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    This blog is sponsored by Smart Time Apps. Our flagship product, Smart Time, is an all-in-one time management platform for attorneys, accountants and consultants. The Smart Time on-demand time capture and time entry application enables firms to effectively collect, track and recoup billable time, thereby increasing revenue and profitability. Our mobile apps enable you to do timekeeping anywhere, anytime.

    In this blog we will share our thoughts on timekeeping, industry best practices and how technology can help improve the process.

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LexisNexis® Law Firm Billable Hours Survey

LexisNexis®  just published it survey on law firm billable hours for the small firm segment.  The survey was conducted in May of this year and included nearly 500 responses.  Survey participants ranged from sole practitioners to 20+ attorney firms.

Besides demographic data, the survey asked two key questions:

  • How many hours on average do you work per day?
  • How many hours on average do you bill per day?

The survey reported the following results.  “The average for all 499 respondents: The average hour worked on a daily basis was 9 hours; whereas the average hours billed on a daily basis was 6 hours.  The 33% difference in hours worked vs. hours billed can be caused by a number of factors:

  • Not utilizing and/or leveraging staff for non-billable functions
  • Inefficiency of managing and billing client work
  • Goodwill issues such as: Lawyers spend some of their time engaged in networking, business development and other non-billable activities – particularly when business is slow.  Some lawyers believe they cannot bill all clients for all hours worked so they purposely “discount” the actual number of hours worked in order to keep clients happy.

According to the survey, we found that attorneys were not billing all the time they worked. There are opportunities to increase billing efficiency whether by improving capture techniques or delegating non-billable tasks to others.

To get a copy of the full survey report  click here.