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Client transparency: The secret to perfect legal billing

By Practice Panther  
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top secretLet’s face it – people hate working with attorneys. Probably the biggest reason is because they’re afraid of getting overcharged. Put yourself in their shoes. Imagine walking into an office and having someone tell you, “I can help for $250/hour. I’ll send you the bill at the end of the month.” You have no idea if they’re being honest and truthful, if they racked up the bill, or have any system in place to accurately track their time. You just need to trust them. And trusting a stranger is hard when you’ve just met them.

The Problem:

Many firms and solo practitioners find themselves struggling with fee disputes, especially if they don’t have a system for documenting their time and expenses.

Common examples:

  1. Has a client ever been blindsided by a bill they weren’t expecting?
  2. Have they ever questioned your time entries?
  3. Did they demand a discount?
  4. Have they ever threatened to give you a bar complaint?
  5. Do they pretend they never got your invoice?

There are actually many ways to get around this problem but the most efficient way is to use a legal billing software like PracticePanther. The obvious perk is that it’s simple to use and, more importantly, clients love the transparency. So in your initial consultation, simply let your clients know:

  1. We use a professional billing software to track our time to the second.
  2. You get an invoice with detailed descriptions of every time entry and expense.
  3. You can login to your client portal from our website that shows all your invoices, payments, documents, and more.

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The ultimate goal is to end up with only happy clients. Happy clients refer their friends. Happy clients give positive reviews online. Happy clients come from quality service and results, but also by being transparent about your fees. 

How to properly track your time

Your time is valuable. You didn’t go to law school and spend thousands of dollars to give away your time for free.

What bothers me the most is that so many attorneys still give away their time so freely, and end up at the office until 10 PM catching up every night. Is this the life you expected? How is this fair to your spouse or family?

Billing your customers should only take one click on the computer. You shouldn’t have to manually calculate your invoices and create them off a Microsoft Word template. There are MUCH easier ways to bill your clients in 2016. How much would you pay if you could get home early every night, not have to work on weekends, and save 8 hours a month creating invoices? If you charge $250 an hour, saving only 8 hours a month could potentially mean an extra $2,000 of billable time, or 8 more hours to spend with your loved ones. And to think, a case management software could only cost you $49/month per user. Crazy right?

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Tracking expenses is essential

Are you missing out on money that’s yours? Are you forgetting to bill for all your expenses? With a law practice management software, you can keep track of every dollar spent, and even upload a picture of the receipt. Your client will NEVER question your invoice again. Feels good doesn’t it?

Charge correctly for your paralegal

It’s easy for an attorney to get their paralegals help, but when a client is paying senior attorney fees, it becomes not only unethical, but fraudulent. Avoid falling into this trap by keeping detailed records of when another person worked on the case, and adjust the fees accordingly. 

Stay compliant with the ABA

It’s important to stay compliant with the ABA and make sure you’re always protected against a bar complaint. By keeping detailed records of every time entry, every expense, every phone call and email, you will have the necessary documentation to show your client, the state bar, or a judge. Whether it’s PracticePanther’s legal billing software, or any other, you must stay organized or you risk losing your license you worked so hard for.

Julian Gutierrez is an online marketing and legal tech expert. As the digital marketing manager at PracticePanther, he oversees the easy-to-use interface, helping lawyers manage their time, expenses, client communications, billing, matters, and more. Thousands of lawyers, paralegals, and firms in over 25 countries use PracticePanther daily. Schedule a demo today and get 50% off your first 3 months using coupon code “ATL50”.

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