Why Law Firms Prefer Time Tracking Over Block Billing? (2026 Guide)

Law firms across the world are moving away from traditional block billing. When hours are combined into one lump entry, clients doubt the accuracy of the invoice. Firms also find it harder to justify their fees in a competitive legal market. Block billing can even trigger audit concerns, weaken trust, and affect long-term client relationships.

Due to these challenges, many forward-thinking law firms are switching to detailed time tracking. In this guide, you’ll learn why modern time tracking is more transparent, more accurate, and more profitable than traditional block billing practices.

What Is Block Billing?

Block billing is a legal billing practice in which an attorney groups multiple tasks into a single time entry, rather than itemizing each task separately. In other words, instead of listing distinct activities with their individual time spent, the lawyer “blocks” them together under one total.

For example, a block-billed entry might read: “Prepared closing arguments, drafted motion, and client call – 5.0 hours.” While this single combined entry captures the total hours worked, it does not break down how long each specific task took.

Why do some lawyers use block billing?

Primarily time blocking saves the time of writing multiple line items. An attorney at the end of a busy day might recall all tasks and enter them as one lump sum for efficiency. However, as we’ll see, this convenience comes at the cost of clarity and accuracy. Clients reviewing such an invoice may find it vague or confusing.

For instance, if an invoice just says “Legal research – 4 hours,” the client is left wondering what was actually done in those four hours. Was it case law review, drafting a memo, or preparing a brief? This lack of detail is a key reason why block billing is falling out of favor.

What Is Time Tracking for Law Firms?

Time tracking for law firms refers to the practice of recording the actual time spent on each specific task or activity for client work. Instead of reconstructing hours at the end of the day or combining tasks, lawyers using time tracking to log each task as they perform it (or shortly thereafter) with a description and the duration. This method ensures each billable activity is accounted for individually, providing an itemized record of how an attorney’s time is spent.

Traditional legal time tracking often involved filling handwritten timesheets or spreadsheets where attorneys would manually note their hours per task. Today, however, most firms employ dedicated legal time-tracking software to make this process easier and more accurate.

Modern legal time tracking is often augmented by technology – for example, automated timers that run in the background on your computer or mobile device. Many law firms today use such software.

One industry survey noted AI-powered time tracking can increase the billable hours your firm captures by 15–25 percent. Clearly, accurate time tracking is becoming a standard practice as law firms recognize its benefits.

Why Law Firms Are Moving Away from Block Billing?

In recent years, law firms have faced growing pressure from clients, courts, and even bar associations to provide more transparency and accuracy in their billing. Block billing’s “lump sum” approach has come under scrutiny because it can obscure vital details.

• 71% of clients in a recent study rated billing transparency as very important when choosing a law firm, highlighting that clear, accurate billing is key to trust and client retention.
• Law firms lose an average of 14% of billable work to unbilled hours and 10% of invoiced amounts to collection issues annually, amounting to significant revenue loss.
• A 2025 survey emphasizes that almost 50% clients expect law firms to be more transparent about their pricing. Resistance to billing transparency is considered a red flag by many in-house teams.

Increased Risk of Billing Disputes

Because of the ambiguity created by block billing, client billing disputes become far more likely. If a client can’t easily understand what they’re being charged for, they are more prone to question the invoice.

For example, a single 10-hour block entry for “trial preparation” might prompt a client to ask: “What exactly was done in those 10 hours?” If the answers aren’t obvious from the bill, the client may challenge part of the charge or delay payment until they get clarification.

Revenue Leakage and Underbilling

Billing disputes not only strain the attorney-client relationship but can also impact the firm’s revenue cycle. Disputed or unclear invoices are often paid slowly or partially, hurting cash flow. In worst cases, clients might refuse to pay for ambiguous entries or even take their business elsewhere due to trust issues.

Ethical and Compliance Concerns

Block billing has even been associated with ethical concerns that can underlie disputes. Clients might suspect that an attorney is “padding” hours when they see a vague large block, even if that time was actually worked. The mere appearance of potential overbilling can put lawyers on the defensive.

Overall, moving away from block billing greatly reduces these flashpoints by giving clients clarity upfront and thereby minimizing grounds for dispute.

Benefits of Time Tracking for Law Firms

Shifting to detailed time tracking brings a host of benefits that directly address the pitfalls of block billing. By recording time accurately and transparently, law firms can improve their financial performance, client satisfaction, and operational efficiency. Here are some of the top benefits of using time tracking in a law firm:

More Accurate Billing and Increased Profitability

When attorneys track time diligently, their billing becomes far more accurate. Over the course of a year, this can significantly increase a firm’s billable hours and revenue. In fact, firms that adopt modern time-tracking software often see their recorded billable hours rise.

Accurate billing also means fewer write-offs and billing corrections. If time entries are precise and well-documented, clients are less likely to dispute them, so attorneys don’t end up cutting their bills to resolve complaints.

By ensuring no billable work is overlooked, firms maximize their revenue. Furthermore, when billing is accurate and detailed, bills get paid faster, improving cash flow (clients tend to pay promptly when they can clearly see the valuable work provided).

