Category Archives: Billable Hours

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Why Good Legal Accounting Matters

Why Good Legal Accounting Matters

I became a lawyer because I enjoy practicing law.

But, as many who have opened their own law firms know, running a business means wearing a few different hats. And, one of the most uncomfortable hats you might wear is one of an accountant.

Legal firms present unique challenges, even for professional accountants. One reason is the complicated nature of the law. Legal accounting requirements involve so much more than “money in, money out.” Client trust accounts, recovery of costs advanced, alternative fee arrangements, and other intricate law firm accounting standards can make some CPAs’ heads spin.

So unless you are independently wealthy and plan to work strictly pro bono, you must understand how to keep your business afloat. Good accounting practices are more than important – they will provide the life preserver your business will cling to in choppy waters.

All Dollars Are Not Created Equal
All funds received by your firm are not categorized the same way. As you may know, retainers and client trust accounts are legally not the property of the firm until work has been done, invoiced, and approved by the client.

Those monies should be kept separately from an account being used for general expenses and money paid on invoices. Personal injury settlements should also be kept isolated from funds belonging to the firm. Keeping everything discrete will avoid problems with compliance issues, as well as improve accounting clarity.

Timing Is Everything: Clock Your Hours
From research to client calls to contract negotiations – a lawyer’s time is a client’s money well spent. Or, at least it should be. Accurately capturing the billable hours of everyone in your office is more critical than ever as clients become increasingly educated on standard rates and competitive pricing across the industry.

Work-in-progress tracking requires a commitment from all lawyers and your team’s supporting staff. Without a clear view to differentiate billed hours versus what is documented in each invoice, your firm won’t know where earnings might be lost. Choose accounting software created especially for law firms to track hours and billing; it will distinguish between items like indirect and direct matter costs, reimbursements versus regular billings and alternative fee arrangements. And, this may go without saying, but good software will ensure client invoices are being paid timely and not languishing.

Decrease Overhead to Gain the Upper Hand
Most lawyers heading up small firms know that while revenue may be variable each month, expenses tend to be fixed. Rent and electricity are non-negotiable – even for the best lawyers! Working to keep overhead down and focusing on profitability rank high on the to-do lists of most law firms.

Maintain a central database system to allow you to keep accounting and practice management in one place. This can cut down on manual data entry and reduce discrepancies. Invest in technology to improve the efficacy of your office. Automate your legal documents with legal form software. Submit bills electronically and cut down on paper and ink.

Good accounting practices may not be the most exciting part of running a law firm, but if profitability is high on your priority list (and I assume it is), it’s a critical step towards your firm’s success.

And, if you’d like to learn more about how our automated document assembly software can make your law office more efficient and profitable, you should consider a free trial of JurisDOC. There’s no better way to see how quickly you can save time — and money!

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Billable Hours Only Pay Off When You Actually Get Paid

Billable Hours Only Pay Off When You Actually Get Paid

One of the most frustrating experiences as an attorney is when your client refuses to pay. You’ve put your blood, sweat and tears (or at least a significant amount of brain power) into their work, and now you’re not going to reap the reward. While there’s no way to 100% ensure that you get paid for the work you do as an attorney, there are ways to improve your billing efficiency and make your clients feel more inclined to pay their bills, so you don’t end up getting stiffed.

#1 Set expectations ahead of time
It’s in everyone’s best interest to discuss the fee arrangement with the client before you start the case, and especially before you send any bills. Make sure your client has a complete understanding of what you will charge for your services, and put the fee agreement in writing, even if your jurisdiction does not require a written engagement agreement. You and the client both can refer to the document if there are ever misunderstandings about the bill.

#2 Provide clear & detailed invoices
Provide detail, but make it simple. The bill should be easy for the client to understand, but it should also adequately convey the legal services you performed. Don’t use shorthand or abbreviations that the client may not know or understand.

And the description areas for time entries exist for a reason – use them! Let the client know specifically what tasks were performed on their behalf. It may even be a good idea to walk your client through the first bill, so they fully understand what they are charged for. Explain each individual charge and the work that was completed, and make sure to answer any questions that arise.

#3 Keep fees reasonable
If your hourly fee is considered appropriate, but a lack of legal experience results in your spending an excessive amount of time on a routine task, the amount you ultimately bill will not be appropriate after all. Or if you worked on a document and then had to revise it because you discovered a fundamental error, clients won’t want to pay for that extra time.

Clients are paying for you to get it right, efficiently, the first time. With that in mind, include all of your work in the invoice (so that the client knows exactly what you have worked on), but make a note by any excessive time to let the client know that they won’t be charged for that time.

#4 Make getting paid easy with legal technology
As always (or at least, almost always), technology is your friend. Software specifically designed for lawyers will help streamline billing processes and make your life – and your clients’ lives – a lot easier.

We can’t strong-arm your clients into paying their bills, but we can provide you with simple and effective software for billing those clients. Start with a free trial of JurisDOC’s document automation and client invoicing software and start reaping the rewards today. Find your free trial at

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Making the Case for Document Automation

Making the Case for Document Automation

Automate, automate, automate! We’ve all heard it numerous times. As an attorney, it’s difficult to escape that word these days, especially when it comes to document assembly and creation. The knee-jerk reaction may be to say “I’ve gone without automation software all these years and have been doing just fine, thanks.” But there are legitimate reasons why you should consider hopping on the automation bandwagon.

Chances are, you or your staff prepares the same types of pleadings or documents over and over again, with minor changes, in the same types of cases. It might feel more comfortable to personally craft the words in each document because we can ensure they’re perfect.

With customizable software like JurisDOC, you have access to thousands of alternate clauses as well as the ability to edit each document. This means you can customize your documents, while at the same time, increase consistency across staff members. When changes need to be made, all relevant documents can be updated accordingly and made available to staff members, so everyone is using the most current and relevant documents, and error is minimized.

Save Time
Let’s be honest—crafting legal documents is a time-sucker. When you create these documents yourself, time gets wasted trying to find the right form to use. More valuable time gets spent as you repeatedly copy and paste the same information to the numerous forms required throughout each case.

With document assembly software, you don’t have to worry about any of that. In the case of JurisDOC, the right forms are easily accessible in an extensive database covering numerous areas of law, and with over 2,000 alternate clauses at your fingertips, little to no copying and pasting is necessary. If used consistently, document assembly software can save you 15-30 minutes, or more, each day.

Increase billable hours and monthly income
With that kind of time saved each day, you’ll get 6-10 additional billable hours each month, which translates to increased income. The question now is not whether you can afford it—but whether you can afford to be without it.

Stop wondering about how legal document automation can help you and find out—at no risk or cost. Download a free trial of our software and see how JurisDOC can help you spend less time assembling documents and more time practicing law. Get started today at and try it free.

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