Law Office Manager

Make Every Minute Count: Best Practices for Year-End Timekeeping and Billing

By Camille Stell

As the end of the year approaches, many law firms feel increased billing pressure. Clients want to close out matters, attorneys want to hit revenue goals, and accounting departments are racing to finalize the books. For paralegals and staff, this is the season when accurate, consistent, and timely timekeeping is more important than ever.

Why Detailed Timekeeping Matters

Incomplete or vague billing entries can create delays, client pushback, or even write-offs. A client who receives an invoice that says simply “research” or “emails” may question the value. But when the entry specifies “legal research on statute of limitations defense” or “emails with opposing counsel re: discovery responses,” the client sees a clear connection between your effort and their case outcome.

Paralegals are often the bridge between attorneys and billing systems. By keeping meticulous records and encouraging others to do the same, you help ensure every hour worked translates into billable, collectible revenue.

Here are some best practices about why detailed timekeeping entries are so important, and how to do them well:

  • Billing Accuracy: Clear, specific entries help ensure clients understand the value of the work performed. “Drafted contract” is less persuasive than “Drafted indemnification clause in supplier contract.”
  • Compliance & Ethics: Many firms and clients require precise billing descriptions to meet professional responsibility standards and avoid billing disputes.
  • Defensibility: In the event of an audit or fee challenge, detailed entries show exactly what was done, when, and why.
  • Internal Metrics: Time data is often used to measure efficiency, staffing needs, and profitability. Vague entries undercut the usefulness of these metrics.
  • Client Confidence: Clients are more likely to pay promptly when they can see the connection between the work described and their case progress.

Best Practices for Detailed Entries

  1. Be Specific & Descriptive
    • Avoid vague terms like “work on case” or “review file.”
    • Instead: “Reviewed client’s medical records from Dr. Smith for deposition preparation.”
  1. Break Down Tasks

If multiple tasks are performed, separate them into distinct entries. For example, instead of “Research and drafting,” use:

  • “Conducted legal research on statute of limitations for wrongful death claims.”
  • “Drafted motion to dismiss for lack of jurisdiction.”
  1. Use Active, Professional Language
    • Start with verbs: Reviewed, Drafted, Prepared, Communicated, Filed, Analyzed, Coordinated.
    • This emphasizes action and value.
  1. Record Time Promptly
    • Enter time daily (or immediately after completing a task) to avoid memory gaps.
    • Waiting until the end of the week leads to vague, incomplete, or forgotten tasks.
  1. Include the Purpose/Context
    • Note why the task was performed.
    • Example: “Reviewed opposing counsel’s discovery responses to identify deficiencies for meet and confer.”
  1. Avoid Internal Jargon
    • Write entries so that a client (or judge) who isn’t familiar with office shorthand can understand them.
    • Replace “TC w/ OC” with “Telephone conference with opposing counsel regarding deposition schedule.”
  1. Respect Confidentiality
    • Be detailed but don’t reveal strategy or privileged information.
    • Instead of “Drafted settlement proposal offering $100,000,” say “Drafted settlement proposal for client’s review.”

The Fourth-Quarter Collection Crunch

It’s not enough to send bills, firms must also collect them. Year-end is the last chance to bring cash into the firm to get on the books for tax purposes, compensation planning, budgeting, etc. Paralegals can play a key role by helping track outstanding invoices, reminding attorneys to follow up with clients, and flagging overdue accounts.

Consider these best practices:

  • Send bills promptly. The older the bill, the harder it is to collect.
  • Encourage online payments. Services like LawPay and other billing platforms make it simple for clients to pay by credit card or ACH transfer.
  • Offer payment plans. For larger balances, structured options can help clients pay sooner rather than later.
  • Review retainers. Make sure replenishments are requested before balances run dry.

Billing and Collections Best Practices for Solo and Small Firms

  • Accept credit cards. Clients expect it, and firms that accept credit cards get paid faster.
  • Use online billing platforms. Tools such as LawPay, Clio, or MyCase allow you to send digital invoices with “click to pay” options.
  • Automate reminders. Set up gentle email nudges for overdue bills.
  • Communicate early. When you anticipate a client may struggle to pay, address it before the balance grows.

Closing Out the Year Strong

As the year winds down, paralegals can help keep the firm financially healthy by:

  • Double-checking that all time entries are current.
  • Running reports of unbilled time or unpaid invoices.
  • Assisting with collections follow-ups.
  • Encouraging attorneys to adopt new billing technology.

With detailed timekeeping and proactive billing practices, you’ll help your firm finish the year strong, and start the new one on solid financial footing.

Camille Stell is the Vice President of Risk & Practice Management for Lawyers Mutual Liability Insurance Company of N.C. and the co-author of the book, RESPECT – An Insight to Attorney Compensation Plans, 2nd edition published October 2024 and available from RESPECT — An Insight to Attorney Compensation Plans. Continue this conversation by contacting Camille at camille@lawyersmutualnc.com or 800.662.8843. Along with Brenda Barnes, she is presenting a webinar for Law Office Manager members this Thursday, November 20.