Tabs3 Practice Management Blog for Law Firms

When your invoicing system is working against you, every month is spooky season. Struggling with the billing function and the impact on profitability can be downright chilling. Too many firms are caught in a web of scary billing problems, but you can break free by avoiding these seven mistakes.  

👉 Check out The Midsize Law Firm Survival Guide for more information about how Tabs3 can benefit your firm

1. Late time entry

Why it is scary: Time capture is one of the legal industry’s biggest challenges. Legal professionals understand its importance, but every minute spent composing a fee entry is time away from client matters.  

Being pulled in both directions takes a toll. Time gets lost because it is not entered contemporaneously. When the bills absolutely must go out, everyone scrambles to enter time and approve draft invoices. Bills may go out late as a result, extending the time it takes to get paid. Workflow and cash flow suffer. 

Late time entry is usually caused by: 

• Difficult and/or labor-intensive time entry process. 

• Workflows and processes that do not support contemporaneous time tracking.  

• Law firm culture relating to the importance of time entry.
   

How to vanquish it: Clear policies about time entry, with strong support from leadership, are crucial. Those policies should be backed up with easy-to-use, mobile-friendly time entry software, so that timekeepers can quickly enter time without interrupting their workflows.

Tabs3 Cloud includes Tabs3 Billing, which allows timekeepers to securely record time in seconds from any browser: smartphone, tablet, laptop, or desktop. 

2. Irregular billing cycles

Why it is scary: Ad hoc invoicing can seem like a time-saver, especially for matters with flat fees, retainers, and long timelines. But it creates more problems than it solves, like: 

• More work collecting bills because clients are not accustomed to a regular billing cadence and the work you are billing for has faded in the client’s memory. 

• More time managing clients because they are not getting regular reminders (in the form of invoices with descriptive fee narratives) about the work you are doing for them. 

• More headaches with invoice approval because timekeepers’ memories are no longer fresh. 

• Less efficiency in the billing function because of unpredictable spikes in billing and collections work. 

• Irregular cash flow and potentially non-compliant trust accounting if client funds are not moved to the operating account timely.
   

How to vanquish it: The best practice is to invoice monthly. For alternative fee or retainer matters, your invoice is an opportunity to remind the client that you are working on their matter and that finances are settled monthly. For hourly work, monthly invoices keep clients’ financial obligations top of mind, keep cash flowing, and promote efficient billing.

Tabs3 Billing makes monthly invoicing easy. It can accommodate virtually any fee agreement and remembers your settings so invoices are automatically filled in with the correct information, including time entries. You can even complete your internal statement approval process (pre-billing) electronically. 

3. Vague or unclear fee narratives

Why it is scary: Ambiguous, fragmentary, or unclear fee entries make bills harder to collect and clients harder to manage. That is true even in flat fee cases where you do not provide a full hourly breakdown. Consider that: 

• Many business clients will outright reject block billing or items with inadequate fee narratives. 

• Individuals are less likely to pay promptly and remain engaged in their cases when they do not understand what is happening. 

• Flat fee clients are more likely to question the reasonableness of your fee when they do not receive regular descriptions of the work you are doing on their behalf.
   

How to vanquish it: Firms should prohibit block billing and adopt general standards for fee narratives, as well as tracking any client- or matter-specific narrative requirements. Take advantage of any tools available in your software to reduce the time it takes to enter and revise narratives.

In Tabs3 Billing, you can set up macros to spell out common terms or phrases, so you can enter a fee with fewer keystrokes. And by handling pre-billing electronically, you can avoid mistakes caused by misinterpretation of handwritten narratives. 

4. Leaving costs unbilled

Why it is scary: Too many firms absorb costs that should be billed to the client or integrated into rates. This cuts into profitability, especially in times where costs are rising. Costs include advanced costs like deposition costs, travel, medical records, and filing fees, as well as overhead expenses like making copies and legal research tool fees.  

How to vanquish it: The way you approach this problem depends on your practice, your clients, and most importantly on your fee agreements. Options to consider include: 

• Billing for every cost including the portion of overhead expenses. This approach requires careful recordkeeping, so it can increase timekeeper and accounting workloads. Some clients may perceive it as “nickel-and-diming.” Others expect itemized costs.  

• Charging a flat monthly file maintenance fee. (Larger advanced costs would need to be billed separately.) This method might reduce recordkeeping burden, and some clients may appreciate knowing what the costs would be. Other clients may be sensitive to paying a set amount even in a month when costs are comparatively low. 

• Including overhead costs in rates and billing for larger advanced costs. This works for hourly or flat rates, may reduce recordkeeping burden somewhat, and does not create a line item on the bill. It is still important, however, to track overhead costs so you can account for them when setting and reviewing rates.
   

Tabs3 Billing lets you decide how to handle cost recovery. You can include it in the bill, add a monthly fee, or simply track costs for internal firm use. The platform includes a suite of reports that can help you understand how costs impact profitability so you can set appropriate rates. 

5. Missing or duplicated items

Why it is scary: Accidentally billing the same fee or cost twice, or billing fees/costs that look the same, can erode client trust in your firm. Failing to bill fees or costs timely may force you to “catch up” with a bill that is larger than a client expects. If clients complain, you may be under pressure to write down or write off bills that you would otherwise have been able to collect in full. 

How to vanquish it: To avoid duplicated or similar charges, review your statement approval process and your firm policies about fee and cost entry narratives. Narratives should allow the client to distinguish between entries. You can catch missing or misattributed time and costs by reviewing reports regularly.  

You can do both things with Tabs3 Billing. For example, you can lock down all time entries included on a draft statement to make sure no unexpected changes are made before the bill is issued. Flexible reports make it simple to generate and deliver reports, including aging WIP, at the timekeeper, practice, and firm level.

👉 Want to learn more about Tabs3 Cloud? Schedule a demo today!

 6. All-paper billing process

Why it is scary: Too many firms still handle pre-billing on paper. Paper-based processes limit where and when approvers can work, and they reduce visibility into the status of approvals.  

Handwritten statement revisions create additional problems. The billing function wastes time puzzling out handwriting and re-entering data, while the timekeeper worries about being misinterpreted. 

How to vanquish it: Shift to paperless pre-billing. With modern software, approvers can review pre-bills on desktop, laptop, or mobile devices, directly revising errors and making notes for billing clerks. The billing clerk can quickly finalize and send the bill, speeding up your cash flow. 

Tabs3 Billing users can choose between paper-based pre-billing and electronic pre-bills. The electronic process is flexible, so you can find the approach that is best for your firm. 

7. Limited bill delivery options

Why it is scary: Many clients prefer to receive invoices via email. Firms that do not offer a digital option may be wasting time, paper, and postage, in addition to client goodwill. 

You may also be slowing down your revenue cycle. Consider the time it takes to open a letter, read an invoice, track down the checkbook, write a check, find a stamp, and put the payment in the mail, versus opening an email with an electronic payment link. 

How to vanquish it: Most firms can benefit from offering email invoices as an option, and you may discover digital should be the default for your client base. Make sure to include electronic payment options so clients can opt to pay faster. 

Tabs3 Billing makes emailing invoices simple and comes with a growing suite of electronic payment options for clients who choose digital payments.  

👉 Paperless Invoicing: A How to Guide for Busy Law Firms

Tabs3 Cloud: Turn tricky billing into a monthly treat 

Halloween levity aside, you can make your billing process easier and more effective with all the Tabs3 Billing features found in Tabs3 Cloud. It includes powerful financial management tools:   

• Invoice and collect payments faster 

• Accept electronic payments securely 

• Manage your trust account, accounts payable, and general ledger  

• Access Tabs3 from your desktop, laptop, tablet, or smartphone
   

Next month, we will talk about how to improve your collections so you can keep the revenue cycle spinning.

Ready to learn more? Demo Tabs3 Cloud today.  

Your IP law firm is poised to grow or striving to get ahead. The technology you choose can give you a leg up, but not every tool is well-suited for an IP practice’s needs. Learn how the right legal practice management platform could propel you forward.

