Peer to Peer Magazine

March 2014

The quarterly publication of the International Legal Technology Association

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PEER TO PEER: THE QUARTERLY MAGA ZINE OF ILTA 74 WHAT CLIENTS EXPECT Clients expect legal billing to have the three C's: • Clarity • Concise, informative detail • Consistency with each invoice Many law firms struggle with billing clients. This results in bills being rejected for lack of clarity, consistency and succinct information, not to mention accuracy and adherence to specific requirements from clients. THE FUTURE OF BILLING In a discussion with Jane Bennitt, President of the LEDES Oversight Committee, on the challenges law firms will face in the future, Jane commented on the issue of billing: "While a firm's greatest marketing asset is its legal work product, the next biggest marketing device is the quality of the legal bills presented to the client from the firm." The lack of attention to quality in billing can impact negatively a law firm's brand, its relationship with the client and opportunities to obtain more work. The mainstay of date diary entries or one-line bills still exists in legal billing. However, more clients are requiring law firms include additional information, such as legal industry-standard UTBMS task codes or a variation that is client-specific. Legal billing now involves a host of complexities, including special fee arrangements, project management and e-billing. The challenges for law firms include: • Discussing billing requirements with clients • Ensuring bills are issued correctly • The capability of the systems used by law firms to accommodate client requests MAKE BILLING A PRIORITY If advice and legal services rendered to a client are first-level priorities for law firms, the billing of those services must be a close second. Law firms providing information and requirements about client agreements and guidelines to its attorneys and legal staff must also provide this information to billing support staff. In most firms, billing is handled by resources who might have a clerical background — not necessarily legal or accounting experience. While legal billing experience is helpful, understanding the terms of agreement and the client's guidelines for billing helps ensure a client receives compliant bills. Client guidelines for outside counsel and the agreement with the law firm serve as more than a reference for attorneys. The information contained in both documents is essential for preparing bills. In reviewing the agreement and outside guidelines, legal billing staff can readily identify specifics for billing — such as agreed rates, approved timekeepers, task codes or block billing — that are prohibitive under the terms of agreement. In the event the client's bills are to be submitted electronically, adherence to client billing guidelines will be mandatory in order to prevent rejection. In addition to providing the outside counsel guidelines and agreements to law firm billing staff, it is also important that law firm billing personnel have a client-side counterpart to follow-up with and resolve any issues. This level of communication is an extension of the law firm and an essential component of the client relationship. Law firms that consider and incorporate this level of service on top of sound legal representation will more often be considered clients' firm of choice. INSIDE ILTA About the Author Michelle Clark is a Business Analyst II at Baker & McKenzie. She is also Secretary of the LEDES Oversight Committee. Contact her at michelle.clark@bakermckenzie.com. Legal Billing, No Longer Just a Statement While law firms are rendering more sophisticated and complex legal services, legal billing continues to miss the mark with clients.

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