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Time Tracking Best Practices

1,800

typical annual billable hour target for solo attorneys

23%

of billable time lost to poor tracking practices

6 min

industry standard minimum billing increment

Time Tracking Categories

Billable Time

Time directly spent on client matters that can be billed

Common Examples:

  • Research and legal analysis for client matters
  • Drafting documents and correspondence
  • Client meetings and consultations
  • Court appearances and depositions
  • Case strategy and planning sessions

Best Practice Tips:

  • Track in 6-minute (0.1 hour) increments minimum
  • Record contemporaneously when possible
  • Include specific task descriptions
  • Note any interruptions or delays

Non-Billable Time

Essential practice activities that cannot be charged to clients

Common Examples:

  • Administrative tasks and office management
  • Marketing and business development
  • Professional development and CLE
  • General legal research and knowledge building
  • Billing and collection activities

Best Practice Tips:

  • Track for practice management insights
  • Identify opportunities to reduce
  • Consider efficiency improvements
  • Monitor ratio to billable time

Billing Increment Standards

6-minute (0.1 hour)

Most Common

Industry standard for most legal services

1 hour = 10 billing units of 6 minutes each

Advantages:

  • • Widely accepted by clients
  • • Reasonable precision
  • • Easy mental calculation

Considerations:

  • • May undervalue very brief tasks
  • • Requires rounding decisions

15-minute (0.25 hour)

Traditional

Older standard still used by some firms

1 hour = 4 billing units of 15 minutes each

Advantages:

  • • Simpler tracking
  • • Values brief consultations appropriately

Considerations:

  • • May seem excessive for small tasks
  • • Less precise than 6-minute

1-minute

Precise

Exact time tracking for litigation-intensive practices

Bills exact time spent on each task

Advantages:

  • • Maximum precision
  • • Fair to clients
  • • Detailed records

Considerations:

  • • More complex administration
  • • May face client resistance

Time Entry Best Practices

Daily Habits:

  • Record time contemporaneously
  • Use specific, descriptive task descriptions
  • Track all activities in real-time when possible
  • Review and finalize entries daily

Quality Standards:

  • Include date, matter, and specific task
  • Explain value delivered to client
  • Avoid vague descriptions like "legal research"
  • Document interruptions and task switching

Technology Solutions

Time Tracking Software

Key Features:

  • Automatic start/stop timers
  • Project and matter categorization
  • Mobile app for on-the-go tracking
  • Integration with billing systems
  • Detailed reporting and analytics

Popular Options:

ClioMyCaseTimeSolvBill4TimeToggl

Mobile Solutions

Key Features:

  • Voice-to-text time entry
  • GPS location tracking
  • Offline time capture
  • Quick task shortcuts
  • Real-time synchronization

Popular Options:

TSheetsClockifyRescueTimeHoursTimeTree

Common Time Tracking Problems

Problem: Delayed Time Entry

Impact:
  • • Forgotten tasks and lost billable hours
  • • Inaccurate time estimates
  • • Poor client descriptions
Solution:
  • • Use mobile apps for immediate capture
  • • Set hourly reminders to record time
  • • Develop habit of contemporaneous entry

Problem: Task Switching and Interruptions

Impact:
  • • Reduced efficiency and focus
  • • Difficulty attributing time accurately
  • • Client billing disputes
Solution:
  • • Block time for specific clients/matters
  • • Document interruptions separately
  • • Use time tracking software with pause/resume

Client Communication About Time and Billing

Transparency Practices:

  • • Explain billing increment policies upfront
  • • Provide detailed time entry descriptions
  • • Send regular billing statements with explanations
  • • Offer to discuss any billing questions
  • • Use client-friendly language in time entries

Managing Expectations:

  • • Provide realistic time estimates for tasks
  • • Explain factors that may affect timing
  • • Update clients on significant time expenditures
  • • Offer fixed fee alternatives when appropriate
  • • Document all billing-related communications