Overall, better time tracking means lawyers spend more of their day on work that is documented and billable, rather than scrambling later to recreate timesheets or fix billing issues.

It’s a virtuous cycle: more time captured → more revenue → better financial health for the firm

Enhanced Transparency and Client Trust

Each time entry usually includes a concise description of the task performed, providing clients with a clear view of what work was done on their behalf. This level of detail builds trust.

Additionally, providing detailed bills can set a firm apart in terms of client service. It demonstrates professionalism and good communication. Some clients, such as corporate departments, may even require detailed time logs for their own internal accounting. Being able to easily comply with such requirements by pulling comprehensive time reports is a competitive advantage.

Better Resource Management

Having detailed data on how lawyers and staff spend their time allows law firm leaders to manage resources more effectively. Time tracking doesn’t just tell you how many hours were billed – it can reveal which tasks or activities are consuming the most time. With this information, firms can identify inefficiencies and make data-driven decisions on resource allocation.

For example, if time reports show junior associates spending excessive hours on routine research, the firm might decide to create a knowledge repository or invest in better research tools to reduce that time.

Or if partners are logging many hours on scheduling and administrative tasks, it might be time to hire an assistant or adopt software to offload non-billable work.

Detailed time records also help in monitoring workloads and utilization. A firm can track each lawyer’s billable hours versus capacity to ensure no one is overburdened or under-utilized.

Another resource management benefit is the ability to analyze profitability by case, client, or practice area. By aggregating time and billing data, firms can see which types of matters are most profitable and which are not meeting expectations. They can identify if certain flat-fee cases are actually taking too many hours (thus unprofitable), or if some clients consistently require lots of non-billable work.

Improved Compliance and Audit Readiness

Switching to detailed time tracking greatly improves a firm’s compliance with various billing guidelines and prepares the firm for any audits or reviews of billing practices. When every task is logged with a timestamp, description, and duration, a firm has a strong paper trail to justify its bills.

For firms handling cases where fees might be reviewed by a court (such as class actions or fee-shifting cases), detailed time entries are often essential. Courts are more likely to approve fee petitions that show granular task-based billing rather than block-billed lumps.

In terms of audit readiness, consider internal audits or even potential disciplinary audits by a bar association – having accurate, itemized time records makes these processes much smoother. Detailed records can assist with trust account audits as well, ensuring that any time billed against retainers or withdrawn from trust is properly supported by work done.

Reduced Administrative Work

While it might seem counterintuitive at first, a detailed time tracking tool can actually reduce the administrative burden on lawyers and support staff.

In block billing or manual time tracking, a common scenario was lawyers spending hours at the end of the week reconstructing their timesheets or assistants chasing attorneys for missing time logs. That’s tedious, non-billable work that nobody enjoys.

Modern time-tracking tools often come with features to streamline the entire process of time entry and billing. For example, you can use Flowace for automatic time capture, which runs in the background and notes which documents, emails, or applications they worked on and for how long. This means lawyers don’t have to constantly start/stop timers or write down every activity.

Block Billing vs Time Tracking: Key Differences

To clearly illustrate why time tracking is preferable to block billing, let’s compare them across several crucial dimensions:

Common Mistakes Lawyers Make When Tracking Time

Implementing time tracking is a big step in the right direction, but law firms must also ensure they do it correctly.

Here are some frequent mistakes and how to address them:

Waiting Too Long to Log Time

One of the most common mistakes is waiting until the end of the day to fill your timesheets. When lawyers delay logging their hours, they inevitably forget details or even entire tasks that they performed. Memory is notoriously unreliable when it comes to reconstructing a full day’s work.

Automated tools can help by capturing time in the background or sending reminders. But ultimately, each lawyer must make it a habit to capture their billable (and even non-billable) time as it happens.

Not Being Descriptive Enough

Another frequent mistake is entering time with overly generic or insufficient descriptions. For instance, simply writing “Worked on case” or “Research” as a description for several hours of work is not helpful to the client or to the attorney reviewing it later. Vague descriptions can lead clients to question the value of the work.

Detailed, clear descriptions are essential. A good time entry description should convey what was done and why it was necessary, at least at a high level.

For example, instead of “Research”, a better description would be “Research case law on landlord liability for lease breach.” Instead of “Worked on contract,” say “Drafted and revised 10-page employment contract for Client X.” The extra detail provides transparency and shows the client the substance of your work.

Relying on Manual Notes

Some attorneys still rely on jotting down time on paper (like sticky notes or a notebook) or maintaining a mental tally throughout the day. This approach is prone to errors. There are so many better alternatives: using a time-tracking app on your phone or computer, using the calendar to block out time and then convert to entries, or leveraging passive time capture tools.

If your firm has a time-tracking software (which it should if you’re aiming for accuracy), take full advantage of it. Most solutions allow quick time entry with a few clicks, or even one-click timers. Some integrate with your calendar or email. Flowace can integrate with your gmail and even record the time you spent on meetings.

Overlooking Non-Billable Hours

When focusing on billable time, many attorneys make the mistake of ignoring or failing to track their non-billable activities. It’s easy to think, “If I can’t bill it, why should I record it?”

