By Paige Roncke, Chief Revenue Officer, Centerbase

The legal industry is at a critical inflection point where law firms can no longer identify only as legal services providers. Law firms must also be data and technology companies in order to effectively compete in the market for long-term success.  

I discussed this new landscape with Debbie Foster, CEO of Affinity Consulting, during a webinar on law firm profitability. A substantial portion of that conversation was rooted in the theory that profitability is more than a simple math formula of revenue minus cost; rather, it’s about understanding your firm's opportunity to maximize revenue streams while also minimizing costs without compromising quality of legal services.  

It’s a misnomer to assume the application of technology only minimizes cost. Yes, technology has a critical role in automating administrative tasks, optimizing billing processes and creating comprehensive and speedy communications both internally and externally. However, technology is best utilized when the full power of software is applied to maximizing potential revenue streams.  

This can be software-driven enhancements like improving time capture to create more billable hours, building reports that provide deeper insights into profitability at various levels — from individual attorneys to entire practice areas — through data clarity and availability, and utilizing that data to retain and attract stronger talent that can bill at higher rates. 

In other words, as Debbie stated, “Technology should be used as a revenue multiplier.” And multiplied revenue leads to greater profitability. 

While many firms have already made investments in technology, they may not be fully utilizing these tools. Let’s examine how technology can enhance law firm profitability by improving time tracking, managing billing, and providing actionable insights into the firm’s financial health. We'll also discuss common technology pitfalls and how to avoid them, so your firm can make the most of your technology investments. 

Where Technology Drives Profitability in Law Firms 

With the right tools, firms can unlock efficiencies that translate directly into higher profits. The key is knowing how to leverage technology effectively to improve law firm profitability, such as: 

• Improve timekeeping: It’s no secret that lawyers often fail to capture all of their time, which represents a direct loss of revenue. Automatic time capture technology can ensure that all billable hours are accounted for, leading to increased revenue. Text messages, quick phone calls, emails, a few minutes spent editing a document — all those moments add up to billed time. Time tracking software will track it all, automatically.  

• Enhance collaboration: Cloud-based technology makes it easier for attorneys and staff to collaborate, share documents, and manage cases from anywhere. It also provides access to real-time data and communication tools, enabling better decision-making and faster responses to clients, which ultimately improves client satisfaction and retention. 

• Streamline billing and reduce write-offs: Legal billing software can automate the entire invoicing process, from generating accurate invoices based on captured time to sending automated payment reminders. As a result, you’ll invoice faster and more accurately, reducing write-offs and improving cash flow. 

• Optimize resource allocation: How effectively does your firm analyze profitability by practice area, client, and individual lawyers? Practice management systems track all aspects of a case, from time spent to expenses incurred. The system will then generate profitability reports that reveal profitability across multiple dimensions. You can use the data to allocate resources more effectively, ensuring that the most cost-effective lawyers do the most profitable work. You can also use this data to make investment decisions when determining which practice areas to fund or reallocate.  

• Improve collections: Tools like online payment portals and automated payment reminders can automate and streamline the collections process, reducing the amount of time it takes to collect outstanding invoices.  

• Streamline lead management: On the marketing side of running a law firm, technology can help you respond to leads quickly and efficiently, improving your chances of converting them into paying clients. This could involve using tools like customer relationship management (CRM) software, live chat on your law firm's website, and streamlined client intake workflows. 

• Promote a culture of continuous improvement: Fostering a culture where employees are encouraged to learn and use new technology can help you stay ahead of the curve and maximize your firm’s technology investments. 

Technology Shouldn’t Be the First Budget Reduction 

Despite these opportunities to use technology as a revenue multiplier to drive significant profitability gains, many firms struggle to fully leverage the tools they have — and that often leads to cutting technology costs. But cutting costs isn’t a sustainable path to profitability. 

Consider these common pitfalls to avoid so you can maximize your technology to advance your revenue streams. 

1. Underutilizing Software Features 

Many law firms invest in technology but only use a small fraction of the available features. For example, your firm might not be taking full advantage of your practice management software’s time tracking, billing, and reporting features that could improve efficiency. Leveraging a tool’s full capabilities can not only improve efficiency but help reduce stress at work, too. Encourage continuous learning, where attorneys and staff explore new features and share tips for improving efficiency. 

2. Lack of Ongoing Training and Support 

Too often, technology implementation is treated as a one-time event rather than an ongoing process. A lot of effort goes into the rollout and not enough into continuous training to learn about the tool after it’s been implemented.  

