Charging by time is very appealing to attorneys. Obviously, the more time captured the more profit generated. Without competition from other law firms, an attorney can take, as long they would like, to work on the client’s matter, if they can justify the time spent. The bottom line is the attorney wants to be able to capture as much billable time as possible. The struggle is the client wants the attorney to capture as little billable time as possible. Introducing time-saving software to an attorney who bills by time is not necessarily what this attorney would want.
While software has become synonymous with speeding up workload, and, thus, working to the detriment of a firm who charges by time, it can actually work to their advantage. In fact, legal management software is not only used for time-saving purposes, but is utilized as a means to accurately record time. A practice who charges by time can harness an adequate legal management system with time recording capabilities to capture all their hours spent practicing. With innovative time recording features, software can help record more time than ever before and increase profits.
Studies increasingly show that attorneys who charge by time are not following best practices. When charging by time law firms are not recording all aspects of their practice throughout their day. Attorneys are neither accounting for, nor being rewarded for their hard-worked hours in the current market place. As of a recent report, over 56% of attorneys admit to underestimating their billable hours (a point that was heavily emphasized in our previous blog). More importantly, every year small law firms are missing out on 10% of profit because they are failing to accurately account for their time. It’s becoming more apparent that practices who charge by time are in need of advanced tools that automatically time record. Quantity and accuracy are the two main benefits of good software. If attorneys are not confident in the time recorded, they tend to not bill for it. Having a more accurate time keeping system boosts a firm’s confidence, allowing them to bill more decisively.
By switching to an online time recording system, law firms have increased their profits up to 30%. These firms are capturing more billable time that was previously missed due to lack of time recording tools and methods. Becoming more adept in recording time during all daily activities will result in greater revenue. By working smarter not harder, attorneys can make more money, without the additional workload or increasing headcount.