👉 Want to learn more about Tabs3 Cloud? Schedule a demo today!

What is practice management software?

General business management software works for some businesses. But law firms have unique needs, and meeting those needs requires a specialized legal practice management platform. These products typically include:

• Workflow and task management
• Docketing/calendaring
• Conflict checking and contact management
• Client relationship management (CRM)
• Reports, analytics, and dashboards
• Time entry and cost tracking
• Billing and payment processing
• Trust accounting, bookkeeping, and accounts payable

IP law firms need more from practice management platforms

Most law firms need the features listed above. But IP firms need augmented capacity in a few areas:

• Advanced docket management to handle high-volume deadline tracking
• Robust matter management to ensure coverage and map intricate data relationships
• Workflow and document support to speed up extensive documentation requirements
• Financial tools for alternative fee arrangements and complex payment attribution

Tabs3 Cloud has the tools your IP law firm needs to scale. You get powerful financial tools and can add on PracticeMaster to help you work faster and more accurately.

Never miss a deadline

Your firm’s growth is hampered when due dates are stuck in multiple tools. Teams may have little visibility into the firm’s work as a whole, and it can be difficult to match due dates with client files. The sheer volume of deadlines and filings in IP practices creates extra urgency around this issue; even a single missed step could result in permanent loss of a client’s rights.

The right legal practice management platform can make a big difference. PracticeMaster in Tabs3 Cloud helps supervisors track deadlines across the entire firm. Depending on the access rules you choose, users can see deadlines for a single matter, all of a timekeeper’s matters, or all of a group’s matters. Each deadline is associated with the relevant matter, so nothing gets lost.

The docketing feature also integrates with Microsoft Outlook, including real-time synchronization when you make changes in either place.

Keep everyone up to date

Disconnected data storage causes problems beyond lost due dates. When contacts are siloed, it is challenging to conduct accurate conflict checks and ensure client notifications are handled correctly. Paper-based client files make it difficult to keep everyone up to date on each matter, so time is wasted tracking down information.

Tabs3 Cloud with PracticeMaster allows your firm to centralize all matter management activities. Documents, emails, contacts, and all other matter information is available in digital format, so any updates are immediately available to all authorized users. You can access case files securely from desktop, laptop, tablet, or smartphone.

In addition, leadership teams can use the reporting function to track trends and patterns, which can reveal opportunities for workflow efficiencies and profitability levers. A legal CRM and secure document sharing/eSignature are also available.

👉 Check out The Midsize Law Firm Survival Guide for more information about how Tabs3 can benefit your firm

Standardize and speed up work

To meet your deadlines, you have to draft client correspondence, filings, and other documents. Each attorney may use a slightly different model for each document type, and you may be re-keying data in every draft. Especially when you are assembling complex or lengthy documents, the opportunities for mistakes compound.

PracticeMaster in Tabs3 Cloud helps you create shared templates for frequently-used documents to ensure that firm policies are uniformly applied. Templates also reduce drafting time and errors, because matter information can be automatically pulled into the document. You can even set up automation to generate a whole set of documents in fewer steps.

Keep the revenue cycle moving forward

More and more law firms are using alternative fee arrangements, but manually managing billing for complex fee agreements can take time. If you have large clients with multiple matters, payment attribution can quickly become a major chore. And regardless of fee arrangements or client size, time entry is a perennial issue.

Tabs3 Cloud comes with robust, flexible financial tools. Efficient time entry from any device enables on-time billing. The platform can handle virtually any fee arrangement, and you only need to set up each client’s fee rules once. Splitting payments between multiple matters is simple. You can do trust accounting, general ledger, and accounts payable from Tabs3 Cloud. Finally, you get access to an extensive suite of financial reports and analytics.

👉 Schedule a demo to see Tabs3 in action!

Scale your IP firm with Tabs3 Cloud

Tabs3 Cloud has the core functions and extra features, like PracticeMaster, that IP firms need to grow. It can make your daily work simpler and more efficient while revealing insights that can guide your trajectory. Demo Tabs3 Cloud today.

With Q4 just around the corner, law firms are poised to dive into budgeting and planning work. Tabs3 Billing Reports empower you to make smart, data-driven decisions for a more prosperous 2026. There are benefits for stakeholders throughout the firm:

• Firm leadership can see how the current strategy is playing out.
• Accounting staff can spot areas for collections and trust compliance improvement.
• Partners can find collections problems early enough to boost compensation.

You get flexible, powerful reports right out of the box when you choose Tabs3 Billing, part of Tabs3 Cloud.

👉 Want to learn more about Tabs3 Cloud? Schedule a demo today!

Understand time and billing trends

Most firms monitor time and billing data monthly. In Q4, you can assess year-to-date data and look for broader implications.

How are individual timekeepers performing overall?

This question is especially relevant in Q4 if your firm has annual performance goals and/or determines bonuses based on timekeeper productivity. The earlier you check the reports, the more time you will have to course-correct before year-end. You can use these reports to inform strategic planning for 2026, too. For example, you can see what matters each timekeeper spends the most time on. You might also study performance by task code to identify work that could be done more efficiently.

Reports to consider:

• Allocated Payments Report
• Client Realization Report
• Detailed AR Report (Platinum users can sort by timekeeper)
• Productivity Report by Category for Each Timekeeper
• Productivity Report by Tcode for Each Timekeeper
• Timekeeper Analysis Report
• Timekeeper Status Report
• Write-Up/Write-Down Report
• Write-Off Report

How much work time do timekeepers spend on billables vs. non-billables?

To maximize billables, you need to understand where the time is going. With these reports, you can drill down on individual timekeepers, clients, and practice areas to find places to improve.

Reports to consider:

• Client Analysis Report
• Client Productivity Report
• Recap of Hours Report
• Timekeeper Productivity Report
• Transaction File List
• Task Code Billing Report

Which of our practice areas are the largest, and how profitable are they?

By looking at these numbers, the firm can make better decisions about how to allocate resources and where to seek new business. There is a report for this specific purpose (Category Productivity Report), and you may find reports that sort by client useful if each client is a meaningful proxy for a practice area. For example, if your small business clients only engage you for commercial leasing, client-based reports could be helpful.

Reports to consider:

• Category Productivity Report
• Client Productivity Report
• Client Realization Report
• Top Client Report

What unbilled work has been “lost” and could be invoiced this year?

Both individual partners and firm leadership have an interest in identifying revenue problems. Individual partner compensation may be based on revenue brought in, and the firm itself needs to keep cash flowing. Early in Q4 is a good time to search out “lost” time if you do not already have a system in place.

Reports to consider:

• Aged Work-In-Process Report
• Client Budget Report
• Client Productivity Report
• Detail Work-In-Process Report
• Summary Work-In-Process Report
• Task Code Budget Report
• Timekeeper Status Report

See how invoices turn into revenue (or not)

Your firm can only realize time and billing improvements if invoices are paid. Now is the time to assess your accounts receivable process and plan for improved collections in 2026.

What could still be collected/allocated this year?

The Q4 collections push is proverbial. Finding and applying unallocated payments can also boost your revenue. You can use reports to look at firm progress overall, as well as studying individual timekeeper collections results so you know where to focus collections efforts.

Reports to consider:

• Accounts Receivable by Invoice
• Accounts Receivable by Timekeeper (Tabs3 Cloud and Platinum Edition only)
• Client Funds report
• Collections Report
• Detail Accounts Receivable
• Pre-Bill Tracking Report
• Recap of Hours Report
• Summary Accounts Receivable
• Timekeeper Realization Report
• Timekeeper Status Report
• Unallocated Payments Report

Where are we collecting efficiently (or not)?

Examining your 2025 collections trends can help you spot areas for improvement in 2026. For example, you might ask which timekeepers are most efficient in collections to help you determine what factors drive their success. You can also assess collections by client to aid decisions about ongoing representation and/or client management adjustments.