As Debbie says:

“We really need to marry up our technology spend with building a culture of training.” 

Pay attention to new updates and features, and make sure your staff learns how to use them by providing ongoing training and support. Consider hosting monthly lunch-and-learn sessions to discuss new ways to use your tools more effectively. 

3. Not Using Technology to Attract and Retain Talent 

One of the best things technology can do for your firm is standardize processes. Sure, every lawyer prefers to do certain things differently, but technology can help you agree on standardizing core elements of practicing law and running a firm. The result goes beyond efficiency. 

New associates coming out of law school want to gain experience with modern technology — and they expect it. Maximizing your technology presents your firm as forward-thinking and committed to providing resources to work effectively, and that can help you stand out as an employer of choice.  

Newer technology presents employees with an enhanced user experience with fewer clicks, simpler and more modern interfaces, and intuitive ease of use. This streamlined experience over older systems leads to higher job satisfaction, boosting your talent retention and attraction. 

The Future of Law Firm Profitability is Powered by Technology 

Technology is no longer optional — it’s essential for creating a long-term competitive edge. Whether it’s automating time tracking, streamlining billing, or analyzing profitability across practice areas, the right tools can make all the difference in how efficiently your firm operates. 

By embracing technology and ensuring it is fully integrated into your firm’s processes, you can unlock new levels of profitability, improve client satisfaction, and future-proof your business for years to come. The key is not just investing in technology but leveraging it to its full potential—and continuously improving how you use it through ongoing training and fostering a culture the embraces technology. 

As the legal landscape becomes more complex and competitive, adopting modern law practice management software is one of the best ways to help your law firm keep up. Legal technology can greatly increase your competitive advantage, make your operations more efficient, and continuously enhance client service. 

However, this journey isn’t as simple as purchasing the first legal software you come across online. It involves a step-by-step process of assessing your firm’s needs, conducting due diligence to select the right vendor for your firm, and implementing the software. 

Based on the latest insights from Centerbase's 2024 Guide to Buying Law Practice Management Software, this article will help you navigate and simplify the path to selecting the best legal practice management software for your firm. 

Why Law Firms Change Technology 

Law firms turn to technology for a variety of proactive and reactive reasons. Proactively, firms seek opportunities to increase efficiency, improve client service, and maximize cost savings. Reactively, they are compelled to switch software when faced with challenges such as missing functionality, the need for remote work capabilities, system consolidation, data security issues, or the need to retire an old server. 

Assessing Law Firm Technology Needs 

Before embarking on the legal technology journey, take an inventory of your firm’s current technology infrastructure. Then, ask your team to identify gaps your current tech stack doesn’t fill to understand their vision to optimize law practice operations. 

By building a cross-functional team to represent your law firm's software user base and setting expectations for what the new software should accomplish, law firms can outline a clear vision for their technological needs. Be sure to consider budgets during this assessment, too.  

Choosing a Legal Software Vendor 

Once the technology needs have been assessed, the next step involves selecting legal practice management software that's right for your firm. This process requires a comprehensive review of potential vendors based on selection criteria that go beyond cost.  

Features and capabilities to consider in law firm software 

• Timekeeping
• Billing
• Accounting
• Reporting
• Calendaring
• Task management
• Document management
• Workflow automation
• Communication tools
• Client intake process
• Scalability
• Integration capabilities
• Data privacy and security
• Disaster recovery
• Training and support
• Reputation and track record

Create a short list of best law software vendors 

Now that you've researched various software vendors' offerings, make a short list of finalists, send them a request for proposal, and set up demonstrations. 

Collect your findings on how well each legal practice management software meets your team's expectations, conduct reference checks, and review terms of service and service level agreements. 

You're now ready to score the proposals, run pilot tests of the best options, run the numbers, and make a choice. 

Implementing New Legal Software 

With a vendor selected, the next step is implementation. This process may include stages like data migration, setup, configuration, and testing.

Training is also indispensable at this stage as it is vital for maximizing the return on the investment in law firm technology while also driving successful software adoption.

Just as you're evaluating the software's overall ability to meet your firm's needs, you should put equal emphasis on understanding the vendor's process for creating a smooth legal software implementation. 

Moving Forward with New Legal Practice Software 

Keep in mind, legal technology isn't a one-size-fits-all solution. It needs to be the right fit for your law firm to truly optimize operations and stay competitive in the fast-evolving legal industry. 

