Time Tracking and Billing: How to Capture Every Billable Minute

Are you confident you’re capturing all your billable time? Most attorneys aren’t. Studies show lawyers lose 10-30% of billable hours due to poor time tracking habits.

That’s not just lost revenue—it’s devalued expertise and underpriced services. Let’s fix that.

The Real Cost of Poor Time Tracking

For Hourly Billing

If you bill at $300/hour and lose just 30 minutes per day:

Daily loss: $150
Weekly loss: $750
Annual loss: $39,000

For a small firm with 3 attorneys, that’s over $117,000 in lost revenue annually.

For Flat-Fee Matters

Even if you don’t bill hourly, time tracking matters. It helps you:

Price future flat-fee engagements profitably
Identify which matters are actually profitable
Spot inefficiencies in your workflows
Justify value to clients

Why Attorneys Struggle with Time Tracking

It’s disruptive. Stopping mid-thought to log time breaks concentration.

It’s easy to forget. Six hours later, you can’t remember if that research task took 20 minutes or 40.

It feels tedious. Manually typing descriptions for every six-minute increment is exhausting.

The tools are clunky. Many time tracking systems require too many clicks and fields.

Solution: Automation and better habits.

Modern Time Tracking Strategies

1. Capture Time as It Happens

Use running timers. Start a timer when you begin a task. Stop it when you finish. Tools integrated with your practice management software make this seamless.

Enable one-click time entry. Quick buttons for common tasks:

“Email with client”
“Draft motion”
“Legal research”

Customize templates for your practice area to minimize typing.

2. Automate Time Capture

Modern tools can automatically track:

Document time: Track time spent in Word, Adobe, or other drafting tools
Email time: Capture time spent reading and writing client emails
Call time: Log duration of phone calls automatically
Calendar time: Convert meetings into time entries

Example: You spend 45 minutes in a document titled “Smith_Complaint_Draft.docx.” Your system suggests a time entry:

Client: Smith
Matter: Personal Injury - Auto Accident
Task: Draft Complaint
Time: 0.75 hours

You review and approve in seconds.

3. Track Non-Billable Time Too

Why track time you won’t bill?

Profitability analysis: Understand true cost of each matter Efficiency improvements: Identify where you’re spending unproductive time Flat-fee pricing: Know exactly what matters cost to handle Write-offs visibility: See patterns in written-down time

Categories to track:

Administrative tasks
Business development
CLE and training
Internal meetings
Pro bono work

4. Use Activity Codes and Task-Based Billing

Instead of vague entries like “Legal work,” use specific UTBMS (Uniform Task-Based Management System) codes:

L110: Legal Research
L120: Fact Investigation
L210: Pleadings - Drafting
L310: Discovery - Drafting
C110: Communication - With Client

Why it matters: Sophisticated clients (and their auditors) expect this level of detail. It also helps you analyze where time is actually spent.

5. Batch-Review and Approve Daily

Don’t wait until month-end to review time. Set aside 10 minutes at day’s end to:

Review auto-captured time entries
Add any missed activities
Edit descriptions for clarity
Assign to correct matter and client

Pro tip: Do this before you shut down for the day. Memory fades fast.

Billing Best Practices

Invoice Promptly and Regularly

Don’t wait until matter conclusion to send invoices for hourly work. Monthly billing:

Improves cash flow
Reduces sticker shock for clients
Identifies billing disputes early
Shows ongoing value

Automate invoice generation on a set schedule. Let the system draft invoices; you review and send.

Write Clear, Detailed Descriptions

Compare these time entries:

❌ Bad: “Legal research - 2.5 hours” ✅ Good: “Research Missouri case law on landlord’s duty to maintain common areas; drafted memo summarizing holdings from Johnson v. ABC Properties and related cases - 2.5 hours”

Detailed entries:

Justify your value
Reduce client questions
Survive fee audits
Help you remember what you did

Use Value-Based Write-Ups (Strategically)

If you delivered exceptional value, consider writing up time:

Emergency motion filed same day
Result that significantly exceeded expectations
Work that prevented major client losses

Document the value: Explain why the result was worth more than the hours invested.

