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Why Law Firms Prefer Time Tracking Over Block Billing

Varun Kodnani

Co-Founder

In the dynamic world of legal practice, efficient time management is not just a prerequisite; it’s the foundation upon which success is built. Attorneys navigate the delicate balance of providing exceptional legal services while ensuring they are duly compensated for their time. The age-old debate between block billing and Flowace time tracking software has persisted, but a paradigm shift is underway. More and more law firms are veering towards the precision and transparency offered by cutting-edge time-tracking tools, and for good reason.

What are billable hours for lawyers?

Before delving into the nuances of time-tracking methodologies, let’s establish a clear understanding of what constitutes “billable hours.” According to US Legal, billable hours refer to the time dedicated to a business matter, chargeable to a client based on a predetermined contractual rate. In the legal context, these billable hours are often calculated in tenths of an hour. This definition sets the stage for the meticulous tracking of attorney work, a process integral to both legal practitioners and their clients.

The Pitfalls of Block Billing

Historically, attorneys have relied on block billing to consolidate tasks over a set duration. For instance:

While block billing may seem convenient at first glance, it introduces ambiguity and confusion in retrospect. As the legal landscape evolves, this practice is losing its relevance and faces several challenges:

Ambiguity in billing

Blocks obscure the breakdown of tasks, making it challenging for clients to understand where their resources are allocated. This lack of transparency can lead to dissatisfaction and strained client relationships.

Inefficiency Unveiled

Despite its perceived simplicity, block billing masks inefficiencies within legal workflows. The inability to analyze time spent on individual tasks impedes productivity improvements, which are crucial in the legal profession.

Risk of Underbilling

Block billing carries the risk of underbilling, undermining the financial sustainability of law firms, and undervaluing the dedication of legal professionals.

Embracing Ethical Time Tracking: Best Practices for Attorneys

Be Descriptive

In the realm of billing, transparency is paramount. Your time sheets ought to include a narrative that explains the value added, as Michael S. LeBoff advised. Generic descriptions can lead to client pushback, while detailed descriptions foster understanding.

Track Your Time Immediately

Recording your time immediately after completing a task is the best way to ensure accuracy. Sally Kane emphasizes that attempting to reconstruct activities after the fact encourages time “padding” and jeopardizes the accuracy of billing records.

Write Down Everything

Especially for young attorneys, recording all time spent on tasks is crucial. It provides a comprehensive record, allowing the billing attorney to make informed decisions about what to pass on to the client, according to Michael S. LeBoff.

Avoid Block Billing

Block billing should be avoided at all costs. It introduces unreliability, devalues work, and can be perceived as an attempt to hide organizational shortcomings. Most courts disapprove of block billing due to complications in reimbursing attorney fees.

Non-Billable Hours and Firm Growth

While the focus is often on billable hours, acknowledging the importance of non-billable hours is equally vital. These hours, dedicated to administrative tasks, networking, education, and marketing, contribute significantly to the growth of a law firm.

Flowace Time Tracking Software for Lawyer

As we bid farewell to the shortcomings of block billing, the legal profession embraces advanced time-tracking tools like “Flowace Time Tracking Software. These tools seamlessly integrate into legal workflows, offering real-time insights, customization for legal nuances, and enhanced efficiency.

 

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The Flowace Advantage: Revolutionizing Time Tracking for Law Firms

Law firms seeking a robust solution for time tracking can turn to Flowace. This time-tracking app offers a seamless experience, aiding in the meticulous recording of hours, detailed task itemization, and clear and reliable billables. With features for easy report export, payroll management, and timesheet clarity, Flowace empowers both clients and managers with accurate insights into tasks accomplished.

In conclusion, the legal landscape is evolving, and so should the methodologies employed by law firms. Time tracking, especially with advanced tools like Flowace, emerges as a beacon of precision, transparency, and efficiency. Attorneys who value their time and seek to elevate their operational efficiency are steering away from outdated practices and embracing the future of legal billing.

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