With the meticulous planning, careful selection, and continuous learning we've outlined, you'll be on your way to using technology as a powerful tool to enhance efficiency, improve client service, and contribute to your firm's overall success. 

Get our complete guide to buying legal practice management software for detailed tips and considerations to choose the right technology for your firm.  

In today's legal landscape, staying competitive and efficient is crucial. If your firm isn’t using an all-in-one legal practice management software to streamline firm and client operations, you’re missing out on the highest level of efficiency and competitive advantages to set your firm apart. The cost of not having such software is too great to not act.

Multiple types of productivity software exist to improve law firms’ efficiency with certain tasks, such as client intake, case management, and timekeeping. But having multiple disparate systems requires opening each one, toggling among them when switching tasks, leading to less efficiency overall, not more.

Yet, many law firms hesitate to adopt legal practice management software that could solve their efficiency woes, underestimating what law firms stand to lose by choosing the status quo. Just like neglecting IT infrastructure, ignoring legal technology can lead to significant financial and operational downsides. 

But why do law firm hesitate to adopt legal software? According to Forbes, choosing not to upgrade software is rooted in common fears, including:

• Fear of disrupting business operations
• Fear of change and the discomfort that change may cause to employees who prefer familiarity
• Fear of missing out on perceived short-term benefits, even when they understand the potential long-term benefits of modern software.

What’s the cost of not having legal practice management software?

Without legal practice management software, you’ll miss out on operational efficiency, best practices, and firm culture benefits that optimize your law practice. Let’s dive into some of the greatest potential costs associated with not implementing an all-in-one legal technology platform.

Efficient and accurate accounting

Building your general ledger accounting into your timekeeping, billing and accounting operations in one platform gives you the most efficient and accurate accounting operations.

Integrating data for each of these processes means you enter the data once, and it populates everywhere. This helps your firm avoid double-entry recordkeeping between multiple software systems, and it ensures consistent data across the entire system.

Without the right legal practice management software, you might even miss out on the ability to integrate general ledger firm and trust accounting in one place, which enables reconciliation across your client and firm accounts. With such a system, you can track every dollar in and out of your law firm.

Loss of Billable Hours 

Without streamlined processes, you and your attorneys are wasting time on administrative tasks. Legal practice management software automates billing, scheduling, and document management, freeing up time for billable work. This directly impacts revenue, as even a small increase in billable hours can lead to substantial financial gains over time. 

Data Security Risks 

Without robust software solutions, your firm could be at risk of data breaches. With the high degree of sensitive client information you handle, a data breach can be costly and damage your firm’s reputation. Legal practice management software often includes secure data storage and encryption, ensuring client confidentiality and compliance with legal standards. 

Client Dissatisfaction 

Efficient case management is key to client satisfaction. Manual processes can lead to delays, missed deadlines, and errors, frustrating clients. Legal practice management software enhances communication, tracks case progress, and ensures deadlines are met, leading to better client relationships and retention. 

Competitive Disadvantage 

Law firms that use technology risk falling behind competitors who are more tech-savvy. Legal practice management software enables firms to leverage analytics and reporting, improve marketing efforts, and offer better services, helping them stay competitive in a crowded market. 

An investment or a cost?

Investing in legal practice management software is not just about improving efficiency; it's about protecting your firm's financial health and reputation. The cost of doing nothing can far exceed the investment in the right software solution. If you're considering enhancing your practice with technology, now is the time to act. Don't let your firm fall behind — explore the benefits of legal practice management software today. 

As you search for new law practice management software, you shouldn’t settle for a painful implementation process — which is the largest obstacle preventing law firms from embracing new and better software. 

With the right components in place, a legal software platform can provide an accurate and efficient implementation with minimal business disruption — so you can start making strategic and profitable business decisions immediately.    

Here’s what you should look for in a well-mapped legal software implementation process when searching for the right vendor. 

Professional People to Organize Legal Software Implementation

As you’re narrowing down your law practice management software options, ask each vendor if they have a dedicated team that will focus on delivering an exceptional implementation.  

A comprehensive implementation team should include project managers and data specialists that organize your implementation and deliver accurate data imports, and support, training, and customer success teams that champion your firm’s success throughout your firm’s experience — including post-implementation.  

Proprietary Implementation Processes  Minimize Disruption

What is the actual implementation process for each vendor? You’ll want to understand how thoughtfully they’ve mapped each phase of implementation, and what tools will be used to migrate your firm’s data to the new software.  

Any software implementation must deliver correct data in the way you intend to use it and do so with minimal business disruption. Ask the vendors specific questions about each phase of the implementation process to understand if they can deliver on this expectation. 

