{"id":13320,"date":"2022-03-04T16:00:09","date_gmt":"2022-03-04T14:00:09","guid":{"rendered":"https:\/\/www.amberlo.io\/?p=13320"},"modified":"2022-03-28T15:04:23","modified_gmt":"2022-03-28T13:04:23","slug":"what-is-legal-expense-management","status":"publish","type":"post","link":"https:\/\/www.amberlo.io\/blog\/law-business\/what-is-legal-expense-management\/","title":{"rendered":"What Is Legal Expense Management & Why Is It Important?"},"content":{"rendered":"

Legal expense management is a necessary process for law firms to control job costs and bill clients accurately.\u00a0<\/span>By practising legal expense management, your firm will also be better equipped for budgeting and predicting future spending.\u00a0<\/span>In this guide, we\u2019ll cover everything you need to know about expense management and how it can streamline your law practice.\u00a0\u00a0<\/span><\/p>\n

What is legal expense management?<\/span><\/h2>\n

Legal expense management is a system of giving legal firms instant insight into their client account spending and related legal costs. It includes tracking all the fees associated with executing a client’s job, for example, court or other legal institution\u2019s fees and travel expenses.\u00a0<\/span><\/p>\n

The process also helps keep track of expenditure when your firm needs to cooperate on cases with other lawyers who are needed for their expertise and specialization.\u00a0\u00a0<\/span><\/p>\n

Tracking internal and external expenses on a case-by-case basis ensures that you are able to make an accurate evaluation of the total costs your firm has incurred. From there, you are able to accurately bill your clients in a timeous manner.\u00a0<\/span><\/p>\n

In general, the process of legal expense management covers getting visibility of expenses, identifying and implementing cost-reduction opportunities, and effectively budgeting for future costs.\u00a0<\/span><\/p>\n

Today, legal billing software<\/a><\/span> will support the system behind expense management. The software is usually a component of a <\/span>law practice management platform<\/a><\/span>, which gives you <\/span>multiple areas of functionality<\/a><\/span><\/span> to work more efficiently in your firm.\u00a0<\/span><\/p>\n

Why is it essential for law firms to have a system in place?<\/span><\/h2>\n

\"5<\/p>\n

Corporate legal firms process thousands of client accounts invoices each year. Manually reviewing and reconciling these accounts can be time-consuming and leave the firm open to error. Not to mention that the sheer size of the task can be overwhelming for the teams working on it.\u00a0<\/span><\/p>\n

Often, firms don\u2019t have any reliable system to enforce billing standards. This causes staff attorneys to spend more time than they should be sorting through incoming invoices and subsequently accurately billing clients.\u00a0<\/span><\/p>\n

Besides the burden it places on staff, law firms end up over or undercharging each year because of undetected errors.<\/span><\/p>\n

Benefits of using legal expense management software<\/span><\/h3>\n

Legal expense management software is a fantastic solution for law firms to effectively and accurately manage costs and keep on top of the workload.\u00a0\u00a0<\/span><\/p>\n

There are incredible benefits to be realized, including:<\/span><\/p>\n