9 Common Billing Mistakes Made by Attorneys

28 Jul

9 Common Billing Mistakes Made by Attorneys


Billing Issues That Might Create Friction And Confusion

Most businesses in the service industry have billing needs and attorneys who have clients are not any different. Law firm billing software can meet the attorney’s needs in ways that a general software can’t. Software is a necessity in any business, whether it is used to create a basic powerpoint presentation or to keep up with the hourly pay of your staff members, and a law office is no different.

It is unfortunate, that in some cases, a client will disagree with the charges made towards their bill; and no lawyer, attorney, or firm ever want to encounter such a dispute without the proper proof to counteract the allegation. Keeping up with proper billing reports and having a software to ease the pain can help a law firm avoid losing money on accurate billing practices.

Law firms also don’t want to take the fall publicly for attorneys who lie or commit perjury on their legal bills. By studying an online source called the Legal Information Institute and learning the best way to practice law, an attorney can avoid embarrassing his/her firm. However, there have been some cases where an attorney chose not to follow guidelines and add fees on a bill to cover personal expenses that had nothing to do with the client. If discovered by the client, this could dangerously ruin any good business’s name and character. Law firms across the United States know and understand that there are a plethora of different solutions that can be used when it comes to billing practices. Many firms employ a number of different solutions to fully manage their billing needs, that is where a law firm billing software also known as legal billing software can help. Two reasons are mentioned above why billing software is a must, below is a list of seven more.


  1. Billing Descriptions Which Aren’t Clear

Legal billing software is the simplest way to stop a client from disputing specific or unwanted charges. The information should enclose adequate details avoiding estimated charges and contain the date that the job was performed and the time spent doing the job.


  1. The Ideal Price

In some cases, an attorney may undercharge the client and exclude the total hours of when the job started. Charging the right price will allow the attorney to keep the same rates for all clients and also help with the process of explaining specific rates.


  1. Utilize The Technology Of Today

Technology is designed to make our lives simpler, allowing us to do things effectively and quickly. That is just as accurate with law firm billing software applications as it is with television remotes. Solutions that are wrong may complicate things, demanding an attorney to take an hour or so to achieve something which could have been completed in ten minutes using paper and pencil. The best choice is to give critical thought to the challenges that are faced and locate a technology that handles these needs. Using a program like the Differentiated Case Tracking Program will help an attorney recognize the difference in cases and pricing.


  1. Be Clear And Concise Throughout The Entire Process

Misunderstandings can arise within the range of work and in the event the customer is presented with an invoice that was larger-than-expected, it reflects on the firm negatively. A way to prevent that is to ensure customers are kept current during the whole process. Clients loathe being charged for work which they haven’t seen. It’s good practice to send the work to a customer before they are invoiced.


  1. Keep Detailed Records

A frequent mistake attorneys make is processing regular bills that are basic. The bills they give clients don’t have a description of each service, the time it took to complete the service, and additional charges if any. By giving the client more details within the bill the attorney can supply a sense of risk management.


  1. Get Paid A Retainer Upfront

The very best way to get compensated is by holding retainer fees. However, when an attorney deposits these funds in a trust account or business account, then it’s best practices to prohibit to the spending of the funds until it is earned during documented fees. Tracking every penny of retainer capital across dozens of instances can be a struggle, but it is possible if given the right tools.


  1. Incorrect Time Tracking

Attempting to recreate a schedule at the end of the week is hopeless and could definitely backfire. An attorney will wind up without planning to, deduct from their own hours losing money. This can be avoided by either imputing the information in the cloud or documenting it daily using a notepad.


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