Reports to consider:

• Client Realization Report
• Collections Report
• Receipt Allocation Report
• Timekeeper Analysis
• Timekeeper Productivity Report
• Top Client Report

How much are we collecting in fees versus other categories?

It may be useful to understand how revenue breaks out across multiple categories. For example, excessive finance charges could indicate a problem upstream in the collections workflow. Tracking the growth of fees, as well as costs, can offer insight into overhead trends and business growth.

Reports to consider:

• Client Realization Report
• Receipt Allocation Report

👉 Check out The Midsize Law Firm Survival Guide for more information about how Tabs3 can benefit your firm

Track invoice adjustment patterns

Analyzing statement adjustment practices can reveal opportunities for improvement, too. You can use reports to track write-ups, write-downs, courtesy discounts, and write-offs.

Is courtesy discounting negatively impacting the firm’s revenue?

Offering a timely discount is an important client management and collections tool. It is difficult, however, for individual decision makers to spot problematic trends in the moment. In Q4, there is ample year-to-date data available and time to change practices for next year. You may also think through how discounting should impact next year’s rates.

Reports to consider:

• Client Analysis Report
• Client Rate Report (to see current timekeeper rates)
• Receipt Allocation Report

Are attorneys writing down time (or writing up time) excessively?

Actively controlling write-downs (and write-offs) is key to long-term profitability. Excessive write-downs can not only reduce profits, but also point to performance problems and/or client management problems. A rise in write-ups could indicate problems with timekeeping. To keep bill adjustments under control, keep your eye on the big picture.

Reports to consider:

• Client Analysis Report
• Client Productivity Report
• Collections Report
• Timekeeper Productivity Report
• Write-Up/Write-Down Report

Finally, be on the lookout for “silent write-downs,” where attorneys do not enter time. Often, there is an appropriate reason (like correcting a junior’s work), but big shifts in time billed could point to timekeeping problems.

Is the firm writing off debt excessively?

Write-downs and write-offs are distinct in terms of accounting procedures and tax implications. Too many write-offs can trigger accounting and/or tax concerns, so write-offs and write-downs should be tracked and assessed separately.

Reports to consider:

• Client Analysis Report
• Client Productivity Report
• Collections Report
• Timekeeper Productivity Report
• Top Client Report
• Write Off Report

👉 Schedule a demo to see Tabs3 in action!

Stay in-the-know on other success indicators

Should we raise our rates and/or flat fees?

Rate increases are often announced at the beginning of the calendar year, so Q4 is the right time to assess whether your current rates are aligned with your goals. You can evaluate trends throughout the past year to inform your predictions about the 2026 market.

Reports to consider:

• Client Budget Report
• Client Productivity Report
• Client Rate Report
• Client Realization Report
• Fee Compensation Rules
• Top Client Report

Is task-based billing going smoothly?

If your firm uses task-based billing, checking relevant reports annually can help you spot any issues that might be missed in day-to-day billing management.

Reports to consider:

• Task Code Billing Report
• Task Code Budget Report

Client reports for task-based billing clients can also be a helpful source of information.

Are we in compliance with our trust accounting obligations?

The reports listed below are in addition to normal accounting reports, required recordkeeping, and regular three-way reconciliations.

Reports to consider:

• Client Funds Report
• Collections Report

The reports you need right now, right out of the box

Tabs3 Billing comes with all the reports you need to prepare for a more prosperous 2026. Our extensive knowledge base includes a helpful Report Finder and a comprehensive guide to each and every report. Demo Tabs3 Billing in Tabs3 Cloud today.

Lawyers and other legal professionals know that law firms are tempting targets for cybercriminals. You probably know a friend of a friend who accidentally sent confidential information to opposing counsel. Even so, it is common at many law firms to send sensitive client information via email. In doing so, you may risk ethical complaints, data breach liability, and reputational damage.

At the same time, changing your workflow is challenging, especially when your caseload is growing and staffing is shrinking. LexShare offers an alternative. It combines strong security with products you already use and trust.

👉 Check out the PracticeMaster Integration page to learn more about LexShare

Wait.. why not just add a privilege/confidentiality disclaimer and use regular email?

Tacking on a disclaimer as an email liability shield approach is fast, easy, and familiar, but it might not be secure enough.

Current ABA guidance* recommends a fact-based analysis

In 1999, Formal Opinion 99-413 (1999) stated that lawyers have a reasonable expectation of privacy in standard email. Formal Opinion 477R (2017) changed that guidance.

The 2017 opinion referenced Comment 18 to Model Rule 1.6(c), which states that “factors to be considered in determining the reasonableness of the lawyer’s efforts [to safeguard confidential information when sending information electronically]” include, but are not limited to:

• the sensitivity of the information,
• the likelihood of disclosure if additional safeguards are not employed,
• the cost of employing additional safeguards,
• the difficulty of implementing the safeguards, and
• the extent to which the safeguards adversely affect the lawyer’s ability to represent clients (e.g., by making a device or important piece of software excessively difficult to use).

It also noted that the duty of competence requires attorneys to understand the risks and benefits associated with changing technology (see Model Rule 1.1, Comment 8).

The ABA concluded that sharing client information over the internet is acceptable if the attorney makes “reasonable efforts to prevent inadvertent or unauthorized access,” unless the client requests more security or the fact-specific analysis indicates higher security is required.

*ABA guidance is advisory. Check with your state bar association for local rules.

“Reasonable efforts” require ongoing evaluation of risks and protections

In the eight years since Opinion 477R was published, the list of security risks law firms face has only grown. The tools available to protect communications have changed, too.

Opinion 477R acknowledged the evolving nature of technology. It cited the ABA’s 2016 Ethics 20/20 Commission Report, which declined to recommend specific safety measures, saying that that “technology is changing too rapidly to offer such guidance and … the particular measures lawyers should use will necessarily change as technology evolves and as new risks emerge and new security procedures become available.”

Reputational damage is an independent risk

Clients rely on their attorneys to safeguard their information, and when that trust is breached, the firm can be damaged even if no ethical rules were violated. An email disclaimer will not stop a hacker. When emails are misdirected, it is not always possible to un-ring the bell. Reputational damage can be especially devastating for firms that rely heavily on referrals.

LexShare offers better security without sacrificing ease of use

Lawyers are understandably reluctant to add new technology to their workflows, even when they want the benefits it provides. It takes time to learn a new process. Some tools add too many extra steps, cutting into your already-limited work time. Or they are difficult for clients to use, so your phone is ringing with support requests.

LexShare makes secure sharing easy on you and your clients. You can send or request a document from PracticeMaster with a few clicks:

• You choose the appropriate level of security based on the situation
• You can write the body of the email right in the workflow or get a secure link and add it to your email manually
• You can set up a notification to alert you when the document is accessed or sent

If you choose to add eSignature capability, the process for getting an eSignature is similar.

On your client’s end, the message looks like a normal email; they just click on the link to get the secure document. If you decide to add extra security, the client must answer a challenge question before viewing the document.

Use case: Sending sensitive information to a client

Imagine that you need to share confidential, written information about your client’s matter, and time is limited.

Your perspective: Instead of sending a letter or making an appointment, you decide to send an email and attach the confidential information. Since the information is sensitive, you use LexShare to send a secure link with a pre-arranged challenge question. You complete the entire process inside PracticeMaster in just a few minutes.

The client’s perspective: Your client receives the email in their regular email inbox. They answer the challenge question accurately and read the information on your secure portal.

By emailing a secure link instead of meeting or mailing a letter, you:

• Get the information to the client quickly so you do not lose momentum on the matter.
• Avoid an extra appointment in your calendar.
• Save on paper and postage.
• Keep sensitive data out of email inboxes and limit the risk of unauthorized access to confidential information.

👉 Check out our LexShare video to learn more about this process

Use Case: Receiving confidential documents from a client

In this scenario, you completed the initial consultation virtually and need additional documentation from the client to decide on next steps, including screenshots of texts from the client’s phone.

