Running an efficient law firm requires a commitment to smart and pragmatic approaches to time and resource usage. Unfortunately, many law firms have wasteful business practices that flush valuable resources right down the drain. To solve the problem, you’ll need strategies that make the most of your limited resources.

Maximize every billable hour.

One of the biggest productivity and profit killers in law firms is using attorneys for tasks that don’t earn revenue. If your lawyers are doing administrative tasks such as answering the phone and sorting their mail, you’re literally flushing money down the drain. If you want to maximize every billable hour, assign administrative tasks to staff members who don’t generate revenue. Even if you feel that you don’t have the cash to keep your attorneys off administrative work, below are a few tips on overcoming this barrier.

1. Join the sharing economy. There are many services available online where you can hire capable administrative staff for only a few hours a month while avoiding the high overhead of keeping an admin stationed in your office.
2. Cross-train administrative staff. If you currently have one or two assistants doing administrative work, cross-training them will help you get more for your money. Having multiple people who can do the same tasks will cover you when people are sick, out on vacation, or decide to quit the job.
3. Automate administrative tasks. If you absolutely cannot afford to hire administrative staff for your law firm, consider automating all or some of your non-billable tasks. There are many software programs on the market that help attorneys become more efficient with the administrative parts of the job.

Automate your billing process.

If you still have a manual billing process then it’s almost guaranteed that you’re losing money. Manual billing systems are cumbersome, time consuming, and prone to errors. And errors are extremely bad for business. Bill a customer too little and you rob yourself of profits. Overcharge a customer and you could face official complaints and even lawsuits against your firm. With an automated billing system, you take a lot of the risk out of billing and save a lot of time too. Below are some things you should look in an automated billing system.

1. Integrated timekeeping system.
2. Easy to use invoicing.
3. Billing system that integrates hours from multiple timekeepers.
4. Flexible system that takes into account client specific billing arrangements.

Update your technology.

If you’re using out-of-date or out-of-the-box technology for your law firm, you could be harming your productivity. Software systems are constantly changing, any failure to adapt to and integrate these changes into your system will cost you. Take the time to assess your current systems. Are they doing what they were designed to do? Are they doing what you need them to do? In what ways have your needs changed? Are your current tech systems able to grow and adapt to your new needs? Now take a look at the new systems on the market. Do they provide better solutions for your law firm? For example, many law firms are using “anytime/anywhere” billing so that they can capture billable hours even when an attorney is away from the office. If you don’t currently have technology that allows anywhere/anytime billing via mobile, you may want to seriously consider upgrading your systems.

If you want your law firm to thrive, you must keep a close eye on those business practices that could be harming productivity.

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Lynn Luong is the Digital Marketing Manager for Smokeball, a case management software that increases productivity and efficiency for solo attorneys  and small law firms to become more profitable.  Lynn has over 8 years of experience in marketing with a focus on digital by developing successful strategies and managing many areas of marketing.