Block Bill When Appropriate

For sophisticated clients or large matters, consider block billing for efficiency:

“Review and respond to 14 emails from opposing counsel regarding discovery disputes; drafted letter outlining our position on interrogatory objections; conferred with client regarding strategy - 3.2 hours”

Warning: Some clients and courts disfavor block billing. Know your audience.

Offer Multiple Payment Methods

Make it easy to pay you:

Credit cards (even with processing fees, faster payment is worth it)
ACH/bank transfer
Online payment portal
Payment plans for large invoices

Data shows: Firms offering online payment get paid 30% faster on average.

Common Time Tracking Mistakes

Mistake #1: Waiting Until End of Day

Problem: Memory fades. You underestimate time spent. Solution: Use running timers or capture time immediately after tasks.

Mistake #2: Rounding Down Too Often

Problem: “That email was only 3 minutes, I won’t bill it.” Solution: Track it anyway. Short tasks add up. You can always write off later if needed.

Mistake #3: Not Tracking Admin Time

Problem: Can’t see true cost of matter. Solution: Track everything. Mark as non-billable if appropriate.

Mistake #4: Vague Descriptions

Problem: Client disputes bill because they don’t understand value. Solution: Write descriptions a non-lawyer would understand and appreciate.

Mistake #5: Using Billing Increments That Don’t Match Your Rate

Problem: Billing in 0.1 hour increments (6 minutes) at $300/hour means $30 for a 3-minute email. Solution: Consider your minimum billable increment. Some firms use 0.05 (3 minutes) for quick tasks.

Technology Features to Look For

A modern time and billing system should offer:

✓ One-click timers for common tasks ✓ Mobile time entry from phone/tablet ✓ Automatic time capture from documents and emails ✓ Customizable task templates for your practice area ✓ Batch time entry for multiple similar tasks ✓ Approval workflows for review before billing ✓ Flexible billing rates (attorney, matter type, task) ✓ UTBMS task codes for enterprise clients ✓ Trust accounting integration for retainers and IOLTA ✓ Invoice customization with your branding ✓ Online payment processing with client portal ✓ Reporting and analytics on realization rates, write-offs, aging AR

Metrics to Monitor

Track these KPIs monthly:

Realization rate: (Billed hours ÷ Worked hours) × 100

Target: 85-95% for most firms

Collection rate: (Collected revenue ÷ Billed revenue) × 100

Target: 90%+ within 60 days

Average days to payment: Time from invoice to payment

Target: <45 days

Write-off rate: (Written-off time ÷ Total recorded time) × 100

Target: <10%

Billing time lag: Days between work performed and invoice sent

Target: <30 days

Poor metrics in any area indicate opportunities for improvement.

Creating a Time Tracking Culture

For firms with multiple attorneys and staff:

Lead by example. Partners must track time diligently.

Make it easy. Invest in good tools and training.

Review regularly. Monthly meetings to review time tracking and billing metrics.

Incentivize accuracy. Tie bonuses to realization rates, not just hours worked.

Celebrate wins. Recognize team members who improve billing efficiency.

For Flat-Fee Practices

Even if you don’t bill hourly, track time to:

Ensure profitability: Know if your flat fees cover actual costs Identify inefficiencies: Spot tasks that take longer than expected Price future work: Use historical data to set accurate flat fees Show value: Demonstrate hours invested even when not billing hourly

Pro tip: Share time invested with flat-fee clients at matter conclusion: “Though you paid a flat fee of $3,000, we invested 12.5 hours in your case, which at our hourly rate would have been $4,500. We’re glad this approach provided you with certainty and value.”

The Bottom Line

Time is your inventory. Track it as carefully as a retailer tracks merchandise.

With modern automation, time tracking doesn’t have to be painful. The right tools and habits help you capture every billable minute, bill confidently, and get paid faster.

That’s not just good business—it’s respecting the value of your expertise.

Ready to stop leaving money on the table? Lawmatics’ integrated time and billing features make it easy to capture, bill, and collect efficiently. See it in action or explore time & billing features.