How time capture resolves profit challenges according to oneAdvanced
One of the most significant areas where profits can leak is through missing and incorrect time entries. On average, fee earners fail to record 222 billable hours each year, a substantial loss when translated into potential revenue. However, with the advent of time capture technology, firms now have a powerful tool at their disposal to reclaim these lost hours and, by extension, bolster their bottom line.
The profit challenge
The financial health of a law firm hinges on its ability to accurately capture and bill for the time spent on client work. Unfortunately, the traditional methods of time recording are fraught with challenges. Fee earners might forget to log a phone call, overlook an email exchange, or underestimate the time spent on drafting documents. These omissions and inaccuracies can lead to a significant underreporting of billable hours.
In our Legal Sector Trends Report 2024 you told us that missing and inaccurate time entries make up the biggest forms of profit leak at 60%. Furthermore, firms typically collect only 89% of invoiced amounts due to disputes over charges, further exacerbating their profit challenges.
The source of the pain
The implications of missing and incorrect time entries extend beyond just financial losses. They also affect a firm’s credibility and client relationships. Clients demand transparency and accuracy in billing, and any discrepancies can lead to disputes and erode trust. Additionally, when fee earners are continually catching up on time recording, it not only leads to errors, but it also detracts from their ability to focus on high-value work, creating a cycle of inefficiency and lost revenue.
A solution at hand
OneAdvanced Time Capture software offers to ease these challenges. By automatically tracking the activities of fee earners, this technology ensures that time spent on client work is accurately recorded. Whether it’s a phone call, an email, or any other client-related activity, time capture tools log these tasks in real time, leaving little room for omissions.
Using cloud technology that consistently captures time the instant it’s worked, regardless of location or device. This not only helps in recovering 66 hours of time fee earners would have spent manually entering time entries but also aids in catching missed time and correcting inaccuracies in time entries. Consequently, firms can produce detailed and accurate invoices that reflect the true extent of work performed, reducing the likelihood of client disputes over billing, increase trust, and help your firm to develop long-term client relationships.
Benefits and beyond
The adoption of OneAdvanced Time Capture technology brings several tangible benefits to law firms. Firstly, it significantly reduces the time and effort involved in the manual recording of billable hours, freeing up fee earners to focus on their core legal work. Secondly, by ensuring the accuracy and completeness of time entries, firms can realise a higher percentage of their invoiced amounts, directly impacting their profitability. Additionally, the detailed breakdown provided in invoices enhances transparency with clients, fostering trust and satisfaction.
Furthermore, we have taken the data discussed here and put it into an equation, so you see the quantifiable effects time capture has on a firm. By capturing 222 missed hours, saving fee earners 66 hours of work and managing to invoice that final 11% with transparent detailed invoices to help ease clients and lower fee discounts, time capture has visible tangible results. See for yourself with this time capture calculator, and find out just how much additional profits you can realise.
When it comes to the cost of Time Capture software compared to the profit it brings in, Brian McDonald, Head of IT at Peters & Peters put it best “It’s not a particularly expensive product, and in terms of return on investment, I’m sure it’s paid for itself over and over again. The last three years have been our most successful ever and we keep increasing our revenue year-on-year. Pound-for-pound this is in part attributable to the implementation of Time Capture.”
For law firms grappling with profit challenges, time capture software represents a crucial strategic tool. By automating the time entry process, these solutions not only recover lost billable hours but also enhance the accuracy of billing, leading to improved revenue collection and client relationships. When every hour counts, the adoption of time capture technology could well be the difference between merely surviving and thriving. It’s clear that in the quest for profitability, the right technology is not just an option; it’s a necessity.
