Billing time tracking

The Counsel Knowledge Law Group Legal Billing and Time Tracking Policies

Overview

The Counsel Knowledge Law Group maintains transparent, ethical, and efficient billing practices that comply with legal ethics rules and provide fair value to our clients. Our time tracking and billing systems ensure accurate recording of attorney time and clear communication about legal fees.

Our billing philosophy emphasizes fairness, transparency, and value. We believe clients should receive clear, detailed invoices that accurately reflect the legal work performed and provide justification for all charges.

Time Tracking Requirements

Mandatory Time Recording

All attorneys and legal staff must record time contemporaneously:

• Daily Recording: Record time daily, not retrospectively
• Detailed Descriptions: Provide specific, detailed descriptions of work performed
• Time Increments: Record time in six-minute increments
• Accurate Timing: Record actual time spent, not estimated time

Time Entry Standards

All time entries must include:

Required Elements

• Date and Time: When work was performed
• Client/Matter Identification: Specific client and matter references
• Task Description: Detailed description of work performed
• Time Spent: Actual time in tenths of hours
• Billing Rate: Applicable billing rate for timekeeper

Acceptable Descriptions

• Specific Tasks: "Reviewed defendant's motion for summary judgment"
• Research Activities: "Researched case law on statute of limitations"
• Communication: "Telephone conference with client regarding settlement offer"
• Document Work: "Drafted complaint alleging breach of contract"

Unacceptable Descriptions

• Vague Entries: "Worked on case" or "Legal research"
• Block Billing: Combining multiple tasks without specific time allocation
• Rounded Time: Inflating time to round numbers
• Non-Legal Tasks: Administrative work unless specifically billable

Billing Rate Structure

Attorney Billing Rates

Billing rates are established based on:

• Experience Level: Years of practice and expertise
• Practice Area: Specialized knowledge and market demand
• Geographic Location: Local market rates and cost of living
• Performance: Individual attorney performance and client satisfaction

Partner Rates: $500-900 per hour Associate Rates: $300-600 per hour Of Counsel Rates: $400-700 per hour Paralegal Rates: $175-300 per hour

Rate Adjustments

• Annual Adjustments: Rates reviewed and adjusted annually
• Performance-Based: Adjustments based on attorney performance
• Market Adjustments: Rates adjusted to reflect market conditions
• Client-Specific: Custom rates negotiated for specific clients

Billing Methods

Hourly Billing

Most matters are billed on an hourly basis:

• Standard Method: Time spent multiplied by applicable billing rate
• No Minimums: Bill only for time actually spent
• Detailed Invoices: Itemized listing of all time entries
• Expense Reimbursement: Separate billing for costs and expenses

Alternative Fee Arrangements

Flat Fees

• Fixed Amount: Predetermined fee for specific legal services
• Scope Definition: Clearly defined scope of services included
• Change Orders: Additional fees for work outside original scope
• Refund Policy: Refund procedures for unused portions

Contingency Fees

• Percentage Basis: Fee calculated as percentage of recovery
• Minimum Requirements: Meet state bar contingency fee rules
• Written Agreement: Detailed contingency fee agreement required
• Expense Responsibility: Client responsibility for costs and expenses

Hybrid Arrangements

• Blended Rates: Combination of hourly and flat fee components
• Capped Fees: Maximum fee caps with hourly billing up to limit
• Success Bonuses: Additional fees for exceptional outcomes
• Retainer Plus Hourly: Retainer deposit with hourly billing

Expense Billing and Reimbursement

Billable Expenses

Clients are responsible for reasonable expenses incurred:

Standard Expenses

• Court Fees: Filing fees, service of process, court reporter fees
• Expert Witnesses: Expert witness fees and deposition costs
• Document Production: Copying, scanning, and document retrieval
• Travel Costs: Airfare, lodging, and transportation (with prior approval)
• Outside Services: Mediation, arbitration, or other third-party services

Expense Policies

• Reasonable Costs: Only charge for necessary and reasonable expenses
• Prior Approval: Obtain client approval for expenses over $1000
• Documentation: Maintain receipts and documentation for all expenses
• Competitive Rates: Use competitive vendors and negotiate favorable rates

Non-Billable Expenses

• Internal Costs: Firm overhead, software licenses, office supplies
• Marketing Expenses: Business development and client entertainment
• Staff Training: Continuing education and professional development
• Technology Infrastructure: Computers, networks, and communications

Billing Cycles and Procedures

Monthly Billing Cycle

• Cycle Close: Billing cycle closes on the last business day of each month
• Invoice Generation: Invoices generated within 5 business days
• Client Review: Clients have 15 days to review invoices
• Payment Terms: Net 30 days from invoice date