Your perspective: This particular information is very sensitive, so you use LexShare to send the client a single-use link that allows them to upload the screenshots or files to your secure portal. You complete the entire process inside PracticeMaster with just a few clicks.

The client’s perspective: The client opens the email on their phone or computer, clicks the link, and uploads the necessary files.

By emailing a secure link for the client to upload, you:

• Get a faster response, because the client can complete the task from their mobile device, so you can take the next step in the matter right away.
• Import the screenshots or files directly into PracticeMaster.
• Keep sensitive data out of email inboxes and limit the risk of unauthorized access to confidential information.

See the document sharing process (starts at 2:31).

Use case: Signing a retainer agreement

After reviewing the client’s documentation, you decide to accept the matter. Now you need to get a signed retainer agreement.

Your perspective: The retainer agreement is sensitive, and your client wants to get moving on the matter right away. You decide to use LexShare to request an eSignature on the document. You go into PracticeMaster, select the document, and click “Request eSignature.” You complete the eSignature request process quickly and efficiently.

Your client’s perspective: The client clicks the link, answers the challenge question, and reads the document. Then they sign the document in a few clicks.

Watch the eSignature process from your perspective and your client’s perspective.

By using the eSignature process, you:

• Secure representation fast so the client does not move on to another firm.
• Meet the client’s expectations for speed.
• Save on paper and postage.
• Keep sensitive data out of email inboxes and limit the risk of unauthorized access to confidential information.

👉 Schedule a demo to learn more about how Tabs3 can benefit your firm

Protect your clients, your good name, and your time

LexShare’s plug-and-play integration with PracticeMaster means you can start sending securely right away. Your clients will also welcome a simpler process for sharing and signing. Demo PracticeMaster with LexShare on Tabs3 Cloud today!

The stakes are high: trust account mismanagement is “one of the most frequent causes of [attorney] disciplinary action.” The compliance requirements are voluminous (and sometimes esoteric). With thoughtful planning and attention to detail, however, you can stay compliant.

Note: This article covers general trust accounting principles. The specific rules that apply to your trust accounts may be different, because trust accounting rules are set by states. Make sure to check your state’s rules and consult with ethics counsel as needed.

👉 Paperless Invoicing: A How to Guide for Busy Law Firms

What is trust accounting?

The guiding principle of trust accounting is simple: Attorneys (and their staff) have a special duty to safeguard their clients’ money because attorneys are fiduciaries for their clients. As fiduciaries, attorneys must act in their clients’ best financial interest. That includes:

• Maintaining separate accounts for clients’ money (the trust account) and the firm’s money (the operational account).
• Making sure that the firm’s money is never commingled with clients’ money.
• Ensuring prompt notification/disbursement when the firm receives money for the client.
• Keeping detailed records of all transactions that involve client money.
• Reconciling trust accounts frequently to detect and correct errors.

The trust account holds clients’ money, like:

• Retainers and advanced fees.
• Escrow deposits for real estate transactions.
• Settlement funds and money awards.
• Other funds received on the client’s behalf.

If an attorney mismanages the trust account, even by accident, the consequences may be serious. Clients might lose trust in the firm. The firm might be liable for damages. Attorneys could face disciplinary action (public reprimand, fines, suspension, and disbarment).

Is a trust account the same as an IOLTA account?

Sometimes people refer to trust accounts as IOLTA (Interest on Lawyer Trust Account) accounts. Not every trust account is an IOLTA account. The type of trust account depends on the interest-earning potential of the client money held.

If the client would earn a minimal amount of interest (because the amount of money is small or it will not be held for long), it is pooled with other client funds in an IOLTA account. The combined funds earn interest, which is used to support legal aid and access to justice.

Larger amounts, or amounts held for a long time, are held in regular interest-bearing accounts (not IOLTA). The interest belongs to the client.

What are the most common trust accounting errors?

The rules for trust accounting are not always intuitive, and it is easy to make mistakes. Common errors include:

• Commingling client and firm funds
• Reconciling the trust account incorrectly or not frequently enough.
• Not tracking all the required information for each transaction

6 principles for getting trust account right

Store client funds separately

This principle is simple, but it can be difficult to apply. Commingling examples include (but are not limited to):

• Using client funds to pay law firm expenses. Never pay firm expenses from the trust account, even if the money has been earned. Move it to the operating account first.
• Moving client money to the operating account before it has been earned. In most cases, retainer funds must be stored in the trust account until they are earned.
• Failing to move earned fees to the operating account regularly. This may seem counter-intuitive, but it is an example of storing the firm’s money in the trust account.
• Handling fixed fees improperly. There is significant variation among states on this issue. Some consider fixed fees to be earned upon receipt; others require lawyers to keep fixed fees in trust until earned.

Most states make an exception to the commingling prohibition for banking fees. In general, law firms may deposit their own funds in the trust account to pay for normal banking fees. Keeping a significant amount of firm funds in the trust account, however, may be a violation.

Keep thorough records

Trust accounting requires especially meticulous recordkeeping. The ABA Model Rules on Client Trust Account Records, Rule 1, provides a good overview of what is typically required:

• A journal of deposits and withdrawals from trust accounts
• A ledger for each client trust account
• Copies of retainer and compensation agreements
• Copies of any accountings to clients or third parties
• Copies of bills for legal fees and expenses
• Copies of records showing disbursements on behalf of clients
• Financial institution records like checkbook registers, bank statements, deposit records, cancelled checks, and substitute checks
• Detailed records of electronic transfers
• Copies of trial balances and reconciliations
• Copies of the parts of the client file that relate to trust accounting.

Note that ABA rules are advisory only in most cases, so you should refer to state law.

Communicate clearly

Keeping the client informed about their funds is part of the attorney’s fiduciary duty. It is also a good way to head off client misunderstandings that eat up your time and lead to disputes. Examples trust account communication include:

• The engagement letter or fee agreement, which should clearly state how money will move through the trust account.
• Statements, which should be sent regularly and should include a summary of the client’s trust account ledger. It is a best practice to send a statement whenever you pay earned fees from the trust account, even if no additional money is owed.
• Notifying the client when the attorney receives funds on their behalf. The funds must also be disbursed to the client within a reasonable period of time to avoid commingling.

Reconcile correctly and on time

Trust accounting requires three-way reconciliation. You must compare the bank statement against your trust ledger (two-way reconciliation) and also against each client’s trust ledger. All funds, down to the penny, must be accounted for.

Three-way reconciliations should be done on a regular schedule and frequently enough to catch errors promptly. Trust errors tend to snowball, so finding them early benefits everyone.

Many firms find it works best to reconcile monthly right before billing statement creation.

Write down procedures

Even if your accounting team is small, written procedures are essential for staying on track. Procedures should cover trust accounting workflows, checks and balances, and encourage prompt reporting of problems so any errors can be corrected swiftly. Procedures should be reviewed and updated regularly.

Know your state’s rules

It bears repeating—general trust accounting knowledge is necessary but not sufficient for trust account compliance. Stay up to date on your state’s rules and take advantage of local CLE resources.

👉 Set up a personalized demonstration with our experienced trainers today.

Tabs3 helps you get trust accounting right

Trust accounting is complicated. Tabs3 Financials can lighten your load.

• Instant communication with your bank, easy-to-read trust ledgers, and streamlined three-way reconciliation reports so you can reconcile faster.
• Flexible recordkeeping so you can store all the details needed for compliance.
• Dashboard summaries to help you spot trust problems early.
• Seamless integration with Tabs3 Billing and Tabs3Pay, an electronic payment solution built for lawyer trust account compliance.

Tabs3 Financials is also available through Tabs3Cloud, giving you more control over where and when you work. Schedule your free demo today.

👉 Paperless Invoicing: Why Your Law Firm Should Embrace the Digital Age

A professional law firm website is one of the most effective tools to attract new clients. With virtually unlimited reach as thousands of clients search online for law firms nearby, your website is the best way to instantly showcase your expertise and make a powerful first impression that ends in a signed contract.