Initial software implementation phases  

The early stages of an implementation process should:  

• Outline your firm’s current workflows, processes and pain paints 

• Define your requirements and goals 

• Establish a project plan and timeline, including a final implementation date 

• Introduce your stakeholders to the onboarding platform to be used 

Data migration and testing phase 

Accurate data migration is critical to successful implementation of law practice management software that your team wants to use. Look for the following in vendors’ data migration phases: 

• Opportunities to validate your data through test migrations and access to test data 

• Ability to set data expectations and configure data to fit your firm’s needs 

• Opportunities to engage with your data prior to final implementation 

Configuration, testing and training phase 

Having accurate, ready-to-use data in the system allows your team to start learning how to use the new software. Ask vendors how they handle: 

• Setting up role-based permissions 

• Training sessions to teach your team how to get value out of the system, tailored to your firm’s business and processes 

• Final functionality testing to ensure everything is ready for launch 

Final software transition and beyond 

When the official switch to the new software begins, you’ll want it to be as seamless as possible. Vendors should have plans to minimize business disruption by walking your team through: 

• Billing generation 

• Using templates 

• Reviewing financial data 

• Live support and customer success plans 

Of course, you also need to feel confident a vendor will continue to help your team reap the benefits of the new software as your firm grows and changes. 

• Is there dedicated account management? What about tech support? 

• What continued training options exist? 

• Can further adjustments be made post-implementation? 

Why organized implementations for legal practice management software matter

Your new legal technology investment should help your firm become more efficient and profitable. If it offers the features to help you accomplish your firm’s goals, ensuring it also has an efficient and accurate implementation process will allow you to extract that value from day one of using the software.  

Be selective, and hopefully you’ll experience a software implementation that minimizes business disruption like Susie Saldivar, Office Manager at Gaido & Fintzen. 

“The onboarding process [with our legal software vendor] could have been terrible and glitchy, but, instead, it was super dreamy," she says. "I couldn’t have asked for a better onboarding experience. Everything went great." 

Get all the details for what makes an accurate and timely implementation here. 

The usage of artificial intelligence has entered the legal field, and it will change the way attorneys and law firms operate for good. Now is the time to create a roadmap for adopting AI to make sure your firm is ready. Integrating this leading-edge technology can create benefits for your firm and clients, and you’ll need strategic planning to do it right. Check out this roadmap to get started. 

Educate your team on AI  

The more educated you and your firm are about AI and its implications within the legal market, the more likely you are to maximize AI’s possibilities while minimizing its risks. Seek educational opportunities to help your entire staff understand the foundations of using AI within law firms, including use cases, benefits, and ethical considerations.  

1. Attend CLE and other educational opportunities

Many vendors and associations are beginning to provide education and guidance on AI for law firms. Begin attending events through your Bar Associations, practice area groups, technology vendors, and Association of Legal Administrators. You could also invite outside subject matter experts to train your team on AI usage. 

2. Try AI products

“Rent” AI products now using SaaS pricing models to begin testing how AI could provide a competitive advantage for your law firm and staff. Many products include free trials or low-cost, short-term subscription options to get started with.  

For each product you test, have trial users fill out a rubric to help evaluate the product’s effectiveness for your firm. The rubric can document things like the product’s use cases, accuracy and performance, robustness and limitations, regulatory and ethical considerations, security, user experience, and cost.

3. Read up

Even though AI usage in the legal field is just beginning, many resources exist to help you understand the full landscape of AI. For example, the American Bar Association’s Law Technology Today often covers topics related to AI, machine learning, and automation in law practice.  

Of course, a quick Google search will produce a multitude of resources, including white papers on AI in the legal market, checklists to implement AI at your firm, and even sample AI policies to help your firm document its AI approach. 

Evaluate your firm’s technology 

To integrate AI technology effectively, your existing technology needs to be ready for it, too. That means you will need a solid technology infrastructure in place to ensure successful integration and operation of AI products when you’re ready to implement them. Consider these recommendations to get started. 

1. Move your core systems of record to cloud-based technology

Ensure your firm uses modernized cloud-based technology that supports continued enhancements and updates. By having your client data, research data, and documents in modern platforms, you increase your firm’s ability to quickly access this information within AI platforms. 

2. Research your vendors 

Speak with your current vendors to understand their AI roadmap and AI usage within their platform. Ensure you understand the underlying technology the vendor plans to use and that it aligns with your firm’s policy on AI usage.   

