Top 10 Legal Billing Pitfalls – Mistake # 6 That You Can Avoid
Pitfall # 6 – Not Properly Tracking & Allocating Expenses
While law firms focus on capturing all billable hours, they often neglect to properly track and allocate expenses for billable matters. A typical legal case requires law firms to expense items such as court fees, travel costs, witness related costs, courier fees, etc. Your firm may pay case-related expenses in a variety of ways, such as checks, credit cards and cash, which adds to the difficulty tracking and allocating expenses for each billable matter.
Legal billing software should not only make time tracking easy, but also help you to track expenses and properly allocate them. Expenses you forget to allocate to a case are lost profit. An important workflow practice is to allocate expenses to client matters as soon as you incur the expense. A legal billing program that helps you track expenses ensures that the expenses for each case are added to the client invoice automatically when the next billing cycle occurs.
Learn more about how to avoid Pitfall # 6. Register for Easy Soft’s interactive webinar, How to Avoid Legal Billing Pitfalls. The webinar covers expense tracking and allocation and how to evaluate systems that can streamline your back office operation for legal billing, trust account management and collections, and in turn, tighten state regulation compliance and improve your firm’s financial picture.