hours: The time for which you cannot bill a client but is necessary for the life of the firm.
  • Examples of common tasks include:
    • Completing administrative tasks (e.g., collecting payments)
    • Continuing education
    • Attending seminars and networking events
    • Creating marketing strategies

How Do Attorneys Keep Track of Time?

Although attorneys must keep track of time, it can get complicated quickly. Interruptions can come from phone calls, having to break for team meetings, and taking care of daily firm responsibilities.

Many lawyers tend to use different tools to help them track their time, such as:

• Calendars
• Excel spreadsheets
• Pen and paper

Although these traditional methods can work, any process that requires manual entry, like Excel spreadsheets to track time, increases the risk of human error. You have a lot on your plate and even more on your mind, so relying on your memory and misplacing important documents isn’t worth the financial and professional risk.

Importance of Accurate Lawyer Time Tracking

Time tracking for lawyers influences several aspects of your business. Processes like invoice generation, billing, and determining rates all tie back to how accurately time was captured. 

Let’s explore the impact time tracking has across your practice: 

Improved Productivity

Accurate time tracking not only influences how your firm gets paid but also helps with task management and prioritizing work across the staff. When you understand how and where time is spent in your practice, you can make more informed decisions about your finances, legal service offerings, the types of cases your firm takes on, and how long it takes to complete certain types of cases. 

Accurate Scope of Work

By efficiently tracking time, firms can better report on staff and lawyer performance. This can assist with managing bandwidth and identifying areas of improvement in workflows. By having this information, firms can then accurately allocate resources and provide more accurate scopes of work for clients.  

Legal Billing and Invoicing

The success of a firm’s billing and invoicing all ties back to the process they use to track and manage time. By efficiently capturing time spent on client cases or other relevant case activities, firms can optimize billable hours and easily generate legal invoices that accurately reflect the services provided to clients. 

This level of transparency in a firm’s billing process minimizes the chance of disputes with clients and ensures that the firm is properly compensated.

Client Retention (Transparency) 

Maintaining transparent communication with your clients regarding the time spent on their cases can greatly impact client retention. By providing accurate and detailed invoices that clearly show the time spent on their case, you are showcasing your firm’s commitment to transparency and accountability. 

This fosters trust between you and your clients, and can ultimately enhance your brand’s reputation as a reliable and trustworthy legal service provider. All in all, clients appreciate transparency in billing practices. It can be a key factor in building long-term relationships and retaining clients for repeat business. 

Why Lawyers Struggle With Time Tracking

As a lawyer, you often have a lot on your plate with court hearings, conflicting deadlines, meetings, keeping up with client correspondences — the list goes on.  The sheer volume of tasks can be overwhelming and doesn’t account for administrative work. 

One major administrative burden for lawyers is tracking the time spent on each client’s case. Without automated processes, manual lawyer time tracking can be tedious and time-consuming, involving multiple steps to collect the time you worked. This not only takes up valuable billable time but also increases the risk of errors that can result in improper time tracking and billing.

To streamline your time tracking and billing process, consider using a dedicated time tracking software designed specifically for lawyers. The best time tracking software offers features such as automatic time tracking, task and project management, and integrated billing and invoicing that elevate the administrative burden that comes with traditional time tracking methods.

Don’t worry, we’ll dive more into time tracking software later in the guide so you know how to choose the best one for your firm. 

Ethical Considerations for Lawyer Time Tracking

Proper time tracking practices are important for law firms to ensure compliance and avoid legal and ethical violations. Lawyers are required to follow the rules and regulations set forth by The American Bar Association (ABA). Rules which are relevant to time tracking are Model Rules 1.5, 1.6, and 1.15.

According to ABA Model Rule 1.5 (b), lawyers must communicate the scope of representation, basis or rate of the fee, and expenses to the client preferably in writing, before or within a reasonable time after starting the representation. Any changes in the fee or expenses must also be communicated to the client.

The ABA also provides time tracking tips for lawyers, which include:

• Regularly reviewing time tracking sheets and bills to prevent accusations of padding or billing for more than 24 hours in a day
• Being vigilant when logging time for multiple cases on the same day and at the same time
• Avoid moving on to another client before completing the task at hand to maintain accuracy in time tracking

Common Time Tracking Errors Lawyers Make

Now that we know the risk of improper time tracking, here are the most common mistakes lawyers make when tracking their time: 

• Manual time tracking: Calendars, spreadsheets, and pen and paper are all manual ways to log and track time. Although there’s nothing inherently wrong with them, they are prone to time tracking errors. It’s easy to type in the wrong number, forget to log the hours, or even lose paper files that contain clients’ information.

• Delayed time entry: Many attorneys wait until the end of the day, week, or even month to log their hours. The longer it takes you to enter your time, the more likely you are to forget how much time you actually worked. Don’t be left scrambling with little time to review for discrepancies. 

• Not properly tracking non-billable time: Everything you do is for your clients, it’s easy to confuse billable and non-billable time. Being actively aware of the difference can help better structure the time and effort you dedicate to your clients.

