3 Ways to Increase Transparency in Legal Billing

23 Jul

3 Ways to Increase Transparency in Legal Billing


What’s One Finance Issue Your Clients Are Afraid Of?

A main reason why people might not enjoy working with attorneys is that they are afraid of being overcharged. Many have no idea of how exactly these charges are generated, and may feel cheated. Therefore, it is important for lawyers to come up with ways to make their billing process more transparent. If you understand how the total amount of money that you are charged was calculated, you will pay without any hitch.

The Problem

The problem comes when you cannot tell how the attorney reached to the total bill that you are charged. Many solo practitioners as well as firms get involved in fees disputes on a regular basis, especially if they don’t have a system that documents the time and expenses. Clients are usually blindsided when they receive a bill that they were not expecting. Most of them question the time entries, arguing that there is some form of exaggeration. Others will demand a discount, saying they will be regular customers. A lawyer should come up with ways to increase the transparency of the billing process in order to avoid these issues.

The following are ways in which lawyers can utilize to make billing process clearer.

  1. Use a Legal Billing Software

This is the best way to increase transparency when it comes to legal billing. A legal billing software is an application that makes it easy for lawyers to track and record the time they have spent working for specific clients. The software allows for precise time capturing via any computing device eliminating the need to worry about being at the office physically to carry out the task. Thus, there will be minimal errors when it comes to entries in the billing process. For big firms, there is Law Firm Billing Software that work the same as the aforementioned. The use of the two application has many benefits to the firm. They include:

  • Reduce pressure on bills

The software captures time contemporaneously. Therefore, it reduces the need for the lawyers to spend a lot of time reconstructing the activities of the day related to a particular case. Thus, there will be less or no errors such as over or double billing arising from inaccurate time entries. The software smoothens the process of billing, thereby reducing the pressure that comes with creating the invoice on the last minute.

  • Encourages ethical conduct

Using Legal Billing Software encourages ethical conduct. Lawyers are known to have higher betting rates as compared to other professionals. The main concern clients have is avoiding high legal charges. Attorneys have the responsibility to make the billing clear and understandable to clients. This will reduce the number of disputes that arises when it comes to legal charges. A Law Firm Billing Software that is cloud-based provide transparency and allow task based detailed explanations that is forwarded to the client to eliminate the feeling that they are being overcharged. The software monitors time entries and at the same time eliminate irregularities that may cause disputes. The software can present the charges in any currency, meaning it can be used in different parts of the world.

  • Improve law firm revenues

The firm will attract many clients due to increased transparency that comes with using technology in the billing process. There will be less errors in the financial transaction, thus no money will be lost. The firm will grow due to increased revenue.

  1. Clear Policies

It is important for an attorney to help clients understand the policies of the law firm around everything. This include how late payments is handled and all processes of legal billing. This will help build trust and the client will not have any complaint when presented with the bill. There will be no disputes and you will attract more customers either from referrals or return clients. The transparency will be on its highest point.

  1. Announce Changes

If you plan to make changes regarding how you will handle a particular task, notify your client beforehand. The majority of the people do not like surprises. Any small change may not go well with them. Letting them know in advance will make them feel comfortable and believe that you have their best interest.


One of the essentials for the law office is to have transparency, especially in the billing process. Attorneys are required to charge clients as per the numbers of hours they have spent working on their cases. For better results, a paralegal should be hired to be dealing with legal billing. A firm that is transparent attracts many more customers.


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