It’s important to track legal expenses effectively. Particularly if you are adhering to a Differentiated Case Tracking Program, you need to know what expenses are associated with individual cases. Legal billing software has the potential to save you a lot of time. When you combine the right software with other tips on tracking expenses, you can adhere to your budget more effectively.
List All Monthly Bills
You should list all monthly bills. These are the bills that come in each and every month. Often, the recurring bills are forgotten about, which leads to budgeting problems. You need to ensure you are accounting for all of the expenses that you have to deal with each month, not just the individual ones that occur within each case.
Some of the expenses to consider include phone, internet, rent, and various licenses that you need to maintain.
Save All Receipts
It’s important to save all receipts. Whether it’s from lunch, office supplies, a courier service, or any other expense associated with a case, you need to keep the receipt. When you use legal billing software, it will allow you to enter all receipts and code them as necessary. Good software will also allow you to choose the currency, ensuring that you have everything recorded as needed based on how you run your business.
Until you have the time to enter all of the receipts, maintain a bin or folder where you keep them. This will ensure that they don’t get tossed before you have a chance to register them.
By investing in professional legal billing software, you can manage your legal practice more efficiently. You will have the ability to track all of your expenses and also create invoices based on what you need to bill back to the client.
It’s important to identify all of the different expenses that you will have. By doing so, you will be able to find a robust accounting solution to meet your needs. You should only have to use one software solution. If you have to use multiple programs to track your expenses and handle billing, it will take longer for you to know what you’re spending money on and what the true financial health of your practice is. Additionally, you want to find software that takes accounting law into consideration so you have more features available to you.
Create Codes per Case
Good law firm billing software will allow you to create codes. This will allow you to identify the expenses that you incur for each case. Should you bill directly back to the client, you will have reports that show what the expenses are so that there are no questions.
An ABA litigation code set might be included in law firm billing software as well. it will allow you to identify tasks and costs of litigation and also reconcile your accounts without having to use a second application.
When you use good legal billing software, it will provide you with extensive reports. If you want to track your expenses, it’s important to review the reports periodically. It will show you a variety of details:
- Total expenses
- Expenses per case
- Recurring expenses
As you review the reports, you might see trends where you are spending too much money. The information on the reports will help to keep you educated about your spending to ensure you can make changes and stay within budget.
When you can better track legal expenses, it will help you to be more aware of your finances. You can then bill to the individual clients and understand more about where your money goes each month.