Attorney invoicing software automates time tracking, organizes expenses and generates accurate invoices for legal professionals. The software accurately records billable hours and costs and charges them to the right client.
In this article, you’ll learn what attorney invoicing software is, why it’s useful for law firms and key features to consider when choosing practice management software to bill clients. You’ll also discover five top systems to improve law firm billing.
What is attorney invoicing software?
Attorney invoicing software is a specialized billing and time-tracking solution for law firms. It helps legal professionals manage client billing, record billable hours, generate invoices and ensure compliance with legal industry regulations.
Invoicing tools also help law firms standardize invoice formats per law practices, such as the LEDES billing (Legal Electronic Data Exchange Standard) format.
For example, invoicing software like TimeSolv makes it easy to generate LEDES invoices. These documents feature specific codes for categorizing billable activities, expenses and time entries (which is necessary for LEDES formatting).
Instead of manually creating invoices with all this information, the software generates them automatically through an LEDES invoice template.
Here’s an example of how invoicing appears in TimeSolv’s interface:
Other types of technology can also support the legal billing process.
For instance, a client relationship management system (CRM) organizes customer data, pricing structures and communication history, making it easier to streamline and personalize invoices.
Another example is a project management solution. Attorneys can track case progress, assign tasks and manage deadlines, ensuring accurate billing for tasks and milestones completed during a case.
Is attorney invoicing software the same as legal billing software?
While attorney invoicing software and legal billing share similarities, legal billing software typically covers a broader range of functionality:
Attorney invoicing software | Has features for creating and managing invoices for legal services. It focuses on generating invoices, tracking payments and managing client billing. |
Legal billing software | Includes all aspects of billing for law firms. For example, time tracking, expense tracking, invoicing, retainer management and compliance with legal billing guidelines. |
If you’re considering software for your law firm, the name difference between these systems isn’t significant. Instead, focus on the specific features you need, such as time tracking, custom billing rates or compliance features (like secure data handling).
Attorney invoicing: 5 systems that make your life easier
Managing billable hours and invoicing can be a real burden for lawyers, especially when juggling multiple cases. It’s easy to lose track of the time spent on each activity, leading to inaccurate billing.
The right technology simplifies your efforts by automating time tracking, organizing expenses and creating invoices on your behalf, saving time and avoiding costly mistakes.
Here are some of the best legal billing software systems to consider:
Note: Not all of these tools are just invoicing systems. Some help you manage key elements of the invoicing process, such as client management, bookkeeping admin and so on.
1. Pipedrive: best for managing client interactions and timelines
Pipedrive’s CRM helps small businesses (including law offices) manage client relationships, automate follow-ups and monitor progress in deals or activities.
Keeping track of client communications, case management and pending invoices can quickly become overwhelming for legal teams – especially with multiple clients and complex cases.
Pipedrive lets legal teams handle all relevant information in a central location. You spend less time manually tracking emails, calls and billing updates and more time on higher-value tasks, such as legal research and client advocacy.
The invoicing feature allows you to create, view and send invoices to your invoicing app directly from the Pipedrive interface. Then, you can generate and track invoices alongside case progress.
Here are some other Pipedrive features that support legal teams to manage client interactions:
Client communication tracking. Log and organize all client emails, calls and messages in one place, ensuring you don’t miss any communications.
Customizable sales pipelines. Create custom CRM workflows tailored to your legal processes, helping you track each stage of a case and client interaction efficiently.
Automated follow-ups. Automate reminders and follow-up emails to ensure legal professionals never forget to contact clients – improving client satisfaction and maintaining strong customer relationships.
AI-powered insights. Use Pipedrive’s AI to analyze communication history and suggest personalized responses, saving time while ensuring client interactions are tailored to their needs.
Document management with Smart Docs. Store and organize critical legal documents in Pipedrive, making it easy to access case files and share necessary paperwork with clients.
Customizable dashboards. Create a dashboard with key invoicing data (like upcoming and overdue payments) for complete billing visibility.
In addition, Pipedrive has project management features that help legal teams monitor case progress and stay on top of key deadlines. Whether responding to a client query or sending them an invoice for your time, the software minimizes the risk of missed steps or delays.
Pipedrive also integrates with time-tracking apps like Timely, meaning that legal professionals can accurately record billable hours related to each task. As a result, invoices reflect the exact time spent on specific activities.
Crush your manual admin with this sales automation guide
2. TimeSolv: best for tracking billable hours
TimeSolv is an e-billing time-tracking software whose interface lets you start and stop timers with a single click. You create a new task in the calendar, add a new time-tracking activity and work away.
Tasks like phone calls, emails and research can easily slip through the cracks if not recorded immediately. TimeSolv enables time logging of different activities.
You can also run multiple timers – manually starting one ends another. This flexibility lets you flow between tasks while continuing to track time for invoicing.
For example, if you’re preparing a deposition summary and need to pause to take a client consultation call, switch timers to track both activities accurately.
TimeSolv also has a user-friendly, cloud-based dashboard that displays key financial information at a glance. You can see how many hours you’ve worked for a client, the average cost per hour and the total billable amount.
3. LawPay: best for handling secure online payments
LawPay is a payment processing solution designed specifically for law firms. The platform accepts online payments and tracks client transactions in one place.
An essential aspect of invoicing is ensuring clients can pay their invoices easily. Without a reliable payment solution, law firms may delay receiving payments.