3. Consider API access

Understand the API access available in your current software. APIs allow you to integrate your products and data with software and could speed up the transition to using AI within your law firm. 

Form an AI committee within your firm 

Evaluating AI’s fit within your firm could be a significant undertaking, so be prepared to dedicate some resources to it. You will recoup costs incurred during this research and evaluation phase by avoiding surprises and setbacks with a well-prepared AI integration plan. 

While you might need one point of contact to organize the effort, forming an AI task force within your firm allows multiple stakeholders to weigh in, ensures diverse perspectives and user groups are considered, and helps your firm prioritize AI and other emerging technologies.  

This task force can begin identifying specific AI use cases within the firm, such as document review, contract analysis, legal research, or client communication. Prioritizing the use cases where AI technology can provide the most significant value will allow the committee to begin architecting your future technology stack to support them.  

The committee should also be responsible for drafting policies and guidance on how your staff can use AI. This helps ensure your firm factors in compliance and ethical considerations when making decisions about using AI. 

Synthesize your research and prioritize next steps 

It’s time to move from research and analysis to implementation. Synthesize information from each roadmap component above to determine your next steps. How you prioritize what AI solutions to implement will depend on your firm’s unique set of users, client needs, existing technology infrastructure, budget, and many other factors. 

Communication will be critical throughout your firm’s AI journey. Remember to update stakeholders frequently, hold training sessions to upskill your staff on AI technology and its implications for their roles, and continually monitor how AI is working for your firm and clients. 

Following these general guidelines will help you begin your AI journey. For more information on integrating AI in your law practice, check out these resources: 

• AI in the Legal Market white paper 

• Checklist for your AI roadmap 

• Sample AI policy for law firms  

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A recent study from Gartner found that almost half of workers struggle to find the information they need to effectively perform their job. Every minute that your timekeepers spend chasing down documents is a minute they can’t bill or spend delivering superior service to a client. This can hamper your firm’s productivity, force timekeepers to engage in rework, and — even worse — disappoint and frustrate clients.

A document management solution can help you stay organized, but with so many solutions on the market, how can you choose the right one for your firm? Here are the optimal features to look for in a document management solution that will take your law firm’s productivity to the next level.

1. Advanced document search and retrieval

Basic legal document management systems help law firms corral their information. They offer search functionality but often stop short of offering full text search. Unless you know generally where your document is or remember its title, it can be hard to find the file you need.

But with an advanced document management system, you can say goodbye to frantic searches for deposition transcripts or other scanned or digital documents buried deep within your digital haystack. Advanced search capabilities, including optical character recognition (OCR) technology, integrated into top-tier platforms enable legal professionals to swiftly locate relevant documents using a variety of search parameters, from keywords to metadata tags, even in PDF documents.

Leading document management systems offer metadata management tools that allow users to customize document profiles with pertinent details like case numbers, client names, and document types, facilitating seamless organization and retrieval. The best platforms ensure that your documents appear in global searches of your law firm’s network and conflict checks.

2. Document assembly and template management

Copy and paste are a thing of the past with new document assembly technology baked into advanced document management platforms. Instead of having to copy documents to create new files, attorneys can leverage template management features that shortcut the document creation process, ensuring more consistent and accurate documents as soon as new matters are opened.

Some advanced platforms also auto-fill document templates with matter and client data and include features that automatically configure page numbering.

3. Document collaboration and review

Legal work is inherently collaborative, but working in separate applications on discrete documents makes it hard to keep track of revisions and versions. Version control can become a nightmare unless you have a centralized repository, leading to errors and inconsistencies.

Advanced collaboration tools enable real-time co-authoring, version comparison, and annotation of documents. These tools foster smoother workflows and improve the accuracy and consistency of legal professionals’ work.

4. Automated time capture

Attorneys need to capture all of their time when drafting documents and emails, but precious minutes can fall through the cracks if attorneys wait until well after they have finished drafting to record their time.

Top document management platforms offer features such as universal timers and automatic time recording. These platforms help attorneys capture the time they spend in Microsoft Word and Outlook and allocate it to the appropriate matter when using Microsoft Word and Outlook. Typically, features such as these add tens of hours per timekeeper per month.

5. Integration with other legal software

The coordination of legal matters requires multiple software tools and systems, many of which may not readily work together. If you add a document management system to the mix, it may add another layer of complexity to legal work.

