6 advantages of modernising time recording and law firm billing
Time recording is not just a task undertaken to establish how much to bill a client for the work your firm performs. There are other significant benefits that arise from having an effective time recording process for both chargeable and non-chargeable time: -
Productivity management – With an effective time recording strategy each fee earner will record the time they have spent on each task and exactly the actions they took. Over time this builds a picture of activity for a matter, each fee earner, and the firm as a whole. With a simple analysis tool the firm has access to a wealth of information from which it can assess the productivity of the firm and its fee earners which in turn can drive improvements in productivity and profitability.
Performance management – With time recording being effective it can be used to manage performance. Through analysing the data collected and setting targets for each fee earner, the firm is able to monitor performance against these targets in a simple yet effective way. The firm can use the data generated by time recording to assess what each fee earner has undertaken over a period of time and measure this directly against the firm’s expectations. Through this analysis and understanding the firm is able to make improvements to benefit the individual and the firm as a whole.
Assessment of fixed fees – If your firm works to a fixed fee for certain work types, effective time recording enables the firm to review the actions taken vs the actual time spent and compare this to the final fee charged to the client. It will enable the firm to monitor and track the appropriateness of the fixed fees that they have set and (subject to the client and market) adjust the rate charged or drive performance changes into the business to reduce the time spent on the matter to ensure the work performed is in keeping with the fixed fee.
Reviewing capped fees – Where a firm has capped fees in place it is able to set warnings and matter reviews as caps start to be reached for action to be taken. By identifying when a matter has reached, for example, 75% of the cap, a matter review can be undertaken to confirm if the fees will exceed 100% which can then drive behaviour whether that is to accelerate resolution of the matter or to address the fee cap with the client.
Track and assess non-chargeable time – An often hidden cost within a law firm is the non-chargeable time. Understanding what non-chargeable time is being undertaken, and why, is vital to the success of a law firm. Through effective time recording the firm is able to assess the entries and identify and adjust behaviour at both fee earner and firm level, or even introduce other technology to minimise non-chargeable time.
Enhanced profitability – Through understanding the time and tasks performed, an analysis of the data can be carried out by the firm. The firm is then able to assess what is happening, when and why. By answering these questions the law firm is able to drive behaviours or introduce technology to enhance or adapt performance which, in turn, will enhance profitability and unlock the full potential of your law firm.
RevenueManager is an innovative software solution that drives effective time recording behaviours into firms of all sizes so ensuring all of the above benefits can be addressed.
Our bespoke software ensures fee earners keep their time recording up-to-date at all times. RevenueManager continually monitors time recording, notifying fee earners of missing time. The software has an override application that automatically launches your time recording system, when time is missing. Transforming the way your firm time records.
With RevenueManager in your firm you can be assured that time recording will become easier and more accurate.