Organized billing – a necessity for timely payments – requires being on top of a number of administrative tasks, which recur, month after month. It absorbs valuable hours, and law firms are always looking to cut down on the time it takes. Track time as it occurs You can’t bill what you haven’t tracked. Make sure you’re contemporaneously tracking tasks, … Read More
How and when can my law firm raise its rates?
Because of rising costs, inflation, and desire to attract and retain talented employees, most law firms raise their rates regularly. Deciding how and when to do this requires a strategy for determining what to charge and for communicating changes to clients. Determining rates with market research. Conducting research in local markets can help firms determine what to charge. Price point … Read More
What should my law firm include in a fee agreement?
Fee agreements are an important part of any firm’s operations. They help protect both attorneys and clients and prevent any misunderstanding about the work to which both parties have agreed. Fee agreements may differ across firms, practice areas, and states, but they should all have these four critical components. Identity of the Client. This seems simple, but client identity can … Read More
What client costs can my law firm be reimbursed for?
Law firms incur many different types of expenses on behalf of clients, and many costs can be reimbursed in the course of client billing. It is important to understand what these costs are, distinguish between hard and soft costs, and make sure that fee agreements between you and your clients delineate these costs upfront so that clients aren’t faced with … Read More
Should my law firm use retainers or just bill as work is done?
Law firms either bill as work is done (e.g., monthly, quarterly, or at predetermined milestones) or by using a retainer model. The three retainer models most frequently used by law firms are: General retainers Flat fees or advance payment retainers Security retainers General retainers secure a lawyer’s services for a particular period of time, and flat-fee retainers function as complete … Read More
When will law firms go back to what it was like before COVID?
There is no clear answer, as the coronavirus pandemic has yet to subside in the United States. For unrestricted public and professional activity, many different but interconnected pieces must be in place. Because each state has taken its own path in responding to the coronavirus, state authorities will have to determine if cases are low enough to allow continued reopening. … Read More
How should my law firm handle our billing?
Legal billing is a distinct practice with nuances and complexities that distinguish it from billing in other industries. Legal billing can be complex for clients to understand because of rate structures, retainers, and invoicing practices[1]. When determining your billing practices, you should look at rates, time tracking, and payment methods to find your best options[2]. Hourly Rate The most common … Read More
What is the safest way to prepare my law firm for the future or another natural disaster?
2020 has been a year of crisis management. Between the coronavirus pandemic, wildfires, police brutality riots, and numerous large-scale natural disasters across the United States, law firms have had to contend with a lot of uncertainty. These events have raised the question of how to safely prepare for future disasters. The first thing that a firm must have in place … Read More
What should my law firm do to plan for the next year?
Planning for the upcoming year often starts in the final quarter of the year. Annual plans vary widely depending on the structure and scope of the firm, but there are some topics that appear in most effective strategic plans for law firms. Finances & Operations Every firm should evaluate their finances. This may include reviewing their current budget situation and … Read More
How can our law firm avoid a billing dispute?
Billing disputes are stressful for everyone. They’re time-consuming, stressful, and can hurt your reputation. However, there are a number of ways you can avoid disputes over billing and collection. By implementing these best practices, you may be able to head off conflict before it begins. Focus on transparency Be clear and honest with your clients about costs, timelines, and possible … Read More