Invoice Format and Content

Required Invoice Elements

• Firm Information: Complete firm contact information and bar numbers
• Client Information: Client name, address, and matter reference
• Billing Period: Dates covered by the invoice
• Time Detail: Detailed listing of all time entries with descriptions
• Expense Detail: Itemized listing of all expenses with receipts
• Total Amount: Clear calculation of total charges
• Payment Instructions: How and where to submit payment

Invoice Standards

• Professional Format: Clean, organized, and easy to read
• Detailed Descriptions: Sufficient detail to understand charges
• Mathematical Accuracy: Correct calculations and totals
• Compliance: Meet state bar requirements for invoice format

Trust Account Management

Client Trust Accounts (IOLTA)

The Counsel Knowledge Law Group maintains separate trust accounts for client funds:

Account Requirements

• Separate Accounts: Funds segregated from firm operating accounts
• Interest-Bearing: IOLTA accounts earn interest for legal services programs
• Proper Designation: Clearly identified as client trust accounts
• Regular Reconciliation: Monthly reconciliation of all trust accounts

Fund Handling Procedures

• Deposit Protocols: Prompt deposit of client funds
• Withdrawal Controls: Dual authorization for trust account withdrawals
• Record Keeping: Detailed records of all trust account transactions
• Audit Trail: Complete documentation of fund movements

Retainer Management

• Retainer Deposits: Held in trust until earned through services
• Billing Against Retainer: Invoice charges against retainer balance
• Refunds: Prompt refund of unused retainer portions
• Client Notification: Regular reports on retainer balance status

Billing Disputes and Adjustments

Client Disputes

Procedures for addressing billing concerns:

Initial Review

• Contact Billing Department: Clients contact billing coordinator first
• Review Invoice: Detailed review of disputed charges
• Attorney Consultation: Involve responsible attorney as needed
• Resolution Discussion: Discuss findings and potential adjustments

Formal Dispute Process

• Written Dispute: Client submits written description of dispute
• Investigation: Thorough review of time entries and supporting documentation
• Mediation: Attempt to resolve through discussion and negotiation
• Adjustment Determination: Make appropriate billing adjustments

Write-Off Policies

• Discretionary Adjustments: Limited authority for billing adjustments
• Documentation Requirements: Written justification for all write-offs
• Approval Process: Management approval for significant adjustments
• Tax Implications: Proper accounting treatment of adjustments

Technology and Efficiency

Billing Software Requirements

The Counsel Knowledge Law Group utilizes comprehensive legal billing software:

• Time Tracking: Integrated time entry and matter management
• Invoice Generation: Automated invoice creation and delivery
• Client Portal: Secure client access to billing information
• Reporting Tools: Detailed financial reporting and analytics
• Trust Accounting: IOLTA compliance and trust account management

Efficiency Initiatives

• Standardized Rates: Consistent rate application across similar matters
• Template Use: Standardized invoice formats and language
• Electronic Delivery: Email and portal delivery of invoices
• Payment Processing: Online payment options for client convenience

Compliance and Ethics

Ethical Billing Requirements

• Reasonable Fees: Charge only reasonable fees under prevailing circumstances
• Written Agreements: All fee arrangements in writing
• Regular Communication: Keep clients informed about fees and costs
• No Undisclosed Fees: Avoid hidden fees or improper fee sharing

Regulatory Compliance

• Bar Association Rules: Comply with state bar fee rules
• Client Protection: Protect client interests in billing matters
• Record Retention: Maintain billing records for required periods
• Audit Preparedness: Ready for bar association or client audits

Training and Quality Assurance

Staff Training

All billing personnel receive training on:

• Time Entry Standards: Proper time recording and description requirements
• Ethical Billing: Compliance with legal ethics and billing rules
• Software Usage: Effective use of billing and time tracking systems
• Client Communication: Professional handling of billing inquiries

Quality Reviews

Regular quality assurance processes:

• Invoice Audits: Random review of invoices for accuracy and compliance
• Time Entry Reviews: Verification of time entry quality and detail
• Client Feedback: Monitor client satisfaction with billing processes
• Process Improvements: Implement improvements based on audit findings

Financial Policies Integration

Integration with Firm Finances

• Budget Planning: Billing projections inform firm financial planning
• Cash Flow Management: Monitor accounts receivable and collections
• Profitability Analysis: Track matter and practice area profitability
• Rate Optimization: Adjust rates based on market and performance data

Financial Reporting

• Monthly Reports: Billing and collection summaries for management
• Client Reports: Aging reports and collection status updates
• Performance Metrics: Billing efficiency and realization rate tracking
• Trend Analysis: Historical billing patterns and forecasting

Questions and Support

For billing questions or concerns, please contact Billing Manager at [email protected] at [email protected] or extension 200.

Additional Resources:

• Client Billing Guidelines
• Time Entry Best Practices Manual
• Fee Agreement Templates
• Billing Software User Guides