Using A Flat Fee Billing Structure? Why You Still

Need Attorney Billing Software

Presented by:LexisNexis

http://www.lexisnexis.com

Flat Fee Billing Vs Billable Hours

n The billable hour is the standard fee model used by law firms all over the world.

n However, some practices are turning to a new flat-fee rate structure.

n These flat-fee rates better benefit both the clients and the law practices.

n Even in a flat-fee structure, attorney billing software is useful for analyzing costs, tracking productivity and billing complex cases.

Advantages Of Flat-Fee Billingn Many cases are routine, which means

an attorney can quickly look at a case and estimate the time needed to complete the case.

n In these cases, a flat-fee makes sense. Taking the time to enter the hours into the legal billing software isn’t necessary, but is helpful for tracking purposes.

n In cases like these, why not negotiate a flat-fee?

Advantages Of Flat-Fee Billing

n Flat fees lead to more efficient legal operations and gives the firm a chance to save time and money.

n If the practice gets the case finished more quickly, they can take on more work and make more money.

n Clients prefer a flat-fee schedule because there aren’t any surprises or billing disputes.

n The firm won’t have to produce attorney billing software reports to back up disputed fees.

How To Instill Flat-Fee Billing

n New legal billing software makes flat-fee billing popular, due to the ability to analyze costs.

n Firms can now look at a similar case and estimate the time and labor necessary for the new case.

n Experienced attorneys can usually calculate accurate and fair fees for all but the most complex cases.

Does Flat-Fee Billing Work For All Cases?

n Not all cases should be charged on a flat-fee basis.

n Some will require traditional billable hours that are tracked with attorney billing software.

n Some cases can combine a traditional billing structure alongside flat-fee structure for less complex portions of the case.

n The most important thing is to consider billing an open negotiation with a client. The last thing a firm wants is to alienate a client and lose future business and referrals.

Tracking Hours With Flat-Fee Billing

n Attorney billing software is still valuable even if most of a firm’s cases fall under flat-fee billing.

n The software allows the firm to monitor the hours worked and evaluate the efficiency of the law practice.

n The software also helps determine if the current fees are appropriate for certain cases.

n As the firm becomes more efficient, it may be able to lower fees or increase case load.

n Alternatively, a firm can raise prices if it finds that cases were priced too low.

Transitioning To Flat-Fee Billing

n Firm leadership should expect that the transition to flat-fee billing is a gradual one.

n As more clients and attorneys become used to flat-fee billing, the firm can increase the cases that use this fee structure.

Flat-Fee Billing: Win-Win Situation For Client And Firm

n Attorneys have the motivation to work more efficiently, meaning now the firm can take on more work and clients get a greater value for their dollar.

n Legal billing software helps attorneys analyze costs, track productivity and bill more complex cases to the benefit of both client and practice.

About LexisNexis

n LexisNexis is a leading provider of content-enabled workflow solutions designed specifically for professionals in the legal, risk management, corporate, government, law enforcement, accounting and academic markets.

n The company can customize its products to the needs of the modern law firm and offers unique features that generic software solutions cannot.