Time-tracking and fees: how to bill the hours worked per matter correctly

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Time-tracking • Fees

Time-tracking and fees: how to bill the hours worked per matter correctly

Many hours a lawyer works never make it onto an invoice because they were not logged in time. Correct per-matter time-tracking turns every billable hour into a collected fee. Below you'll see how to bill the hours worked per matter correctly, with time-tracking and clear fee rules.

The steps (short answer)

  1. Log the time against the matter as soon as you finish the task, not at month end.
  2. Note briefly what you did, so you can justify the entry on the invoice.
  3. Mark each hour as billable or non-billable.
  4. Apply the lawyer's hourly rate or the fixed fee agreed for the matter.
  5. Generate the client invoice from the approved hours, with an activity breakdown.

Fixed fee vs. hourly fee

  • An hourly fee suits litigation with an unpredictable workload.
  • A fixed fee suits standardised work with a clear scope.
  • A success fee is added on top of either, conditioned on the result.
  • Whatever the model, per-matter time-tracking shows whether the fee covers the real effort.

Table: paper time-tracking vs. in-software time-tracking

Paper time-tracking vs. in-software time-tracking

CriterionOn paperIn software
Lost hoursMany hours forgotten before billingReal-time logging, minimal loss
JustificationHard to explain to the clientAutomatic activity breakdown
The invoiceCalculated manually, with errorsGenerated from approved hours

Common mistakes

  • Logging hours at month end from memory — you lose half of them.
  • Not separating billable from non-billable hours.
  • Issuing the invoice without an activity breakdown, so the client disputes it.

How 4lawyers helps

  • Per-matter time-tracking, with an activity description for each entry.
  • Worked hours stay linked to the matter and the client, ready for billing.
  • Fee invoicing through 4invoices, starting from the recorded hours.

See also