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Avoiding Common

Legal Billing Pitfalls

Erica BirstlerManager of Client Services

CosmoLex

September 15, 2016

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Seem Familiar?

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Not Using

Matter-Centric

Recordkeeping

Pitfall #1

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Five Pillars of Practice Mgmt.

▪ Legal Time & Billing

▪ Business Accounting

▪ Documents & Emails

▪ Calendar & Tasks

▪ Trust Accounting

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▪ Unpaid Amounts

▪ Unbilled Amounts

▪ Client Funds

●Operating & Trust

Important Matter Balances

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Disconnected Events,Tasks, Emails & Notes

▪ Compliance

▪ Collaboration

▪ Collection

▪ Cloud Access

Pitfall #2

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Poor Handling

of Client Funds

Pitfall #3

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▪ Earned Fee

▪ Unearned Fee

▪ Cost Advances

▪ Settlement Funds

Types of Client Funds

Deposit into Trust Account

or Operating Account?

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Don’t Do This

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▪ Show retainer balances on bills.

▪ Update balance as fees are

earned.

▪ Retainer Replenishment.

Challenges

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Unrecorded

Charges

Pitfall #4

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▪ Completed yet unbilled events & tasks

▪ Outside the office legal services.

▪ Frequent office disruptions.

Challenge - Time Tracking

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▪ Expenses are paid in

variety of ways.

▪ Expenses not allocated to

matters.

Challenge - Expense Tracking

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▪ Keep clients in the loop

▪ Establish primary method

of communication

▪ Ensure confidential

communication is secure

Pitfall #5 Communication Breakdowns

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Late Billing

VS

Pitfall #6

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Weak Collection

Efforts

Pitfall #7

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▪ Timely Billing.

▪ Uncluttered Bills.

▪ Periodic collection notices.

▪ Track retainer balances.

▪ Periodic retainer replenishment notices.

▪ Track unbilled amounts.

Efficient Collection...

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I Love Billing I Love Accounting

Pitfall #8

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#1 - Customization for Legal Accounting

#2 - Double data entry

#3 - Handling Client Funds

#4 - Client costs recovery

#5 - Allocate revenue receipts

#6 - Track income by practice area

#7 - Challenges of Credit Card Processing

Consequences of Isolated Systems

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Consider Cloud Based Application

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Questions/CommentsThank you for joining us!

Erica Birstler

CosmoLex Cloud, LLC

ebirstler@cosmolex.com

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