More website visitors become clients when six key features are built into your website’s framework. From maximizing your search engine visibility to demonstrating clear social proof with reviews and testimonials, law firm websites with the following elements can help you enhance your site’s performance, increase conversions, and build a stronger client pipeline for long-term firm growth.

👉 Looking for a low-stress website solution? Watch 5 Reasons Law Firms Need Tabs3 Websites now to uncover what makes a turnkey website a competitive advantage for firms of all sizes.

The Benefits of a Professional Legal Website

Too many law firms see their website as a static digital business card. In truth, your website should be a dynamic part of your marketing strategy that is able to consistently attract, capture, and convert clients.

A well-executed law firm website can deliver numerous benefits. With the right site features guiding leads and prospects through the client journey, your firm can expect:

• Enhanced visibility and reach to help ideal clients find your firm and take the next step.
• More consultation requests with clear calls to action (CTAs) driving form fills and calls.
• Free organic traffic and leads from higher positioning in local law firm search results.
• Stronger credibility and trust through professional design and social proof elements.
• Simple, effective marketing that automatically attracts and captures qualified leads.
• Higher conversion rates by optimizing the user experience with clear guidance.
• A powerful first impression that showcases your firm’s services and expertise from the first click.

When 96% of legal clients begin their lawyer search online and 74% of searches end with a phone call, a strong website designed to increase online visibility is a key driver of client acquisition. Simple, optimized features can elevate basic law firm websites to high-performance engines that generate steady growth.

👉 Top-performing legal websites feature specific elements that drive results. Download Essential Elements of a Successful Law Firm Website now to learn what your website needs to reach its full potential.

6 High-Converting Law Firm Website Features That Win Clients

Like any marketing tool, law firm websites should be optimized and improved over time to enhance their lead generation capabilities. Ensuring key features and high-impact site elements are in place can strengthen your digital marketing strategy and enable your firm to drive more consultations, conversions, and long-term growth.

1. Client-Centric Features That Attract and Capture Leads

If your website is filled with legal jargon and focuses more on your credentials than your clients’ needs, it won’t appeal to prospective clients. Your website content should address the real-world challenges and legal questions your clients face on a daily basis. Visitors need to know you understand their situation and have the expertise to guide them before they submit a form or call your firm.

Today’s clients expect more than just information. They want the ability to take action: pay invoices online, check the status of their case, and securely communicate with their attorney. Your firm can support these expectations with seamless integrations with billing and CRM tools for client convenience.

• Post client-focused content that addresses common pain points and legal questions.
• Show visitors you understand their challenges and how you solve their problems.
• Use clear, consistent messaging and pair it with relevant visuals to engage and build trust.
• Offer practical features like online payments, client communication tools, and case updates to turn visitors into clients.

Focus on the outcomes your clients care about, speak their language, and ensure your website delivers more than information to provide real value for clients.

2. Fast, Mobile-Friendly Experience

A website that takes too long to load or fails to display properly on mobile devices is off-putting and challenging for users. As your firm’s digital first impression, your website should be optimized for speed and feature adaptable, mobile-first design.

When over 60% of searches happen on mobile devices and 40% of users leave sites that take more than 3 seconds to load, the importance of a fast-loading website that instantly adapts to fit mobile screens can’t be overstated.

• Conduct website and page load speed tests to understand where improvements are needed.
• Compress images and choose fast hosting to reduce loading time and bounce rates.
• Ensure navigation menus, buttons, and content display properly on various screen sizes.

Take the user experience a step further by ensuring your site is accessible for all users, including those with disabilities. Prioritize a clean, easily navigable design and straightforward information access.

3. Local Search Engine Optimization (SEO)

It’s incredibly difficult to rank in search results for broad, high-competition terms like “family lawyer,” and users searching for terms like those could be located anywhere in the United States. Instead, successful law firm websites use low-competition, location-based keywords to reach the clients searching for attorneys nearby.

Firms that prioritize local SEO are able to connect with high-intent prospective clients using search terms like “personal injury lawyer near me” or “Boca Raton divorce attorney.” Preparing your website with the right keywords and settings will enable you to reach these users early in their attorney search and generate more qualified leads in your area.

• Develop a strong local SEO strategy targeting your geographic area and relevant keywords.
• Identify the neighborhoods and regions you serve and local legal issues people search for.
• Claim and verify your Google Business Profile and other directories to enhance local visibility.
• Target local leads with Tabs3 Google Ads services to increase clicks, calls, and clients with proven ad strategies that position you at the top of local search results.

Potential clients often click the firm they see first in search results. Implementing a strong local search optimization strategy is a powerful way to increase site traffic from high-intent leads who are ready to convert.

4. Clear and Current Contact Information

Is it hard for leads to get in touch with your firm? If visitors can’t easily find your phone number, email, or office location, it’s harder for prospects to reach out. Easily accessible contact information is essential, yet many law firm websites bury details or complicate the process

5. Highlight Client Testimonials and Social Proof

Credibility markers and social proof help law firms win clients. Without testimonials, case results, or reviews displayed prominently on your website, potential clients have little reason to trust you over competitors. Studies show 80% of legal clients seek out online reviews and testimonials before hiring a lawyer. These elements build your reputation and differentiate your firm when leads visit your site.

• Showcase testimonials, reviews, awards, and case studies throughout your website to build trust and demonstrate results.
• Use specialized tools like Feedback Automatic to display positive reviews on your website and keep negative comments internal.
• Create dedicated landing pages for each practice area with relevant testimonials and results to show qualified leads how you can assist with their specific legal needs.

Ensure testimonials feel authentic and specific. Feedback that goes beyond generic praise is most effective. For example, “John helped me get my life back after my accident” resonates with similar clients. Highlight your firm’s success and team expertise with concrete examples to build trust and approachability.

6. Built-In Engagement Tools

High-converting legal websites do more than inform; they engage and prompt users to explore further or take the next step. Many firm websites function as static brochures rather than dynamic lead generation and client relationship tools. Implementing the right features can help you engage visitors consistently to drive more conversions.

• Follow up on form submissions quickly and create multiple touchpoints before clients decide.
• Create a sales funnel to guide visitors to book a free consultation. Consider offering free tools or guides to build trust and nurture leads with email drip campaigns.
• Measure your website and marketing ROI data to ensure strategies deliver increasing value.

As your firm grows, evolve engagement strategies to handle more leads and client needs. Use your website to start conversations, not just display credentials. Embrace content marketing with helpful resources that build expertise and value.

👉 Want to see how easy it is to launch a high-converting website that works as hard as you do? Schedule a demo to explore Tabs3 Websites now.

An Easier Path to a High-Performance Law Firm Website

The six features above are essential building blocks of a law firm website that attracts and converts new clients. Miss even one and you could risk losing leads, weakening your first impression. Solve your prospecting and client service needs with a site developed by specialists in the legal industry: Tabs3 Websites.

Sites from Tabs3 Websites are backed by years of legal marketing expertise and designed to help your firm look sharper, move faster, and grow smarter. Give clients what they expect from a modern firm: the ability to pay online, get in touch easily, and track their case status securely. From lead capture to payment processing, it’s all built in.

When you launch your new website, you get everything you need to succeed online:

• Professional, modern design
• 10 customizable webpages
• Built-in legal SEO content and FAQs
• Industry-leading security and compliance features
• Done-for-you design, support, and maintenance
• Seamless integration with Tabs3Pay and Tabs3 CRM
• Add-ons like client reviews and Google Ads services

Tabs3 Websites are fast, secure, and purpose-built for the legal industry. Ready to launch a website that reflects the professionalism of your practice? Schedule a demo today and discover your shortcut to a stronger online presence.

👉 Want to see how easy it is to launch a high-converting website that works as hard as you do? Schedule a demo to explore Tabs3 Websites now.

We know that invoicing keeps the lights on. For many small and midsize firms, however, the billing cycle eats up too much attorney time and stretches administrative teams too thin. Going paperless, with the right technology and workflows, can bring billing back into balance.