But tracking non-billable time can be incredibly insightful. Non-billable tasks include things like administrative duties, business development, training, firm meetings, and so on. These activities don’t directly generate revenue, but they do consume significant portions of an attorney’s day. It brings to light tasks that might be streamlined or delegated.

From a work-life balance perspective, recognizing non-billable efforts prevents attorneys from feeling like unaccounted hours are simply “lost.” It validates the reality of their full work contributions.

How Automated Time Tracking Solves These Challenges

Automated solutions are game-changers for busy lawyers. Here are key ways automated time tracking addresses the issues we just discussed:

1. Real-Time Capture

Automated tools track time as you work, removing the need to log hours later. Timers can start when you open a document and stop when you close it, and some systems even detect calls or calendar meetings automatically. This immediate capture boosts accuracy and helps lawyers recover billable hours they would otherwise miss.

2. Zero or Minimal Manual Input

Modern time trackers run in the background and log your apps, documents, calls, emails, and websites. This cuts out manual notes and reduces reliance on memory since the system records work automatically.

3. AI-Based Entry Suggestions 

AI-powered tools analyze your calendar, documents, and work patterns to suggest accurate time entries. For example, they might propose a “1.0h client meeting” based on your schedule or auto-tag drafting work by recognizing case files. This reduces missed entries and improves consistency.

4. Cross-Device Time Logging 

Lawyers who work across devices can track time seamlessly through synced apps. Start a timer on your phone and stop it on your laptop—everything flows into one system. This prevents lost time, duplicate entries, and gives a complete view of your workday.

5. Integrations with Case Management & Billing

Automated time trackers integrate with case management, accounting, and billing tools. Time entries are instantly linked to the right client or matter and can move straight into invoices. This streamlines workflows and removes the need for separate data entry later.

Flowace: The Best Time Tracking Software for Law Firms

When it comes to choosing a time tracking solution tailored for legal professionals, Flowace stands out as one of the best options in 2026. Flowace is an AI-powered, automated time tracking software designed with attorneys in mind. It addresses the unique needs of law firms – from capturing every billable minute to ensuring privacy and compliance.

Key Features of Flowace Built for Attorneys

Let’s explore some key features and benefits that make Flowace an excellent choice for lawyers and law firms:

Automatic Time Capture Across All Legal Apps

Flowace automatically tracks time across all apps and websites—Word, PDFs, Outlook, Westlaw, LexisNexis, VoIP calls, and more. It runs in the background, detecting active work without requiring timers. Even quick 5-minute tasks are logged, ensuring every billable activity is captured and nothing slips through.

Privacy-Focused Monitoring

Flowace tracks activity, not content. It logs the application or document name and duration—never the text, screenshots, or keystrokes. You can exclude personal tools or websites, and all data is encrypted. This privacy-first approach maintains client confidentiality and aligns with legal ethics standards.

Billable vs. Non-Billable Tracking

Flowace lets you label entries as billable or non-billable and assign them to clients or internal tasks. This gives you a clear view of your daily and weekly utilization. By tracking both, firms understand how time is actually spent and can optimize attorney workloads and productivity.

Real-Time Productivity Insights

Flowace provides dashboards showing how your time is distributed across clients, projects and tasks. Attorneys can track progress toward daily or weekly goals, while managers can monitor team workloads. These insights help identify inefficiencies, rebalance work, and improve overall productivity.

Flowace Pricing

Flowace offers simple, per-user pricing. Every plan includes the core features of automatic time tracking, reporting, and support, so even small firms get full functionality. Larger firms can opt for plans that include additional admin controls, integrations, or custom onboarding.

Best For

Flowace is an ideal time-tracking solution for:

Step 1: Educate Your Team
Explain why the firm is moving away from block billing. Highlight lost revenue, client distrust, and compliance risks. Show how detailed time tracking improves accuracy, trust, and attorney earnings.

Step 2: Standardize Time Entry Rules
Create simple guidelines for how time should be recorded. Set minimum description requirements, define task codes, and ensure invoices follow a consistent format.

Step 3: Implement Automated Time-Tracking Software
Choose a tool with automatic time capture and legal-friendly features. Start with a pilot group, refine settings, then roll it out firm-wide with training and ongoing support.

Step 4: Audit Billing Data Monthly
Review time logs for gaps, check description quality, compare billed vs. worked hours, and ensure compliance with all billing rules. Correct issues early.

Step 5: Gather Client Feedback
After a few billing cycles, ask clients whether the detailed invoices are clearer. Track payment times, note disputes, and adjust your process based on their input.

Final Thoughts

The legal industry is evolving. Law firms that cling to outdated block billing practices risk falling behind in efficiency. From a client’s perspective, accurate time tracking is non-negotiable moving forward. Embracing this change demonstrates that your firm is modern, ethical, and committed to delivering value. It may require effort to transition, but the rewards are well worth it

Ready to see how Flowace can transform time tracking for your firm? Start your free trial today or book a demo with our team and we’ll show you firsthand how these features work for a practice like yours.