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Computation of Benefit - Inefficient Time Entry
The following example details common inefficiencies regarding the accumulation of billable time.
Example: An attorney manually records a calendar transaction. Once the calendared transaction is completed,
the attorney re-records this transaction on a paper time sheet or dictation tape.
This recording may be missing required information, such as client or matter codes, which is then
passed along to the secretary for completion. Thereafter the completed transactions are batched
together and entered into a computerized billing system. Prior to invoicing, the attorney must again
perform a detailed review of the stored work in process looking for mistakes such as transposed client or matter codes,
misspelled names, etc.
Analysis of Costs:
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Recording the initial calendar and/or time transactions:
No significant savings, this activity must be performed regardless of system utilized. |
$0
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Re-recording the completed activity by the attorney on a manual time sheet:
Conservatively estimated at 20 minutes of billable attorney time per day or 83.5 billable hours per year.
Computation: (80 hours * average billing rate of $150/hr) |
$12,000
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Completion and review of time sheets by the secretary -and-
Processing of time sheets into a computerized system.
These two functions infringe upon the existing secretarial workload or require additional administrative support.
The cost may be best represented as consisting of 1/4 of an additional support person.
Computation: (1/4 of the estimated $25,000 annual earnings of the required support person) |
$6,000
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A second detailed review of work in process by the attorney prior to invoicing:
Due to lack of immediate control of the time entry process by the attorney, the attorney must review for accuracy each
transaction prior to billing to catch errors such as incorrect matter codes, spelling errors, etc.
The detail review of work in process prior to billing is estimated at 4 hours per month - 48 hours per year.
Computation: (48 hours per year * average billing rate of $150/hr) |
$7,200
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Total potential cost per solo attorney due to inefficient
time entry procedures: |
$25,200
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More Info
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Rule of Thumb-
The greater the time between the performance of services and the recording of
those services for billing, the less likely that all time will be accounted for accurately.
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L.A.W.S./Pro Calendar-
The L.A.W.S./Pro calendaring system provides
a simple and efficient means of managing scheduled appointments as well as recording
billable time and expense transactions.
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