Advanced document management platforms that integrate seamlessly with case management systems, email and messaging software, and other systems streamline data sharing and workflow automation, boosting efficiency and productivity. They also give attorneys the ability to create, print, email, and sign files right from the platform’s workspace. Leading systems send attorneys notifications when documents are signed and updated, accelerating the document approval process. These systems also often integrate with email systems, so users can assign messages to the appropriate matter without having to switch applications.

Streamline your law firm’s document management process

Practicing law is challenging, but poor document management doesn’t have to make it even more difficult. From advanced search capabilities to timekeeping, top-of-the-line document management systems like Centerbase offer a comprehensive arsenal of tools that help law firms simplify document workflows, enhance collaboration, and deliver exceptional client service.

To sign up for a live demo of Centerbase’s new native document management solution, click here!

In most law firms, efficiency, productivity, and profitability are measured in ticks of the clock. Yet while time tracking is a law firm’s lifeblood, it’s also the bane of timekeepers’ existence. Many attorneys still track their time manually and wait till the last minute to figure out where all the hours went. By that point, memories have faded, and time is lost — not to mention how difficult it is to track time across multiple applications and devices.

Fortunately, it doesn’t have to be that hard. And while many legal practice management software platforms offer basic time-tracking features, leading solutions offer greater functionality that takes the pain out of tracking time. Let’s look at the five advanced timekeeping features that can help you capture more billable hours and elevate your law practice.

1. Automated timekeeping

For accurate billing, you have to capture all of your billable hours. But that’s easier said than done in a world where attorneys and other timekeepers face constant interruptions, switch rapidly between tasks and matters, and work from places other than an office. With the constant time pressure on attorneys, paralegals, and other timekeepers, there’s hardly enough time in the day to get the work done, much less write down every task they complete.

That means by the end of the week (and sometimes month), timekeepers have to resort to piecing together their hours, a painstaking process that leads to lost time in two ways. First, attorneys often can’t remember all of their time billed in a week (much less month), and attorneys then have to waste precious time they could allot to billable matters reconstructing their timesheets. Research shows that law firms lose up to 30% of their fees when they don’t capture time concurrently with their work.

Advanced platforms include automated features that help timekeepers track every last billable second, turning timers on and off automatically when they detect billable activity. Leading platforms also add the ability to convert every automated time entry into a billing entry, so timekeepers won’t forget which time entry should be allocated to which matter. Data shows that an automated timekeeping feature helps law firms capture up to 200 more billable hours every month.

2. Global timer

Timekeeping should always be top of mind for attorneys. But sometimes starting and stopping times can get lost amid the busyness of the day. And when attorneys are searching for contact information for a client or reviewing versions of a contract, there’s no visual reminder to keep track of their time.

Top legal practice management platforms offer a global timer available no matter where you are in the app and regardless of whether you’re working on a desktop, laptop, or smart device. A global timer ensures that time entries are synchronized across all pages, so timekeepers don’t lose track of time when they move to different parts of the platform.

3. Tracking time in Microsoft applications

Switching from task to task saps valuable minutes, even when you’re just tracking your time. Research from the American Psychological Association shows that “shifting between tasks can cost as much as 40 percent of someone’s productive time.” So, when a timekeeper switches from drafting a pleading or client letter in Microsoft Word to your time-tracking system, they are losing precious seconds at a minimum — and more likely minutes.

Recording time shouldn’t disrupt your workflow; it should seamlessly integrate into your daily tasks. Leading legal practice management solutions integrate directly with Microsoft applications where timekeepers spend the bulk of their time, including Outlook and Word, enabling you to track time while drafting documents or sending client emails. Instead of requiring timekeepers to enter their time manually, integrations make automated time tracking a natural part of your workflow.

4. Automatically recording time during client interactions

Every client conversation matters — and so does the time you spend talking with your clients. Unfortunately, many attorneys have to rack their brains trying to remember how much time they spent on every conversation, and that can be hard to remember and record manually when you talk to multiple clients every day of the week.

Automated time capture features can automatically record the time spent on every call plus allocate each interaction to the right matter. Tying conversations to matters increases billing accuracy and helps avoid overbilling and underbilling, reducing the risk of client disputes, improving client trust, and raising timekeeper productivity. Leading platforms also offer secure storage for all client communications sent through their platform or device, so timekeepers can reflect back on every interaction when putting together their bills.

5. Timekeeping via mobile app

Today, few attorneys are confined to working at their desks. But manual timekeeping methods and online software have typically tethered attorneys to inflexible timesheets that they must manage in their office.

