Legal billing processes are not only labor-intensive and detailed. They can also eat into valuable time that could be better spent working on client matters or investing in business development opportunities. Moreover, without an optimized legal billing process, you could be waiting longer to get paid and losing billable hours simultaneously.  

But the good news is that you don’t need to set up complex tools or implement new processes to make invoicing and payments easier. Instead, returning to the basics can yield positive improvements for your law firm.  

The three stages of billing 

Billing isn’t accomplished in one fell swoop. Each law firm’s billing process involves three distinct functions:  

1. Time and expense tracking 
2. Invoicing 
3. Collections 

Here’s what you need to know about each of them. (And steps you can take today to improve them at your firm.) 

1. Time and expense tracking  

Time and expense tracking are the most important information you can gather for your billing.  

When you don’t track billable time accurately, you don’t get paid accurately. You may also run the compliance risk of over-billing clients for your work. Finally, if you’re not keeping up with your non-billable hours, you won’t be able to analyze what processes are productive and which need to be improved.  

To ensure that your time and expense tracking is done correctly, follow these best practices:  

Track time and expenses in the moment 

Don’t wait until later to input your billable time and expenses. If you’re tracking in real-time, you’re increasing the accuracy of your invoices. Not only can this support compliant billing, but it can also get you that much closer to getting paid on time when you send clients accurate invoices.

Offer convenient timekeeping options 

Make sure that your team has the resources in place to conveniently and accurately track time and expenses as they work. Mobile-friendly, remote-friendly time and expense trackers can increase the likelihood that everything is recorded—no work or expense is left behind! 

Keep timekeeper productivity visible 

When productivity is visible and measurable, it creates accountability among your entire law firm. It also allows your team to independently look at their processes and assess areas where they can improve.  

Capture all items 

Make sure your team tracks billable, non-billable, and no-charge hours. By monitoring all items, you can get a better picture of the value of your time. You can also establish more accurate fees and rates for your legal services, which can help boost your profitability.  

How tech can help 

The right software can help you implement these best practices for daily tracking without eating up valuable time and energy that could be spent on other, more pressing tasks.  

The right tech tools should offer you:  

• Mobile access so you can track time no matter where you are  
• Timesheets to help with reviewing your time in a centralized location 
• Default descriptions for easy inputting when tracking repeatable actions 
• Integrations so you can use everyday tools like Gmail, Outlook, or calendars and sync them with your billing tool 
• Passive time tracking so you can auto-track time spent, like site visits and phone calls, so you don’t over or under-bill your clients.  
• Productivity dashboards for quick and easy views of productivity 

2. Invoicing 

Invoicing may seem straightforward, but there’s still plenty that your law firm can do to streamline invoicing and minimize errors when billing clients.  

The standard invoicing process should entail the following: 

• Reviewing your time and expense entries and making appropriate edits 
• Generating the final bill for your clients 
• Delivering bills to clients for payment 

How tech can help  

These three steps for invoicing can be time-consuming and cumbersome. However, if you have the right legal billing software, you can automate much of the process while delivering accurate invoices to your clients.  

CosmoLex provides solutions for your invoicing needs, including:  

• Electronic review, edit, and approval of draft bills and invoices 
• Custom templates for invoices that provide consistency and allow for batch processing 
• Electronic invoice delivery through emails or secure portals 
• Notifications for viewed invoices that give you a heads-up when a customer has seen your bill 

3. Collections   

The last stage of the billing workflow is collections (in other words, getting paid). But if you’re not using billing and invoicing software to manage your collections process, you could miss out on the opportunity for more prompt payments or be left waiting for retainers to be replenished. 

The collections process involves:  

• Applying retainers or other available funds on hand to your invoices 
• Seeking payment directly from clients for completed work when there are no funds in trust or retainers available 
• Contacting clients and following up on past-due balances to prevent high accounts receivable (AR)  

How tech can help  

The key to streamlining your collections process is being proactive. Legal billing software can help you manage collections, putting you in a position to get paid consistently and promptly.  

With CosmoLex, you can:  

• Accept funds in advance when appropriate, so you don’t have to worry about getting paid later or having your invoices age for too long  
• Visualize WIPs (works-in-progress) vs. available funds to help you determine how to bill your client appropriately  
• Let your client know how much money needs to be replenished in evergreen retainers 
• Offer electronic payment options to your client, making rendering payment easy for them and increasing the likelihood of early or on-time payments for you 
• Send batch invoice reminders to help you move accounts from collections into the paid category without using valuable hours  
• Regularly generate AR reports to identify past due invoices, who’s responsible for them, and pursue an appropriate collection strategy 

Take your billing and invoicing processes to the next level with CosmoLex 

With CosmoLex’s legal billing software, your law firm can implement the best invoicing and payment practices with less work and more success. Our comprehensive legal management tools are designed to improve the client experience, reduce your team’s workload, and get you paid faster at the same time. 

Schedule your free demo today and see what CosmoLex can do for your law firm.