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Top 4 Billing Best Practices (Or How to Avoid Aggravating Your Clients and Litigating Fee Disputes)

Not surprisingly, billing is often cited as a “least favorite” part of private practice for attorneys. It can be tempting to put off or rush through, but that way lies angry client phone calls and legal fee audits. Here are four billing best practices to keep you ethical and far away from costly disputes.

  1. Keep Contemporaneous Records. You’re in a groove, and you don’t want to stop to track your time. But if you’re trying to get out the door at the end of the day, it’s a lot easier to plug your time into your billing software if you took notes, instead of trying to remember “how long did I spend on that motion at 10 a.m.?”
  2. Bill Each Task Separately. Related to tip #1, this is a lot easier if you take notes during the day. Just because you spent two hours on one client doesn’t mean you can “block bill” that time. Instead, break it down into increments – .2 for a phone call to opposing counsel re: lease negotiations, .6 for research on notice requirements, and 1.2 on drafting a motion to dismiss, for example. This way your bills won’t raise red flags and you’ll be better prepared to explain your fees to the client or the court.
  3. Be Specific! Like block billing, vague billing makes it harder for the client to know if the time you’re spending is reasonable. “Phone call”, “Research”, and “Draft motion” might seem obvious to you (you’re only working on one motion for that client, after all), but without more information the client has no idea why that phone call took 15 minutes, or if it was even related to their case.
  4. Don’t Bill for Administrative Work. If you’re a solo or small firm, you may have to take on tasks that an administrative assistant or paralegal might do a larger firm. Unfortunately, just because you’re doing the work doesn’t mean you can bill for it. If you are routinely spending time on photocopies, e-filing, or other non-legal work, consider whether it makes sense to hire someone, freeing you up for client attraction and retention – the kind of work where you can enjoy even more billing in the future!

For more information, check out the full article here.

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