Tabs3 products are built for law firms like yours. When using Tabs3 Billing, Tabs3 Financials, Tabs3Pay and Tabs3 Cloud, you can reduce or eliminate paper while reducing workload for attorneys and professional staff.

👉 Paperless Invoicing: A How to Guide for Busy Law Firms

What is paperless billing?

Paperless billing means leveraging electronic recordkeeping and automation to reduce or eliminate paper-based work. Going paperless is good for the planet, your pocketbook, and your workload.

Paper-free processes can speed up time entry, eliminate duplicative work, reduce the chance of statement errors, and streamline collections. You can also reduce the paper needed for trust account compliance and general accounting tasks.

The following sections describe the five steps of a paperless billing cycle.

Step 1: Generate draft statements electronically

Attorneys in firms without modern billing software tend to get stuck doing time entry via hard-to-use programs, spreadsheets, or handwritten notes. Billing clerks translate the time entries to draft statements via manual data entry.

The process creates problems. Generating draft statements takes too long, which ripples out across the firm, because billing clerks are less available for other support tasks. It is easy to misread a time entry or introduce a typo. Fixing errors costs billing clerk time (if the error is caught early) or attorney time (if the client finds the error). Delays compound; they slow the whole firm down and add unnecessary friction to everyone’s work.

The solution is an integrated, paper-free timekeeping and billing solution like Tabs3 Billing:

• Attorneys enter their time digitally via an interface built for their unique needs.
• On the back end, the billing clerk efficiently extracts the time entries.
• The software automatically translates the time entries into a draft statement. You can set up multiple templates in advance so no manual data entry is needed, even if you create statements in many different formats.

Step 2: Manage pre-billing digitally

The traditional statement approval, or pre-billing, process wastes time and paper too. The billing clerk prints draft statements, and stacks of paper are circulated among approving attorneys. Corrections are typically made by hand, introducing interpretation errors when the billing clerk types them in. There is also no central tracking of where each prebill is in the approval process.

Electronic pre-billing solves those problems while eliminating paper. With Tabs3 Billing:

• The billing clerk hands off the draft statement to the attorney by changing the statement’s status in the software. The approval process is tracked automatically, so authorized users can instantly see its status.
• The reviewing attorney gets a notification and opens a digital preview of the statement. They can type corrections or comments directly into the software. Then they mark the statement as reviewed.
• The billing clerk goes into the digital draft statement, resolves any outstanding issues, and finalizes it according to your firm’s procedures.

Step 3: Send paperless statements

Paper statements introduce costs and delays: postage, envelopes, printing, paper, and a process that cannot be fully automated. Even if you are unable to fully eliminate paper statements, you will likely find that some clients prefer electronic statements. Paper statements introduce costs and delays on their end as well.

Tabs3 Billing offers optional email statements, reducing paper and wasted time:

• Email statements consist of a short email with an attached statement in PDF format.
• You can create multiple templates for statement emails ahead of time. You have the option to personalize templates by inserting fields with a simple drag-and-drop interface.
• The fields pull in personalized information, like client name, balance due, and electronic payment links, and automatically insert it in the email’s subject line or body.
• When you set up email statements for a client, you choose an appropriate template.
• The billing clerk can send the approved statement with a single click. The software chooses the selected template, inserts the personalized information into the correct fields, generates a PDF statement, attaches the PDF, and sends the email.

Step 4: Collect payments electronically

In some practice areas, paper checks are the norm. Even in B2B transactions, however, electronic payment use is growing. Most consumers strongly prefer to pay electronically. Getting paid by check generates its own costs: on average receiving a paper check costs $1.01-$2.00, and check fraud is common.

Tabs3Pay integrates with Tabs3 Billing for faster, paper-free collections:

• You can include a live payment link in email statements.
• Clients can pay by ACH, debit card, credit card, PayPal, Venmo, or PayPal Pay Later. They never have to hunt for the checkbook or a stamp.
• The secure, PCI-compliant payment processor is built for law firms, so trust account compliance is baked in. Transactions automatically go into the correct account.
• Payments may be processed more quickly than paper checks.
• You may be able to manage the firm’s costs with surcharging. (Check state and local rules first, as they vary.)

👉 Set up a personalized demonstration with our experienced trainers today.

Step 5: Simplify compliance and recordkeeping

When your accounting processes are done on paper (or in a disconnected set of spreadsheets), it is easy to miss steps or get out of sync. Managing the recordkeeping burden of trust accounting without modern software increases the risk of errors, with the potential for serious business consequences. Paper-based three-way reconciliations are also time-consuming and error-prone.

Tabs3 Billing works with Tabs3 Financials to reduce paper and the risk of ethical breaches:

• Time entry, billing statements, accounts payable, and trust account management modules securely and automatically share the appropriate information.
• Your systems securely communicate with your financial institutions so you can keep a close eye on trust accounting.
• Three-way reconciliations are faster and more accurate with built-in reporting that automatically pulls in bank statements, your trust ledger, and each client’s individual trust ledger.
• By storing records electronically, you can reduce storage costs while making records more accessible to authorized users.

Cut out paper waste and wasted time with Tabs3

With Tabs3 Billing and Tabs3 Financials, available inTabs3 Cloud, you can create a virtually paper-free invoicing process. That works out to streamlined workflows, a faster revenue cycle, and happier clients. Schedule your free demo today.

👉 Paperless Invoicing: Why Your Law Firm Should Embrace the Digital Age

Even when your phone is ringing off the hook, the people calling might not be the leads you need. Finding the right match requires qualifying leads fast and following up promptly with qualified prospects. That can create a major administrative burden and cut into billable time.

Tabs3 CRM can help. By automating aspects of your client relationships, you can sign more of the right clients with less work.

👉 Learn more about the benefits of Tabs3 CRM

What is a CRM?

CRM stands for Client Relationship Management. A legal CRM can help your firm organize information, manage communication, and improve potential client relationships via centralized data storage and automation.

For example, a CRM might automate intake tasks like prescreening, consultation reminders, follow-ups, and engagement paperwork. CRMs can also boost intake collaboration within your office. They typically track all the contacts your office has with an individual, so anyone can see what has been done and which tasks remain.

Once a client has engaged your firm, a CRM that integrates with your practice management software can eliminate duplicative data entry.

CRMs help firms engage leads more efficiently

Managing relationships with leads begins the moment a potential client learns about your firm. The initial part of your intake workflow might look something like this:

Step 1: Be visible to potential clients

Many firms reach out to potential clients via multiple channels. For some, that means paid ads, like Google, Facebook, trade journals. For others, it might include bus benches and billboards. And no matter what your practice area is, a professional, engaging website is critical.

Tabs3 CRM can help you discover which channels are the most successful so you can iterate and improve your marketing. You can record lead sources or track them directly through an integration. For example, the software integrates with Tabs3 Websites, so website leads are automatically drawn into your intake workflow.

Step 2: Route inquiries appropriately

Whether you have dedicated intake staff or not, you need to get each lead to the right person at the right time. Tabs3 CRM can automatically route the leads to the right person, based on criteria you specify, or hold notifications when intake is unavailable. Routing inquiries correctly means fewer missed connections, so you can engage promising leads quickly.

Step 3: Pre-screen leads thoughtfully

A good pre-screening can save hours of wasted time. With Tabs3 CRM, you can create multiple digital intake forms for different types of cases or practice groups. Then you decide how to deploy them:

• Traditional phone screening, where you enter answers directly into the CRM. Screeners can initiate the call from Tabs3 CRM.
• Self-serve screening, where you send the lead a text or email with a link to the appropriate screening form. This allows you to make a preliminary representation decision before getting on the phone.

Nurture leads effectively

Leads that are qualified by pre-screening continue moving through the intake process. The latter part of an intake process typically includes these steps.

Step 1: Stay top of mind

Sometimes a qualified lead is not ready to move forward with their matter. But in a busy office, important follow-up tasks can fall through the cracks. With Tabs3 CRM automations, however, you can create set-it-and-forget-it follow-up sequences, like text reminders or a series of emails (a “drip campaign”).

