Legal Time And Billing Software – A “Must Have” For Law Firms

Tracking billable hours, a variety of fee arrangements, restrictions posed by state ethics rules, and clients who dispute bills can mire your firm in billing issues and affect your bottom line. It is nearly impossible to run an efficient law firm without legal billing software.

Fee Arrangements Vary

Most law firms provide a wide range of legal services and offer any number of fee arrangements. Depending on the client matter and fee structure, billing options for an invoice may include one or more of the following fee types:

  • Hourly
  • Retainer-based hourly
  • Fixed
  • Contingency

State Ethics Rules Pose Billing Restrictions

Retail businesses choose a standard mark-up, assess going market prices, and charge accordingly for their products and services. Law firms, on the other hand, face unique requirements. While they can set their own rates, state ethics rules regulate how hours are billed and how law firms do business. Very often lawyers are required to continue representing clients even if the client’s payments are delinquent.

Lost Billable Hours Impact Profitability

Time is a precious commodity, especially for law firms. Client work is billable; the hours spent on bookkeeping are not. The choice is yours. You can focus on client matters and let a smart system handle time and billing, or lose billable hours as you cope with cumbersome, manual systems. How you track and account for billable hours directly impacts your firm’s profitability.

Preparation for Billing Disputes & Audits

Ethics rules also mean that if a billing dispute arises, a law firm must be able to produce a detailed audit trail, showing who did what and when, as well as how and what the client was charged. Back-office and especially the billing department personnel know that any manual billing system is a nightmare in the event of a controversy or audit. Tech savvy law firms understand the challenges and use cutting edge tools to work proactively and prevent questionable billing practices and disputes.

Legal Billing Software to the Rescue

Legal time and billing software designed specifically for law firms can provide many advantages. Not only will you get a total financial view, you’ll have the ability to:

  • Track all billable time. It’s a simple money equation: if you lose track of billable time, then you won’t send an invoice and you won’t get paid. Cloud-based legal billing software lets you enter billable hours from anywhere so you don’t lose track.
  • Automate invoice generation and payment receipts
  • Monitor and manage inventory (unbilled legal services)
  • Keep an eye on clients who are not paying on time
  • Maintain compliance with state trust laws with integrated trust accounting software
  • Protect client data with off-site backups. Cloud-based software does the backups automatically so you don’t have to think about it.
  • And best of all – produce detailed statements and records in case of an audit or billing dispute.

About Us: CosmoLex is a leader in cloud-based software for lawyers. Our CEO, Dr. Rick Kabra, has worked for many years in the legal software industry, catering to the specialized technology needs of small to medium law firms. Learn more about our law office management software by emailing or calling (866) 878-6798.

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