Time Tracking and Billing Best Practices for Law Firms
Stop leaving money on the table. Practical tips for capturing billable hours and improving your firm's billing efficiency.
Unbilled time is one of the biggest revenue leaks in law firms. Studies suggest attorneys capture only 70–85% of their actual billable work. That means 15–30% of your effort—and your clients' value—never makes it onto an invoice.
Here's how to close that gap.
Why Time Slips Through the Cracks
Common culprits:
- Delayed entry: Waiting until the end of the day (or week) to log time—and forgetting half of it
- Vague descriptions: "Phone call" or "Research" that clients push back on
- Inconsistent rounding: Some firms round down to be "nice," others round up and risk disputes
- No system: Scattered notes, sticky reminders, and mental tallies that never get consolidated
The fix is a combination of habits and tools.
1. Track Time in Real Time
The golden rule: log time as you work, not after.
When you finish a task, pause and enter it immediately. Even 30 seconds of delay increases the chance you'll forget or underestimate. Use a timer if it helps—start when you begin a task, stop when you're done, and the duration is already calculated.
| Approach | Accuracy | Effort |
|---|---|---|
| Real-time entry | High | Low |
| End-of-day entry | Medium | Medium |
| End-of-week entry | Low | High |
| "I'll remember later" | Very low | N/A |
2. Write Descriptions That Get Paid
Vague entries invite write-downs and client pushback. Be specific:
Weak:
- "Phone call with client" (0.2)
- "Research" (1.5)
Strong:
- "Telephone conference with client re: discovery responses; discussed document production timeline and privilege log approach" (0.3)
- "Legal research re: motion to compel standard under Rule 37; reviewed Smith v. Jones and applicable local rules" (1.5)
Include:
- What you did (call, research, drafting, review)
- Who was involved (client, opposing counsel, court)
- Why it mattered (discovery, motion, settlement)
- Outcome when relevant (agreed timeline, identified authority)
3. Use Consistent Billing Increments
Most firms bill in 0.1 (6-minute) or 0.25 (15-minute) increments. Pick one and stick to it across the firm. Inconsistent rounding—rounding down for some clients and up for others—creates confusion and can raise ethics concerns.
Document your policy in your engagement letter so clients know what to expect.
4. Link Time to Cases and Tasks
When time entries are tied to cases (and optionally to tasks or matter types), you get:
- Accurate matter budgets: See how much time a case has consumed
- Profitability analysis: Compare billed vs. actual time by case type
- Clean invoices: Grouped by matter with clear line items
- Audit trail: Full history if a client questions a charge
Practice management software like MyLawyerLink keeps time entries linked to cases and clients automatically.
5. Review Before Sending
Before an invoice goes out:
- Reconcile with your calendar: Did you log that 30-minute client meeting?
- Check for duplicates: Two entries for the same call?
- Scan for write-downs: If you're reducing time, note why (e.g., "First draft took longer than expected; billing 2.0 of 2.5")
- Ensure descriptions are client-ready: Would you be comfortable defending each line in front of a judge?
6. Bill Regularly
The longer you wait, the harder it is to recall what you did—and the more likely clients are to question older charges. Aim for:
- Solo practitioners: Monthly at minimum
- Small firms: Bi-weekly or monthly
- Larger firms: Per-matter cycles (e.g., at key milestones)
Regular billing also improves cash flow and reduces the "sticker shock" of a large, infrequent invoice.
7. Leverage Templates and Automation
Reduce administrative overhead:
- Time entry templates: Pre-fill common tasks (e.g., "Initial client consultation," "Draft engagement letter") so you're one click away from a proper entry
- Invoice templates: Standard formats with your firm's branding and payment terms
- Automated reminders: Notify clients when invoices are due; follow up on overdue amounts
The Bottom Line
Better time tracking and billing isn't about nickel-and-diming clients—it's about capturing the value you provide and ensuring your practice is sustainable. Small improvements compound: capturing even 10% more of your billable time can mean significant revenue over a year.
Ready to streamline your firm's billing? Sign up for MyLawyerLink and get integrated time tracking, invoicing, and client portal payments in one place.