Templates and an intuitive interface make it easy to create sequences with no prior experience. You can customize the words and timing to fit your firm’s style, so your messages feel natural and personalized, while freeing you up to concentrate on other matters.

The tool also includes dashboards and reports so you can see how people are responding to your messages.

Step 2: Simplify consultations

It takes time to prepare for a consultation, and missed appointments cut into work time for attorneys and professional staff alike. Reduce no-shows with Tabs3 CRM’s automated reminders, delivered by text or email. Reminders can include information about cancellation and no-show policies to encourage timely rescheduling.

Tabs3 CRM also offers a shared calendar and personalized task lists to help your office keep track of consultations and other intake events.

If you gathered documents prior to or during the consultation process, Tabs3 CRM can store them for you. Any authorized user in your firm can quickly access the documents when needed, and the materials can be transferred into Tabs3’s PracticeMaster if the lead engages your firm.

Step 3: Secure the engagement

If you want to represent the potential client, it is critical to get engagement letters and other representation paperwork out as soon as possible. Tabs3 CRM makes it simple to send forms and gather electronic signatures.

You can use the software to create customized engagement letters and fee agreements, using an interface that looks similar to Microsoft Word or Adobe Acrobat. Simply import your existing forms, and with a few tweaks, you can create a firm-specific library of options tailored to your practice areas and your firm’s policies.

When sending a letter to a potential client, you can select a form and initiate the e-signature process in seconds. The lead receives a secure link that allows them to read and sign the documents electronically, and the signed document is automatically returned to your office.

👉 Set up a personalized demonstration with our experienced trainers today.

Shift seamlessly from prospect to client

If you choose to represent the client, you can move the new client’s information into PracticeMaster in just a few clicks. That means less repetitive data entry and more time for billable tasks. Your intake workflow transitions gracefully into your new client workflow.

From first contact to conversion, streamline your intake workflow with Tabs3 CRM

All law practices struggle to balance client work with administrative tasks. You can take charge of your intake workflow with Tabs3 CRM:

• Screen leads quickly with custom intelligent forms
• Integrate Tabs3 CRM with a Tabs3 Website
• Automate marketing with time-saving tools and templates
• Follow up with precision to convert more clients

Our expert trainers are ready to show you exactly how your practice can benefit. Sign up for your personalized demo today.

👉 Learn more about the benefits of Tabs3 CRM

Your practice is busy. Staffing is lean. Clients expect speed. How does an overworked law office keep all the plates spinning? The right legal practice management software could make all the difference. Finding your fit could mean less administrative work—and better results.

This guide covers four reasons criminal defense firms can benefit from legal practice management software.

👉 Set up a personalized demonstration with our experienced trainers today.

What is law practice management software?

Legal practice management software helps you run your law firm. Unlike general-purpose business software, legal practice management software is designed just for law firms. For instance, it includes built-in tools to manage your trust accounts ethically and find potential conflicts before ethical issues arise.

Features vary among platforms, but legal practice management software usually offers some or all of the following:

• Time and billing (timers, time entries, invoicing, vendor payments)
• Financial management (bookkeeping and advanced financial tasks)
• Contact management for conflict checking and case management
• Case management (calendars, digital files, digital documents, workflow automations)
• Reporting and analytics to help you track your success

Some vendors combine features into a single product, while others create separate modules. Modular software allows you to choose the features you need based on your firm’s current needs and scale as you grow.

1. Stay compliant (and in the black)

Practice management software with robust financial features can reduce the time you spend managing the biggest keep-the-lights-on task: time and billing. The platform you choose should be simple and efficient, with strong guardrails around trust accounting and other compliance issues.

Criminal defense firms can get the following benefits.

Track your time effortlessly (even for flat-rate cases)

If your firm uses hourly rates, tracking time is crucial.

Even on flat fee matters, however, including time entries on account statements can help you manage your clients by showing the value of your work. And with accurate time data, you can check your flat rates against the actual time spent on cases and adjust future rates accordingly.

Look for time tracking products that fit your workstyle and caseload. For instance, you might appreciate a platform with a mobile app that allows you to track time when you are moving from depositions to court and back again. Apps allow you to write time entries on the go too, when your memory is freshest.

Some tools can flag common narrative mistakes as you write your entries, and have digital options for revising time entries during the billing statement approval process.

Get control of your cash flow

Staying on top of billing and collections can mean better collections rates. When generating statements is fast and easy, you are more likely to do it every month. Thus, good financial management software can help you collect more money in less time.

The best software for your practice is one that matches your firm’s unique needs. Consider your current statement approval workflow and how the software could speed up, automate, or otherwise improve that process, like:

• Accepting payments the way your clients want to pay (usually electronically).
• Reducing the number of steps it takes to generate, modify, and finalize invoices.
• Preventing unauthorized modification of time entries and invoices.
• Sending invoices by email or secure sharing link (if the client desires).
• Preventing trust/operating account mix-ups.
• Reporting on your collections rates so you can take action early.

If you use retainers or flat fees, look for software that can track retainer usage, make it simple for your clients to top up evergreen retainers, and send regular statements showing the work you have done on the client’s behalf.

Keep the bills paid and the books balanced

Your firm also has bills to pay, and financial software can save a great deal of time in accounts receivable. For example, you can automate recurring payments, pay electronically, see which invoices need to be paid, and manage 1099s.

If you handle bookkeeping in-house, a fully-featured financial management package can include general ledger as well trust accounting.

2. Build better relationships and avoid case conflicts

From intake to case resolution, managing client relationships (and finding conflicts early) is the name of the game.

Key wins for criminal defense practices include the following.

Find conflicts of interest faster

Even if you are a solo practitioner, your memory or a past client spreadsheet may not catch every potential conflict. Since any individual you come into contact with during a case could be a source of a conflict, the number of names you must record or remember is overwhelming.

Digital conflict checking can take the burden off you while increasing the accuracy of your conflict checks. A fully integrated practice management system can automatically search all your files, your emails, and your contact database. You can still do a memory-based cross-check, and you will make representation decisions with more confidence.

Put client information where the team can reach it

If your client and contact information is stored in multiple locations, a single synchronization error can become a headache. Centralized contact management allows everyone in the firm to see client contact details (as appropriate to their role) and ensures anyone who needs to contact a client has up-to-date information at their fingertips.

Speed up client communications

Sharing documents, getting signatures, and reminding clients about court dates and appointments can take up a lot of time. Many of those tasks can be automated with the right software.

For example, you may be able to:

• Send clients automatic text or email reminders about important events.
• Share documents quickly and securely without the risk of traditional email attachments.
• Gather legally binding eSignatures for engagement letters and other documents.

It is also important to retain client emails, both for your own case work and for future conflict checking efforts. Many contact management modules can integrate with your email.

Find your best-fit clients

Some contact management modules help you grow your firm by improving your marketing and intake processes. You might use the software to share intake data, automate potential client follow-up and reminders, and even collect pre-screening data to reduce the time spent doing intake for cases you cannot accept.

3. Get more organized and productive

If you are wasting hours every week managing paper files, disconnected calendars, and workflows full of repetitive manual tasks, practice management software can reduce your workload significantly. Many practice management systems include a case management module, which simplifies day-to-day client work.

Criminal defense firms often prioritize the following capabilities.

Never miss a deadline

When you are juggling filing deadlines, motion hearings, client conferences, and other court appearances, it can be difficult to keep the team in sync. Practice management platforms often include shared calendars to make coordination easier.

You can typically limit sharing to smaller groups. For instance, if a paralegal supports multiple attorneys, they can see both attorneys’ calendars, but neither attorney can see the other’s calendar. This keeps cluttered calendars cleaner and reduces mix-ups.

Eliminate repetitive manual tasks

In many criminal defense practices, everyone wears many hats. Any time you save on often-repeated tasks eases the workload. Reducing the need for double data entry is a common automation target.

