Time tracking software for law firms
Do you find time to handle the business development of your law office or are you overwhelmed by your current job? Do you manage to track which lawyer deals with which client and whether the client is satisfied with the service provided?
Since we are from the service sector, we were facing similar problems as you.
In order to listen to the ‘pulse’ of our business, we have developed TimeAnalytics software. Our solution allows your attorneys and associates to easily enter their hours spent on clients and activities, up to five minutes a day. In this way, you gain the information base to monitor the work of your law office and make decisions about further development. The TimeAnalytics solution saves you the time it takes to make managerial decisions and releases the energy to develop your law practice.
How can Time Analytics improve your law office?
The information collected through our software allows you to define and monitor KPIs (Key Performance Indicators) for your office. KPIs are quantitative indicators that help you monitor the current state and further development of your office.
Key performance indicators can be divided into several groups:
- Financial performance indicators
- Marketing and commercial performance indicators
- Productivity indicators of your lawyers (associates)
What are the financial performance indicators for your law office?
TimeAnalytics software allows you to track the following financial KPIs by client, lawyer (associate) or service line:
- Total hours spent: primary resource of your office are your lawyers and associate. Their contribution to your office can be quantified by their hours spent. This is the basic indicator that you use to perform most of the remaining KPIs. Please note that the movement of the total number of working hours by the specified time periods (day, week, month, year) is also of great importance.
- Share of billable hours in total hours: is your entire work for a particular client invoiced? Do you provide free legal services to your clients?
- Revenue per hour spent: what is your real hourly rate? This information is not only important to you when you charge your hourly work, but also when you work for a fixed fee. Does your realistic hourly rate meet your expectations that you had when arranging an engagement with a client?
- Customer engagement cost price (Service Line): even now, without our software, you can probably track how much revenue each customer brings to you. However, do you know how much each client costs you? As a general rule, 20% of clients make 80% of the profits of each business. Which of your clients are within the aforementioned 20%? Our solution allows you to easily calculate the cost price for each client. The cost of engagement for a client is based on the already set costs of hiring a lawyer and associate and other indirect expenses and is the basis for assessing the client’s profitability. After determining the total cost per customer, you can also track the cost per hour.
What are the marketing and commercial performance indicators for your law office?
Through TimeAnalytics software, you can track your marketing and sales goals through the following KPIs:
- Total number of clients: does your number of clients increase from month to month, year after year? We suggest you consider allocating clients to groups, where each group is made of legal entities or individuals, with the same decision makers about your engagement.
- Average number of service lines per client: from how many areas of law do you provide services to the client? Is the client even aware of all the legal areas you can cover?
- Total hours spent on commercial and marketing activities: how much time do you spend on achieving the office’s commercial goals? Are you satisfied with the commercial results, given the time invested, or do you need to change your approach to finding new clients?
What are the productivity indicators of your lawyers (associates)?
Through TimeAnalytics software, you can track the productivity indicators of your lawyers and associates:
- Total hours spent per lawyer (associate): what is the workload of each of your lawyers (associate)? Does anyone need the help of colleagues? Who has enough free time to help him?
- Lawyer (associate) work activity structure: are your partners engaged in managerial and commercial activities or are they overburdened with executive and routine activities? Is it necessary to hire a person in charge of administrative activities, or should an external agency be hired in order to relieve the rest of your team and make better use of it?
- Overtime: determined by comparing the total planned hours and hours worked. An insight into the activities of a lawyer (associate) can also conclude whether overtime is justified in the sense that it arose as a result of realistic engagement requirements, or as a consequence of being unproductive.
- Number of employees hired per project (client): did you correctly allocate your team members by client / project? Too many lawyers (associates) on a single project / client may indicate ineffective staffing. Also, if, for example, only one lawyer (associate) is involved in a major project, you might consider including another team member in the project.