What Is Legal Billing Software?
Legal Billing Software helps attorneys and law firms track overall consulting time and to receive payment for their services.
Keeping track of billable hours using paper methods or through spreads can be repetitive and time-consuming. They can also invite human error when tabulated by hand. Even after billable hours have been calculated, invoices need to be generated and client accounts still need to be attended to.
Accurate billable hour tracking is essential to ensure a steady flow of revenue for corporate law firms or private practices.
Automating the process for accuracy helps ensure that billable hours aren’t being over- or under-estimated.
Many different types of software can help streamline the tracking and billing process for lawyers and legal departments.
Legal billing software features
For inclusion in the category, legal billing solutions should include the main three features (time tracking, bill preparation, and general ledger) and subcomponents of each:
- Time tracking functionality
- Automated time capture
- Fee schedules
- Activity codes (e.g., codes established by the ABA)
- Expense tracking
- Bill preparation
- Client invoicing based on billable time recorded
- Delivery functionality (e.g., email or via LEDES format)
- Customizable invoicing templates
- Payment reminders and past due notices
- Payment processing and electronic fund transfer (e.g., ACH, PayPal)
- General ledger features
- Manage trust accounts
- Financial reporting
- Interest on lawyer trust account (IOLTA) accounting
- IRS filings
- Client account balances via invoice and payment recording