Understanding Billable Hours in Law Firms
Billable hours are the backbone of revenue for law firms, yet 80% of timesheets often contain errors that can lead to significant billing discrepancies. For law firms, accurately tracking billable hours is crucial, as 15-20% of billable income can be lost due to improper time tracking. This highlights the importance of a reliable system to calculate and manage billable hours efficiently. The complexity increases when managing multiple attorneys, each with different rates and billing structures.
Harvest offers a comprehensive solution by supporting time tracking for different types of legal work, whether it be litigation or transactional. By setting up projects as Time & Materials, Fixed Fee, or Non-Billable, law firms can ensure precise billing practices. With Harvest's ability to track time in increments, such as tenths of an hour—a common practice in legal billing—firms can mitigate errors and improve billing accuracy.