Everything you need to run a small law firm
Is your firm spending too much time on administrative tasks?
Surveys of billable vs. non-billable hours show that attorneys in small firms work about 60-66 hours a week with up to 12 hours spent on non-billable tasks. In a Lexis-Nexis survey, more than half of respondents ranked administrative and practice management tasks as the number one or two activity that consumed the majority of non-billable hours.
The Root of the Problem
An ABA Legal Technology Survey Report showed that fewer than 35 percent of smaller law firms are using any sort of legal-specific practice management software to assist with administrative tasks.
Here are four simple steps to take control of your time, improve efficiency and bridge the gap between your firm’s billable and non-billable hours.
Step 1: Use One Database
Legal -specific practice management software is a must. However, not all software is equally efficient. You will need software that is an all-in-one solution for maximum efficiency.
Storing information in multiple databases, i.e. one for client data and case management, one for time tracking, one for billing, etc, is inefficient, inaccurate, costly and frustrating. With an all-in-one software solution, you import client and matter details only once and then use those details where and whenever you need them.
You will sabotage your firm’s efficiency if you try to make different systems work together – puzzles are great, just not in your firm.
All-in-one practice management software handles all administrative tasks:
- Matter management
- Workflow control
- Automated forms and precedents
- Document management
- Time recording and billing
- Trust accounting
Once you stop duplicating data, you will be amazed at how much more you will get done, You will save about five hours per person per week on admin tasks and you will enjoy practicing law more.
Step 2: Automate document production
For most lawyers, producing correspondence of all kinds is par for the course. Obviously, the faster the better for improved time utilization and efficiency.
The quickest, easiest and most accurate method to manage correspondence and paperwork is an integrated system that merges previously captured data directly into your document, email and contract templates.
A good system will enable you to complete correspondence in minutes. Ideally, you should also be able to add your own precedents and other legal documents, so there is a standard process for all staff.
This way your benefit is twofold – better service for your clients and efficiency for your firm. It’s a win-win!
Step 3: Record All Time – Billable and Non-Billable Work!
If you’re not recording every second, you’re throwing money away. You must know how much time you are spending on a particular matter so that your fees are accurate, regardless of your fee structure. Recording time manually is inefficient, inaccurate and makes extra non-billable work. What you want is a ‘touch it once’ system where your time is recorded accurately in every instance in which you work on a matter.
The ideal system will track, record and save your billable hours on electronic timesheets automatically and enable you to:
- Find the correct matter quickly
- Start and stop the timer easily if you are interrupted
- Enable you to record time, even if the matter has not yet been opened
- Allow you to record time wherever you are, without being tied to a desktop.
Accurate time recording —only half the battle
Recording your time correctly is crucial, but a ‘client friendly’ billing process is the cherry on top.
Let’s be honest, billing is boring. Too many lawyers have manual or poor systems to record time and the tedious nature of the task means billing gets put off until the conclusion of a matter. Putting off billing until the end might seem like a good way to limit time spend on producing invoices, but it also raises risk of creating bad blood with clients over billing disputes or delays in paying the invoiced amount. Many lawyers place themselves in such a position repeatedly.
Avoid the risk:
- Provide your client with a simple and clear costs agreement
- Record time and disbursements diligently
- Generate bills using the original data recorded in your system. Don’t dictate and retype!
- Prepare invoices regularly, at least monthly, so your clients can pay in small amounts
- Make your payment terms clear
- Stop work if your clients don’t pay
If your firm records billable time in this way, you should expect a revenue increase of about 30%!
Step 4: Make Sure Everyone in the Firm Uses the System
The last step is the most important. Unless everyone in the firm uses the same system and tools, you will never beat inefficiency frustrations and failures. Often it takes strong leadership to push new processes because change can be daunting. Just remember, firms that don’t evolve will not be able to compete successfully.
Small law firm success is not a mystery, The truth is, the better your firm runs, the more profitable it will be and the more you will be able to pay your staff and yourself.
Increase Your Firm’s Profitability with LEAP
LEAP is an elegant, cloud-based legal matter management and accounting software solution that includes everything you need to run a small law firm. The software allows you to work more effectively so your small firm runs more efficiently and profitably.
Because LEAP is used exclusively for small law firms, all the feedback we get is from people like you. Thus, LEAP is a remarkably practical and user friendly solution for anyone working in a small law firm. For more information visit the LEAP website.