Tracking Legal Technology

In Part Iof this post published recently we looked at Electronic Billing – what it involves, why your clients use it, and what not to do when asked to comply with it. In this post, let’s examine the options available to firms that must now produce their invoicing data using this medium. Here are some things to keep in mind when moving to the world of electronic billing:

Use a software application that supports the production of electronic invoicing data files

Eastern Legal Systems supports several time tracking/billing software programs that support and are in compliance with the most commonly used electronic billing data formats:

• PCLaw
• TABS3/PracticeMaster
• Timeslips
• Time Matters/Billing Matters

Ask your clients for specific instructions for filing your invoicing data electronically

Clients will send a packet of information either via “snail mail” or in .PDF format, outlining how the data file is to be transmitted. This information includes, but is not limited to, the name of the web site for transmission, your firm’s login name and password, guidance on charging for fees and expenses – and a list of acceptable codes to use for billing.

The web site used for transmitting your data is hosted by a third-party audit agency. These vendors host online tutorials on set dates and times to explain the mechanics of uploading your data. Be sure to sign up and participate in these sessions – they contain data you will need in order to complete the information in your invoicing files.

Get help if there is something you don’t understand about the process

In agreeing to file your invoicing data electronically to keep your client, you’ve come this far – don’t fail now because you don’t completely understand the process. We understand how this works and we can help! Most firms only see the “stick” in this process – and not the “carrot” that gives your firm the edge in collecting revenue and staying ahead of your competition.

Finally, once you’ve implemented your solution and successfully transmitted your data, announce that fact to the world!

It’s amazing that we are 11 years into the 21st Century; yet many firms will actually turn down clients and reject work because they have to file their invoices electronically. Electronic billing is now a fact of life for almost all of the Fortune 2000 companies, state & municipal government agencies, technology firms, and the list continues to grow. Announce your support for electronic billing in your marketing materials – and go play with the big kids on the block.

“Our biggest client contacted us and said we are no longer allowed to send them a paper bill. We have to do something like send the bill electronically. Does that mean we can e-mail them a .PDF?”

We’ve heard this question, and questions like this, for many years, and the frequency is increasing. Electronic Billing – or, more accurately, Electronic Data Interchange (EDI) – is a common way to exchange time and billing information in an electronic format for many industries today. There are over 250 different types of electronic billing data formats The most common formatsused in the legal industry are:

• LEDES 1998B
• LEDES 2000
• Litigation Advisor
• Chubb Legalgard
• Data Clearinghouse
• Law Audit Services (LAS)
• TyMetrix
• Examen

Why do companies want electronic billing?

Global and domestic corporations are under pressure to reduce their costs and slash spending. Firms that provide outside services (especially legal services) are a natural target.

What’s involved with electronic billing?

There are two sides to this process –

• Software applications that allow firms to produce electronic invoicing data files
• Products and services that interpret said files and make it possible for firms to receive invoicing data.

Firms that have to produce electronic invoicing data files often go to incredible (as well as costly and inefficient) lengths to avoid doing what their paying clients want them to do.

• They continue to send paper bills and complain they don’t get paid, even though they’ve received several notices that this billing method (i.e., paper) is no longer a feasible method to use.
• They try to send their bills in .PDF format and profess surprise when informed that this is not electronic billing.
• They pay their staff to print out worksheets from their time and billing application, then manually re-enter the data on their clients’ web sites.
• They ask their I.T. consultants (who have no experience in this field) to cobble together inadequately constructed invoice data files that “sorta kinda” look like what the client wants, in the hope they will be accepted.

 Feigning ignorance or spending large amounts of man-hours manually editing or re-entering data to try to meet clients’ invoicing requirements is not acceptable in 21st century legal technology. Yet many firms continue to push back when instead they should be trying to understand electronic billing – and seeing what advantages can be gained from it.

Has your firm been informed it must now submit your invoicing data electronically? What have you been required to do? How’s it working out for you? Please post your comments here.

In Part II of this post, we’ll examine the nitty gritty of the electronic billing process, referencing various legal billing software products,  and discuss how you can make it work for your firm. If you can’t wait, please contact us at 1-877-ELS-0555 for advice and support with your electronic billing needs.

Having just come from Legal Tech-NY last week, I’m impressed with all of the applications available to help users track their time and expenses.  Software programs, iPhone apps, iPad apps, internet gateways, hosted applications…  What a wonderful age to be in!

Nevertheless, the fact remains that we hate to take the time to record our time.  It’s amazing that so many firms still delegate the task to one or two overworked people.  So let’s put this in terms that anyone can understand –

When people record their own time and expenses, an organization can gain as much as one extra billable hour per person per day!

Anyone care to do the math on that?

Here’s another way to look at it:  Please answer the following questions –

1. How much additional billable time per day do you expect a timekeeper could capture by using an efficient billing solution?                                                            _____ minutes
2. How many days does your typical timekeeper bill time each year? (Hint: there are, on average, 220 work days per year)                                                 _____ days
3. How many timekeepers will track time?                                             _____ people
4. What is the average billable rate at your firm?                                   _____ per hour

If I say 60 extra minutes times 220 work days per year times 5 people with an average billable rate of $150.00 per hour… Wow, I think I could retire early!

Eastern Legal Systems is proud to support great time tracking and billing applications such as Sage Timeslips, LexisNexis PCLaw  and Tabs3/PracticeMaster.  Continue your New Year’s resolution to be more productive – and profitable.  Call us at 1-877-ELS-0555 for  answers to your time billing questions and support.