Legal computer apps Chapter 4
How do you convert time using quarter of an hour?
0-15 = .25hr 16-30= .50 hr 31-45= .75 hr 46-60 = 1.0hr
How do you convert time using tenths of an hour?
0-6=.1hr 7-12=.2hr 13-18-.3hr 19-24=.4hr 25-30=.5hr 31-36=.6hr 37-42=.7hr 43-48=.8hr 49-54=.9hr 55-60=1.0hr
What are the seven basic steps of the timekeeping and billing process?
1. Agreement of fee 2. Performance of work, expense slips generated 3. Expense slips entered into billing system 4. Computerized pre-billing report generated and reviewed 5. Client billings generated and mailed to client 6. Management report run 7. Client payments entered into billing system
List some functions of a successful billing system
Accurately track how much client has paid Send regular billings provide client billings that are fair, respectful, identify what services have been provided, and are clear
When a charge is based on the type of service performed, it is called?
Activity hourly rate
What report shows all cases that have outstanding balances due?
Aged accounts receivable report
What is an hourly fee agreement based on an attorney's experience called?
Attorney hourly rate
What is a requested featured to have in a timekeeping and billing software?
Billing preference option
What is a big improvement over traditional paper billing for large clients
Computerized billing
A type of billing based on a percentage of the total amount awarded to the client is called?
Contingency fee
List Some reasons attorneys commonly give discounts
Don't have to chase for money, reoccurring customer, professional courtesy, due to hardship
Define value billing
Fee agreement based not on the time required to perform but on basis of value.
Define a case retainer
Fee billed to client that is not refundable. earned
Define a pure retainer
Fee that obligates office to be available to represent the client
What is the most common type of fee agreement called?
Hourly rate
Explain IOLTA and how it works?
Interest of law office trust account banks. Take interest earned by trust accounts and pay that money to the state IOLTA program. Money is used to fund defense programs
Who uses the management reports?
Law office staff
Define earned retainer
Money the law office has earned and is entitled to deposit in their own account. Fees
Define unearned retainer
Money up front by client as an advance against attorney's future fees and expenses
When should you send out bills to clients?
Monthly
Explain recurring cycle?
Once bills are produced and payments are made the process starts over if more work is performed on a case. Timekeeping and billing cycle.
What is a rough draft version of an invoice called?
Pre-billing report
Describe a fee agreement?
Specify hourly rates, contingency fees,flat fees or retainer fees
What report would you check to see which paralegal was billing the most hours
Timekeeper productivity report
What is tracking of time called?
Timekeeping
List three main components of a back-office computer system in an automated legal organization
Timekeeping and billing, accounting software, case management software
Define cash advance
Unearned money to cover attorney's future fees and expenses
What is necessary in a contingency fee agreement for it be acceptable?
be in writing
What are the four types of expenses the law firms commonly bill to clients
document, time, labor, travel
When a corporation requires continuing legal services throughout the year, which type of retainer should be required?
general representation
When filing out a timeslip, what should you never do?
lie, discount
What is the most ethical complaint filed against attorney's
related to time keeping and billing