Risks of Manual Time Tracking at Law Firms

Improper time tracking practices, like manual entry, can have various negative impacts on a law firm’s business, including:

• Billing Disputes: Inaccurate time tracking can lead to disputes with clients over billed hours, resulting in potential loss of revenue, strained client relationships, and increased administrative time spent on resolving disputes. This may also make it difficult to justify fees or expenses to clients, leading to the potential erosion of client confidence and reluctance to pay for services rendered.

• Reduced Profitability: Manual time tracking methods can reduce the accuracy of time tracking. This can result in underbilling or overbilling, leading to reduced profitability for your law firm as it may not accurately capture the value of the services provided or may result in lost revenue due to overcharging.

• Legal and Ethical Concerns: As mentioned, failing to accurately track time can raise legal and ethical concerns, potentially resulting in violations of professional conduct rules, penalties, fines, or even legal actions, which can harm the law firm’s reputation and financial stability.

• Damage to Professional Reputation: If your firm is flagged for ethical violations, it can damage your firm’s professional reputation. This could lead to negative word-of-mouth, loss of potential clients, and harm your firm’s overall presence in the legal market. 

• Loss of Client Trust and Loyalty: Clients expect transparency and accuracy when working with law firms. If clients notice repeat discrepancies in your time tracking billing practices, you risk losing repeat business and referrals. Both of which are leading business generation funnels for law firms. 

It is crucial for law firms to implement proper time tracking practices to mitigate these risks and maintain the integrity of their billing and financial processes.

Advantages of Digital Lawyer Time Tracking

It’s estimated that lawyers spend nearly half of their time completing non-billable, administrative tasks rather than practicing law. With digital time tracking, lawyers can streamline the time tracking process which also influences how quickly they generate invoices and verify their accuracy.

Here are a few benefits of digital time tracking: 

Increased Accuracy

Digital lawyer time tracking eliminates the risk of manual errors and provides accurate and reliable time tracking data. This ensures that lawyers and legal professionals can capture their billable and non-billable hours with precision, leading to accurate billing, improved invoicing, and reduced disputes.

Increased Productivity

Instead of wasting time hunting down where your time was allocated, digital time tracking allows you to easily allocate time to specific cases or activities. By categorizing how time is tracked, lawyers can identify areas where they can improve their productivity, prioritize their work, and manage their workload effectively.

Transparent Billing

Lawyers can generate detailed reports on billable and non-billable time to help improve the transparency of their billing and invoicing. This not only supports client trust, but it helps clients understand the value of the legal services provided. 

Enhanced Profitability

Accurate time tracking can help law firms and legal professionals better understand the profitability of their work. By tracking time spent on different tasks and activities, lawyers can analyze their productivity, profitability, and ROI on matters or contacts. This can enable law firms to make data-driven decisions, optimize their pricing strategies, and improve their overall profitability.

Reporting

Many digital time tracking tools offer reporting and analytics features that provide valuable insights into time utilization, productivity, and profitability. Lawyers can use these insights to analyze many aspects of their business. Firms can analyze work patterns, identify areas for improvement, and make data-driven decisions to optimize their workflow, performance, and profitability.

What Is Time Tracking Software?

Time tracking software is a system that helps individuals and businesses monitor and record the amount of time spent on specific tasks or activities. 

In the context of law firms, time tracking software is used to accurately capture the time spent on billable tasks by lawyers and other staff members. Law firms use time tracking software to streamline their billing processes, improve accuracy and transparency, and increase efficiency. 

By effectively tracking time spent on client matters, law firms can generate accurate invoices and ensure that clients are billed appropriately for the work performed. Time tracking software can also help firms identify areas where they can maximize productivity by highlighting time-consuming or unprofitable tasks.

Overall, time tracking software is an important tool for law firms to ensure that they are maximizing their billable hours and providing accurate billing information to their clients. 

How To Choose the Best Time Tracking Software

Choosing the best time tracking software can be a critical decision that impacts the success of your firm’s operations even beyond time tracking. Here are some essential tips to help you make an informed decision:

Assess Your Firm’s Needs and Goals

Start by identifying your firm’s specific time tracking needs. Consider factors such as the size of your firm, practice area, the software you currently use, and any specific features you require (i.e. project management, reporting, integrations). You will also want to consider your finances and how the new software will fit into your budget.

Defining your needs, goals, and budget before starting your search will mitigate any confusion and ensure you get the features your firm actually needs.

Compare Your Options

There are several time tracking options available on the market which can make it difficult to navigate which is best for your firm. This is why it’s important to have your firm’s goals in mind during the process so you have a point of reference. 

Depending on your practice area, you’ll also want to consider finding time tracking software that is specific to your field.

Read Customer Reviews

Read reviews and testimonials from other users to get insights into their experiences with the time tracking software. Look for feedback related to ease of use, features, customer service, and overall satisfaction to help you make an informed decision.

Book a Trial or Demo

It’s one thing to see videos and images. Always book a demo to see the software in action. Once you have shortlisted your top options, schedule a demo to ask questions and see the functionality of its features. 