That can take the form of data mapping, like a tool that moves potential client data from a CRM and into a case management module after the engagement letter is signed. Or it might mean digitizing the statement review process, so revisions are typed in instead of handwritten and then transcribed.

Instant access to the information you need

Centralizing and digitizing data storage keeps your team in sync and reduces the time spent looking for documents. Storing documents electronically minimizes the need for costly on-site document storage.

Digital access is even more powerful when you are away from the office. Software with a mobile app empowers you to review a file at home, look up a client’s address on the go, and search case documents while you are in court.

👉 Set up a personalized demonstration with our experienced trainers today.

4. Keep your eyes on the big picture

When workloads are intense, it is tempting to focus only on the work in front of you. That said, strong reporting and analytics tools can help keep your firm healthy—now and in the future. Practice management platforms usually come with built-in reporting capacity for most modules, and some offer advanced business intelligence and analytics.

Criminal defense firms can use reporting and analytics in the following ways:

Stay on top of short-term goals

Virtually every practice management platform comes with bread-and-butter reports like aging WIP (for time tracking and billing) and lead tracking (for CRMs). Regularly reviewing and taking action on reports is essential for every firm.

It is important to evaluate whether a platform’s built-in reporting meets your needs. Many law firms find they need at least a few custom reports, so you may wish to consider the availability of custom reporting (and what technical knowledge is needed to create reports).

Position for a successful future

Many firms can benefit from monthly, quarterly, or annual reviews of the firm’s progress towards long-term goals. That might include:

• Checking utilization and progress towards billing targets for each timekeeper.
• Analyzing the time spent on flat fee cases to determine whether rates need adjustment.
• Evaluating the progress of marketing efforts and then iterating with new ideas.
• Tracking financials to see where your dollars are going.

By choosing a practice management system that includes reports like this, you can spend less time reinventing the wheel. In some cases, you can get dynamic dashboards that visually represent close to real-time data.

Build a more prosperous criminal defense practice with Tabs3

Tabs3’s suite of legal practice management products was designed with you in mind. The platform is modular, so you can choose the features you need now and scale up as your practice grows. For example, you can:

• Make time tracking, billing, and retainer management effortless with Tabs3 Billing.
• Accept electronic payments with Tabs3Pay.
• Work wherever you choose with Tabs3Cloud.
• Manage bookkeeping, trust accounting, and pay bills with Tabs3 Financials.
• Get your team in sync and centralize document/client data storage with Tabs3 PracticeMaster.
• Get more clients in less time with Tabs3 CRM.

Want to learn more? Our legal practice management software experts are ready to listen to your needs and show you how Tabs3 can help. Schedule your demo today.

👉 Set up a personalized demonstration with our experienced trainers today.

In Billing 101: Introduction to Billing Methods (Part 1), we discussed the terminology and structure behind hourly, contingency, and flat rate billing. But now that you have the invoice total, how do you plan to bill for it?

👉 Note: While this guide is software-agnostic, Tabs3 Billing users can get how-to information about each of these methods in the Billing Methods Guide.

There are multiple ways to bill for any fee structure

The fee structures above are about what the client owes the firm. The fee agreement also lays out when the client must pay and/or receive statements.

Billing/statement cadences vary

One-time billing is the simplest billing scenario. The client owes one all-inclusive fee, plus costs, minus discounts. The bill might be sent at the outset, at the end of the matter, or at another time.

Recurring periodic billing/statements can be used for any fee structure, including:

• A strictly hourly matter where all fees and costs are billed monthly.
• A flat fee paid in more than two or more installments.
• An ongoing flat fee engagement where the flat fee renews every month.
• Monthly information-only statements for a contingency case.

Threshold billing is waiting to bill until fees or costs reach a target amount. Instead of billing every month, you only bill when there is enough work-in-progress or expenses to meet the threshold. Your firm might also send information-only statements during cycles where the threshold is not reached.

Some bills are paid from a retainer

Sometimes you will send a bill to the client and wait for payment. Often, however, you can bill against a retainer.

A retainer is a lump sum payment to a firm.

• A security retainer is an advance payment on the client’s fees. It does not belong to the firm until the firm earns it, so it is held in the trust account. The client may need to replenish the retainer as fees are earned, or pay a recurring retainer.
• Clients can also pay a general retainer to reserve capacity at the law firm. It is considered earned right away, so it does not go into the trust account. The client must pay for the actual services separately.

The details of each retainer are set out in the fee agreement. There are ethical rules that govern how law firms handle retainers, so it is important to understand the exact terms of each retainer.

In the billing function, you might interact with retainers in several ways:

• Billing monthly for services completed, but paying the bill from the retainer instead of waiting for the client to send payment. The firm transfers money from the trust account into the operating account, and sends the client an informational statement.
• Asking the client to replenish their retainer balance, either periodically or when a certain threshold is reached.
• Refunding unearned retainer money to the client.
• Billing for a general retainer.

Some bills might be split among multiple entities

In some matters, you may need to apportion a bill among several groups. This can come up in transactional cases that involve multiple business units of a single company, or when a lawyer represents multiple clients on the same matter.

The fee agreement will lay out the details of the split. Both fees and costs can be split, and the percentages vary from case to case. You might also need to display nonbillable transactions on multiple invoices, or allocate credits among multiple clients.

Task-based billing uses codes to enable financial tracking

If your firm serves insurance companies or large corporations, you may need to do additional setup when opening a file. Sometimes this function is handled by a specialized e-billing clerk. When you add fee entries for task-based billing clients, you must include certain codes that describe the work done. This allows the client to track the fees and costs at a granular level. The bill is also submitted electronically.

Discounts, write-downs, write-ups, and write-offs impact totals

Reductions or increases in the bill are the last piece of the puzzle. Firms use a variety of words for these concepts, but the concepts themselves are the same across almost every firm.

• A discount means a reduction of the entire bill, usually by a percentage. Discounts can be one-time or recurring.
• A write-down means reducing the amount of time billed for a task, or removing certain time entries completely. Partners typically do this during statement review/pre-billing. It can also happen during collections, in which case you may need to create a revised statement. You may also be asked to run reports about write-downs, because consistent underbilling can undermine cash flow and reduce partner compensation.
• A write-up means increasing the amount billed beyond what is included in the work-in-progress. This might come up in contingency cases, where the firm is entitled to a certain percentage of a settlement even though it exceeds the amount the firm would have billed on an hourly case.

A write-off means forgiving an unpaid bill (or part of it). Write-offs have tax consequences, so deciding to write off debt is a strategic decision.

Questions to answer when setting up a new case

The following questions can help you get prepared to set up a new case. Depending on your firm, you might get this information from the fee agreement, from someone in your department, from the attorney, or some combination of those. You may want to add other questions that reflect your firm’s unique file-opening process.

For all matters. Detailed questions are in the following sections.

• Will the bills go to a single entity, or will they be split?
• Does this matter require task-based billing?
• Will we apply any thresholds for billing in this matter? If so, what are they?

For matters with retainers.

• Is this a security retainer that will be applied to fees and costs as they accrue? (If not, verify that it is a general retainer and should be placed in the operational account.)
• Is the retainer a one-time payment, or will the client need to replenish it? If so, when should the client replenish it?
• Will the client pay a retainer every month (or at some other cadence)? If so, is there a threshold at which we need to collect fees in another way, like hourly billing?
• What happens to the retainer at the conclusion of the matter (i.e., balance refunded or retained as earned fee)?

For matters with split billing.

• How will fees and costs be split?
• How will credits and nonbillables be split?
• How will advance fees or retainers be split?
• For fees, do you want to split the amount due (hours x rate), or split the hours and then apply rates to calculate the amount due?

Tabs3 makes every fee structure and billing methodology easier

If your firm is not using Tabs3 Billing yet, we would love to show you how easy even complex billing can be. The platform offers virtually unlimited billing options, with smart shortcuts to save you time. You can even handle the statement approval process entirely within Tabs3 Billing with our pre-billing feature.

👉 Set up a personalized demonstration with our experienced trainers today.