Time-tracking platforms with mobile apps allow timekeepers to track time anywhere, whether they’re at their desk or on the go. Mobile functionality caters to the dynamic, mobile nature of work today and ensures that attorneys have the flexibility to track time in the way that best suits their work style.

Capture more time — and more billables

For law firms, time is money. You need a solution that optimizes your law firm’s ability to capture time and increase your bottom line without disrupting your timekeepers’ workflow. With the right platform, you can transform timekeeping from a cumbersome task into a strategic advantage for your law firm.

If your law practice management platform isn’t making timekeeping as easy as possible with the features described above, it’s time for a change. Check out a free demo of Centerbase’s legal time-tracking software and start capturing more billable minutes.

Accounting is one of the most tedious and stressful parts of running a law firm. Thank goodness there’s technology to handle some of the most burdensome tasks. If you’ve already got a practice management application that handles your accounting, it is taking care of every task it possibly could? Is it maximizing your time? If you aren’t sure whether you have the optimal accounting software for your law firm, or if you’ve had your current solution for a while and aren’t sure whether it’s the latest and greatest option, check out the five essential legal accounting software features below and compare it with your law firm’s technology.

1. Integrated general ledger firm and trust accounting

Using multiple systems for accounting, billing, and invoicing hampers productivity and leaves your firm vulnerable to mistakes from users manually inputting data. Top-tier legal software seamlessly integrates general ledger firm and trust accounting with timekeeping, billing, and more.

Fully integrated accounting ensures that your accounting operations are not only highly efficient but also remarkably accurate. The software automatically recognizes your data, eliminating the need for manual data entry and reducing the risk of errors.

2. Centralized management of firm and trust/retainer finances

Leading law practice management platforms allow you to track your bank accounts, operating accounts, and related information in one central place. With fully compliant trust and firm accounting, you can monitor every dollar moving in and out of your firm without fear of penalties. A centralized approach provides a comprehensive view, streamlining financial management.

In these tools, you can also generate detailed accounting reports in seconds. Top legal software has built-in budget, trial balance, profit and loss, and general ledger reports. This feature allows you to filter and view your accounting data with a single click, providing valuable insights into your financial performance.

These platforms also allow you to gain insight into firm and client financials at a glance. Their dashboards will populate with customized views that allow you to see overdue bills, deposits, unbilled expenses, outstanding vendor bills, and more, saving you time and clicks. Better yet, advanced legal accounting software allows you to control access permissions, so you can restrict users and groups from editing, viewing, or sharing specific categories of data, including financial reports, billing rates, account balances, and more.

3. Streamlined management of multiple trusts and retainers

Clients often expect firms to manage multiple trusts and retainers for a single matter. Top legal software rises to this challenge by enabling easy management of multiple trusts and retainers under one or many matters. This feature enhances efficiency and meets the modern service expectations of clients.

With modern legal accounting software, you can track multiple IOLTA accounts efficiently by automatically assigning accounts for each client trust. This feature provides visibility into the flow of money in and out of your accounts, ensuring accurate and transparent financial management. These tools also perform automatic three-way trust reconciliations, comparing your bank balance to your trust ledger and to individual client ledger balances, improving compliance with state bar requirements and IOLTA best practices.

4. Automated transactions, from client payments to trust replenishment

Top legal software automates the recording of client payments. Once a payment is deposited, it’s instantly reflected in your accounts and financial statements, making your payment processes more accurate and efficient.

These systems also streamline client funds management by automatically accounting for trust/retainer funds. You can set a replenishment threshold that automatically notifies clients when their retainer funds are running low and then auto-apply replenishment funds to bills.

Some tools even have functionality that identifies matters with accounts receivable balances and available funds, allowing you to quickly create bill payments. The software facilitates smooth transactions, from identifying available funds to writing checks from your IOLTA to the operating account.

5. Increased accounting vigilance to prevent errors

Accounting accuracy is paramount for any law firm. Top legal software incorporates double-checking accounting security to limit human errors. These systems flag entries that don’t reconcile with the rest of your data, keeping your accounting data accurate, consistent, and audit-ready.

If you accept credit cards, and you definitely should to meet client expectations, your software should not only integrate with tools like Plaid that help you add, match, and reconcile credit card transactions, but it should also ensure the payment processing service fees are properly allocated to your firm’s operating account rather than the client’s trust account to avoid noncompliance with IOLTA accounting rules.