When available, you should also opt for a free trial to see how easy it is to transition the time tracking software into your processes over an extended period of time.

Time Tracking Software Features to Consider

Ease of Use

The right time tracking software will be a seamless transition for your firm. It should be easy for you and your staff to quickly start tracking time without a steep learning curve. This is most prevalent in time tracking software that has a clean and simple interface, with clear instructions and navigation.

Features and Customization

Ensuring your firm has the features it needs is important. However, don’t overlook having the ability to customize them. This can come in the form of specific settings. Think of features like adding your billable hour methods or increments or adding your brand logo to invoices

Security and Privacy

Lawyers have a responsibility to ensure that the software and technology they use is secure and maintains client confidentiality. Legal-specific time tracking software often operates in the cloud. With features such as data encryption, user access controls, and automatic backups, your data stays safe. 

Platform Compatibility

Depending on the current systems your firm uses, it’s important the new time tracking software you adopt is compatible with the platforms you use most frequently. This can reduce migration time and lessen the learning curve across your firm. 

Reporting and Analytics

A time tracking software that offers robust time and expense reporting features can provide valuable insights. Make data-driven decisions and improve your firm’s workflow, productivity, and project progress.

Pricing

Consider your budget and evaluate the pricing options offered by different time tracking software vendors. Some time tracking software may offer free or basic plans with limited features. Alternatively, others may offer more robust plans at a higher cost. Choose a pricing plan that fits your budget and provides the features you need.

How To Standardize Legal Time Tracking at Your Firm

Now that you know the features to look for in lawyer time tracking software, it’s important to standardize your time tracking process so everyone at your firm is on the same page. 

Create a Time Tracking Policy

Along with a defined legal billing policy, your firm should consider creating a comprehensive time tracking policy that outlines lawyer time tracking expectations to ensure your firm’s time tracking is consistent. A lawyer time tracking policy should include items such as: 

• Expectations for time tracking
• Accepted methods of capturing time
• How to create detailed time entries
• The difference between billable and non-billable hours
• Compliance guidelines

Use the Time Tracking Software

A centralized time tracking software that is accessible to everyone in your firm will make it easier to capture time, monitor time entries, and track performance. How to properly use your firm’s time tracking software should be outlined in your time tracking policy. 

Determine Your Billing Rates and Codes

Establishing specific billing rates and codes for different tasks or activities will help streamline the billing process and improve accuracy in client invoicing. This includes items like your firm’s billing rates, increments, or fixed fees.

Train Your Staff

Offer training and education to all lawyers and staff on the importance of accurate time tracking and the proper use of time tracking software. Provide guidance on how to submit time entries, use billing codes or categories, and allocate time to the correct client or matter. 

Routinely Monitor Time Entries

Set up a schedule for how often you will review your firm’s perspective and by which measures. The best time tracking software will give you a bird’s eye view of how long you spent doing each task, setting you up to make well-informed decisions.

Improve Your Firm’s Legal Time Tracking with Bill4Time

Time tracking can be an afterthought when balancing firm operations and client demands. The need for legal services and digital processes continues to grow. Now is the time for law firms to adopt solutions that automate time-consuming administrative tasks, like time tracking and billing. 

As discussed, manual lawyer time tracking methods can hinder productivity and profitability. Plus, pose ethical issues that can tarnish your firm’s reputation and client retention. By adopting legal time tracking software, your firm can access the resources it needs to standardize the time tracking process, boost productivity and increase the accuracy of your bills. 

Bill4Time’s time tracking software reduces administrative tasks with automated features. Maximizing firm efficiency by modernizing how law firms track their time.

With Bill4Time your firm will have access to: 

Automated Time Tracking

A set-it-and-forget-it approach to lawyer time tracking. Running multiple timers assigned to different cases allows you to glide between cases while capturing all of your time. Easily start or stop the timers on one screen as you go and make edits as needed.

Multiple Methods of Time Entry Creation

Multiple timers are great for capturing time as you multitask, however, it shouldn’t be the only time tracking method. The right legal time tracking software will allow you to create time entries from calendar events, or emails. 

Integrated Billing and Invoicing

Time tracking is the foundation of billing and invoicing your clients. Having a time tracking software that links the two together will save you time from manually creating an invoice. Create invoice templates, add custom payment links for online payment, and add your firm’s logo.

Robust Reporting

Use Bill4time’s custom reports to easily generate essential time and expense reports to understand your firm’s performance. Apply custom billing codes, search by contact or matter, expense, and more. Bill4Time also comes equipped with all UTBMS codes law firms use for expenses. 

Mobile Application

Time tracking isn’t limited to the office. Bill4Time’s mobile app for lawyer time tracking helps you capture time on the go by having the ability to start and stop timers. The Bill4Time app even lets you track non-billable time.

In short, Bill4Time automates time tracking, legal billing, invoicing, and more to help lawyers operate more efficiently. To find out more, schedule a demo or start a free trial with Bill4Time.