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Lexzur
Lexzur
Lexzur is a comprehensive Suite of Law Practice Management Software and contract Lifecycle Management Software available for Legal teams of any size in both law firms and in-house. It is modular, enterprise, secure, multi-languag...Read more about Lexzur
MyCase
MyCase
MyCase is a cloud-based legal management solution that helps attorneys in small to medium size law firms manage communications with their clients and carry out daily business operations. The solution also provides functionalities ...Read more about MyCase
Coyote Analytics
Coyote Analytics
Coyote Analytics is a comprehensive financial software system specifically built to meet the needs of law firms. The solution is available in both cloud-based and on-premise deployment formats. It features modules for managing con...Read more about Coyote Analytics
Actionstep
Actionstep
With Actionstep, midsize law firms get total control over their future success. Actionstep's comprehensive legal business management platform is built to adapt to a firm’s unique strengths and goals, empowering firms to modernize ...Read more about Actionstep
Expert Sierra
Expert Sierra
Expert Sierra is a cloud-based legal practice management solution designed to help mid to large-sized law firms assemble, store and manage financial data of cases. Key features include billing, time tracking, team collaboration, t...Read more about Expert Sierra
Centerbase
Centerbase
From your client’s first website visit to their final bill - we power your firm every step of the way. Support the management and growth of your firm with configurable legal operations and client lifecycle management software so...Read more about Centerbase
Clio
Clio
Ranked #1, Clio is the leading law practice management software used by over 150,000 lawyers and with the most 5-star reviews. The only legal software with 1,500+ reviews on Capterra. Lawyers can access and manage their work in ...Read more about Clio
LegalTrek
LegalTrek
LegalTrek is a legal practice management solution designed for midsize law firms and legal departments. Key features include office management, time tracking and schedule management. The solution offers a centralized document...Read more about LegalTrek
HoudiniESQ
HoudiniESQ
HoudiniEsq is a hybrid law practice management solution that caters to law practices of all sizes and provides them the functionalities to manage various business routines which include cases, billing, invoicing and several other ...Read more about HoudiniESQ
LEAP
LEAP
LEAP is the legal practice productivity solution designed to help small to mid-sized law firms improve efficiency, productivity, and profitability. LEAP leverages best-in-class technology to help law firms with practice management...Read more about LEAP
AbacusLaw
AbacusLaw
AbacusLaw is case automation software designed explicitly for law firms. The system works as a complete practice management solution that helps in managing workflows including time tracking, billing, and accounting operations. Aba...Read more about AbacusLaw
Firm Central
Firm Central
Firm Central by Thomson Reuters is a cloud-based legal management solution. It features matter management, time and billing, scheduling and document assembly. All Firm Central packages offer client, matter, document and task ...Read more about Firm Central
LeanLaw
LeanLaw
LeanLaw is a cloud-based timekeeping and billing solution for small to midsize legal practices. Key features include time tracking, billing and invoicing, financial reporting and Quickbooks integration. A free mobile app is also a...Read more about LeanLaw
Smokeball
Smokeball
Smokeball is the only cloud-based legal case management software that also runs from your desktop. Manage all of your matters with collaborative case management; customize your commonly used forms with a single click in document a...Read more about Smokeball
BQE CORE Suite
BQE CORE Suite
BQE’s powerful all-in-one platform and expert support give Architecture, Consulting, and Engineering firms the intuitive tools they need to meet the demands of their firm, empower their team, maximize profitability, and deliver su...Read more about BQE CORE Suite
Filevine
Filevine
Filevine is your ultimate legal tech stack, including case and document management, texting, and time and billing features. Powerful AI tools summarize and find inconsistencies in documents in as quick as a few minutes. Get your f...Read more about Filevine
CARET Legal
CARET Legal
CARET Legal is the leading solution for legal professionals to manage their practice and create space for what matters, including delighting clients and maximizing billable time. From client intake, to matter management, to bac...Read more about CARET Legal
dealcloser
dealcloser
dealcloser is a cloud-based legal transaction processing solution designed for corporate lawyers. It helps law firms to process transactions, manage deals and handle administrative tasks. dealcloser provides a Dynamic Closing...Read more about dealcloser
Osprey Approach
Osprey Approach
Osprey Approach is a cloud-based solution that helps law firms streamline legal operations related to accounting, case handling, workflow management and more. Professionals can store documents, correspondence details, time entries...Read more about Osprey Approach
AdvoLogix
AdvoLogix
AdvoLogix is a comprehensive cloud-based legal operations platform that empowers legal teams of all sizes and structures to streamline workflows, gain valuable insights, and achieve optimal outcomes. Built on the secure and truste...Read more about AdvoLogix
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Buyers Guide
Last Updated: March 16, 2023What Is Legal Billing Software?