Invest in next-level legal accounting software

While basic law practice management systems can handle fundamental accounting tasks, investing in top-tier legal software unlocks advanced features that elevate efficiency, accuracy, and compliance. The comprehensive financial management capabilities that leading legal software offers streamline operations and empower law firms to navigate the complexities of modern legal accounting with confidence.

Ready to upgrade your legal accounting practices? Contact us for a free demo today.

Strategic financial planning is essential to ensure firm stability and growth. Modern law firms need precise financial data to target opportunities to improve their bottom line and set them up for success, all of which can be accomplished with industry-leading law practice management software (LPMS).

Here are five steps to optimize your law firm’s financial planning.

1. Review your law firm’s financial statements

Take the pulse of your firm’s financial health by reviewing your financial statements from your LPMS. Automated, detailed income statements and balance sheets save time and reduce the risk of errors associated with manual data compilation. Reviewing financial and performance reports can help you identify areas of concern so you can take proactive measures to address potential issues.

The most accurate records are found in an LPMS that integrates timekeeping, billing, and accounting data all in one platform. Integration helps firms avoid double-entry recordkeeping between multiple software applications and ensures data congruency across the entire system: if you enter data once, it populates everywhere.

Leading LPMS platforms also integrate general ledger firm accounting and trust/retainer accounting in one platform. For example, Centerbase’s accounting tools double-check all of your client and firm accounts and complete a three-way reconciliation of your trust accounts, comparing your bank balance to your trust ledger to the sum of your individual client ledger balances, keeping you compliant with IOLTA best practices and state bar requirements.

2. Evaluate your law firm’s financial goals

Conduct a comprehensive assessment of the financial objectives you set for the firm in the previous year. Review your progress against goals, examining aspects such as unexpected expenses, marketing outcomes, and shifts in advertising costs. A detailed analysis enables informed adjustments to your business strategy for the coming year and helps you adapt to changing market dynamics.

Your LPMS likely has features for setting and tracking financial goals that allow you to monitor your fiscal performance in real-time. Leading LPMS platforms give you easy access to key metrics with customized dashboards and reporting that allow you to quickly evaluate whether you are meeting their financial objectives and make data-driven adjustments.

3. Update your law firm’s budget

After scrutinizing whether you met last year’s goals, it’s imperative to update your firm’s budget for the upcoming year. Consider any changes in the business landscape, including new expenses or variations in revenue. Smart resource allocation and accounting for unforeseen expenditures are critical to maintaining financial stability.

Your LPMS can help you create, manage, and update budgets seamlessly. Top platforms integrate with other financial tools that allow you to adjust budget allocations based on changing circumstances, ensuring that your budget accurately reflects your firm’s financial priorities.

Understanding incoming and outgoing cash and taking preemptive steps to address potential cash flow challenges are imperative. LPMS makes it easy to track client payments, invoicing, and expense management in real-time so you can take a constant pulse on your cash flow. This data can help you negotiate extended client payment terms and manage expenses more effectively.

Identifying opportunities to reduce costs is integral to enhancing net revenue and overall profitability. Law firms can explore various strategies, including adopting more cost-effective solutions and streamlining operational processes. Your LPMS can identify areas where you can optimize costs. Check your software’s expense tracking features to analyze spending patterns and identify opportunities for negotiation with suppliers. A detailed breakdown of expenses can help you make informed decisions on cost-reduction strategies.

4. Find ways to boost your firm’s revenue streams

Finding new ways to boost your firm’s revenue can be difficult, but data from your LPMS can highlight the way. LPMS with robust profitability reporting tools can help you track profitability at the individual, practice group, office, and entire firm levels to pinpoint how to improve your firm’s financial performance. Based on your results, you may want to expand your firm’s service offerings, target new client demographics, or revisit pricing structures.

LPMS with advanced automation features, such as automated time capture, can help ensure that you are maximizing your attorneys’ billable hours. This software can also help you accelerate invoicing and follow up with slow-to-pay clients, improving your revenue stream.

5. Seek professional guidance

Engaging the services of a professional accountant or financial advisor provides valuable insights and ensures that financial decisions are grounded in expertise. Your LPMS is a collaborative platform where financial professionals, such as accountants or financial advisors, can access relevant financial data. Centerbase offers accountants a free login to help with end-of-year audits.

Run your law firm like a business

Strategic financial planning ensures modern law firms run like a business. Following these tips and optimizing your use of your LPMS can position your firm for sustained growth and profitability.

Check out Centerbase’s robust accounting and financial management features to learn how we can help you strengthen your law firm’s financial performance.