Legal billing software is any technology that enables lawyers and law firms to track consulting time and receive payment for their services. These systems offer capabilities like time tracking, invoicing, and accounting.
Tracking billable hours using paper-based methods, or even spreadsheet programs such as Microsoft Excel, can be tedious and time-consuming. What’s worse, these methods create lots of potential for human error. Even after you’ve calculated billable hours, you’ll still need to generate invoices and stay on top of client accounts.
Accurate tracking of billable hours ensures a steady flow of revenue for your law firm or private practice. To automate the billing process and make sure billable time isn’t slipping through the cracks, you’ll need dedicated legal billing software. There are many different types of software that can streamline time tracking and billing for lawyers and legal departments. This guide will help you understand the major categories and features.
Here’s what we’ll cover:
Best-of-Breed Options vs. Practice Management Suites
Common Functionality of Legal Billing Software
Best-of-Breed Options vs. Practice Management Suites
Because billing is foundational to a law office’s operations, there are a number of stand-alone solutions on the market. Time tracking and billing modules are also integrated into more comprehensive practice management software suites. A practice management suite is a single system that manages all areas of your law practice.
If you need extensive case management, document management or contact management functionality in addition to time tracking and billing, you should definitely look into practice management suites. Some suites even integrate time tracking capabilities throughout the system’s modules. For example, you can track time in a document management module without having to use a timer.
If all you need is a better way to track billable hours, look into the many stand-alone solutions on the market created for this purpose.
Common Functionality of Legal Billing Software
Functionality of legal billing software can be divided into three categories: time tracking; bill preparation and payment; and general ledger.
Time Tracking Functionality
Calendar | Calendar may be included, or software may integrate with a calendar application (e.g., Microsoft Outlook). Events created in your calendar can automatically feed into calculations of billable hours. In some systems, calendar information can be used to fill in gaps in billable time. |
Multiple fee schedules/billing arrangements | Allows users to bill time in hourly, contingency, transactional, user-defined, flat fee (monthly, annual or user-defined), retainer fee and split fee increments. |
Billing rates by timekeeper level | Allows users to bill by timekeeper level: e.g., individual attorney, partner, associate, practice area type and client levels. Primarily used by larger firms. |
Automated time capture | Draws on calendar data, documents and tasks to fill in gaps in your billable time. |
Stopwatch timers | Users can set timers to track each minute of billable time. |
Activity codes | Allows users to assign activity codes to billable time, including the codes established by the American Bar Association (ABA). Users can also define their own codes. |
Expense tracking | Allows users to track expenses associated with clients’ accounts. |
Missing time reporting | Allows the system to report on gaps in your billable time. |
Bill Preparation and Payment Functionality
Client invoicing | Automatically generates client invoices based on the billable time recorded in the system. Bills can be delivered via email, or electronically in Legal Electronic Data Exchange Standard (LEDES) format. |
Customizable invoice templates | Allows users to customize invoices with their firm’s logo. |
Past due notices | Automatically notifies clients when bills are past due. Some systems can also calculate late fees automatically. |
Low retainer reminders | Sends automatic notices when clients’ retainer fees are getting low. |
Credit card processing and EFT | Some systems allow users to accept credit card payments. Other systems allow for electronic fund transfer (EFT) payments via automated clearing house (ACH) processing as well as PayPal gateways. |
General Ledger Functionality
Client account balances | Users can record invoices and payments and maintain account balances for all clients. |
IRS filings | Automatically prepares IRS filings on the basis of information stored in the system. |
Trust accounting | Allows users to manage trust accounts for clients and even author checks within the system. |
Interest on Lawyer Trust Accounts (IOLTA) Accounting | IOLTA, which helps raise money for legal aid for those in poverty via interest earned on client funds, entails special accounting requirements that you can manage with your software. The software protects against accounting mistakes and automatically records paper trails in case of an audit. |
Financial reporting | The system can automatically generate reports on information such as outstanding balances and client inactivity. |
What Type of Buyer Are You?
The type of legal billing software you choose will depend, in part, on your specific needs as a buyer. For example:
Solo practitioner. If you have your own practice, you’ll really only need the most basic time-tracking capabilities. While features such as automatic time capture are obviously useful to all attorneys, they’re confined to expensive systems that might not be the best fit for solo practitioners.
Small firms. Small firms should think critically about whether to go with a stand-alone billing solution or a practice management system. If you have special accounting, mobile access and/or payment needs, you may need to invest in a more robust solution.
Large firms. Large firms will need extensive functionality for managing individual time-keepers and clients. Reporting features are also crucial for large firms to identify revenue opportunities. Finally, some legal billing systems include capabilities like those found in customer relationship management systems, which can be necessary for managing lots of clients.