With LawPay, customers pay invoices online through a secure client portal. They can choose their preferred payment methods, such as credit cards, debit cards or e-checks to facilitate quick payment.
The software also ensures you receive payments in compliance with ABA (American Bar Association) and IOLTA (Interest on Lawyers’ Trust Accounts) guidelines. When you receive payment, LawPay deposits:
Earned fees into the operating account
Unearned funds (like retainers) into a trust account
During the initial setup, you manually link your accounts. The tool then automatically allocates funds to the right account.
4. Quickbooks Online: best for end-to-end invoice management
QuickBooks Online is a cloud-based accounting software that streamlines financial management for businesses, including law firms. It offers features for end-to-end invoice management, including customizable invoices, automated billing and payment tracking.
Law firms can quickly become overwhelmed and disorganized without a system organizing invoices. A lack of structure can disrupt cash flow, strain client relationships and divert attention from higher-value tasks like case preparation.
QuickBooks Online centralizes everything in a digital dashboard so users can view, sort and manage all their billing activities in the tool.
The software also integrates with bank accounts for payment reconciliation. It matches client payments with corresponding invoices to maintain accurate records and provide clear visibility into cash flow.
Note: QuickBooks integrates with Pipedrive’s invoicing feature, allowing you to create and manage invoices directly in the CRM. Automatically generate invoices, track payments and get real-time insights into your cash flow.
5. Xero: best for automating client invoices
Xero is an accounting software that helps law firms save time and bill accurately by automating key parts of the invoicing process, including invoice creation and payment reconciliation
Note: Xero integrates with Pipedrive’s CRM to generate invoices based on CRM data. Use the integration to automatically sync client data, track billable hours and ensure exact, timely billing.
With financial transactions tied to different cases, it’s easy for mistakes to occur – think misallocated funds or inaccurate timekeeping. These issues can delay payment and waste valuable time on manual reconciliations.
Xero bases its invoicing on case-specific data, linking time entries and financial transactions to the right clients to minimize billing errors.
Why is attorney invoicing software necessary?
Legal professionals have busy schedules, often juggling multiple cases with tight deadlines. Invoicing software relieves some pressure from legal teams, freeing time to focus on their core responsibilities.
Here are some of the benefits of attorney invoicing software:
Save time with automation
Automation relieves administrative pressure, allowing legal professionals to carry out more important tasks – like fulfilling their attorney duties.
Research shows that small law firms spend 9% of their working hours on administrative tasks and only 61% of their time practicing law. An invoicing system with automation can support attorneys by:
Automatically tracking their billable hours and expenses
Generating invoices accordingly
Sending the relevant invoices to the right client
Take Pipedrive as an example. By integrating with accounting tools like QuickBooks, attorneys generate client invoices directly in the CRM. Pipedrive automatically pulls data to populate your invoices and speed up the billing process.
As a result, legal reps spend less time manually creating invoices from scratch.
Find out more about Pipedrive’s QuickBooks integration in the video below:
Ensure accurate billing
Inaccurate billing compromises client trust. If you overcharge for your time or invoice for work you didn’t complete, those using your services may lose faith in your credibility. Plus, bill inaccuracies may damage your firm’s reputation, which impacts new case acquisition and client retention.
With accounting software, you’re less likely to create inaccuracies. The tool calculates your amounts, minimizing human error and billing clients correctly.
Note: Invoicing software is only reliable as long as you provide it with the right data. Keep the system accurate and up to date by regularly reviewing client details, tracking billable hours and expenses and doing periodic audits to spot discrepancies.
Improve cash flow by reducing late payments
Late payments are still an issue for legal companies, putting them in a tricky financial situation. Attorney invoicing systems help minimize this common problem by:
Integrating with payment providers. Link payment processing to your billing system so clients can pay directly from the invoice. For example, online payment solutions like Stripe and Paycove allow you to add links to your Pipedrive CRM invoices.
Offering multiple payment options. Give clients different online payment choices to help them settle invoices quickly and conveniently.
Sending payment reminders. Platforms like Pipedrive can automate email reminders for upcoming and overdue invoices to encourage clients to pay on time.
With the right software, you can invite on-time payments and build a stable cash reserve for your law firm. Make sure you have enough funds to cover operating costs and other expenses without relying on debt or outside financing.
Build trust with clients
For law firms, trust forms the foundation of client relationships and builds customer loyalty. If people don’t find you reliable, they’re less likely to return for future legal matters or refer your services to others.
Transparency is key to establishing client trust, which is where an invoicing system can help. Invoicing software allows accounts receivable teams to provide a thorough breakdown of:
Billable hours – clear, itemized time entries showing exactly what work attorneys carried out and how long they spent on each task
Expenses – detailed lists of any costs incurred during the case, such as filing fees, research costs or travel expenses
Services rendered – a breakdown of your services to ensure clients understand what they’re paying for
Payment status – current payment status, including any outstanding balances or overdue amounts, to help avoid confusion or disputes
As a result, customers can see a breakdown of what you’ve worked on and what you’re charging for. This visibility reduces the likelihood of misunderstandings or conflicts.
Say a client queries a charge on their legal invoice. Break down your bill into itemized hours, expenses and services to prove you’ve completed the work they’ve hired you to do.
Maintain compliance with trust accounting
Managing retainer billing arrangements and trust funds is a standard task for legal firms that requires strict compliance with regulations. Following these rules isn’t just about obeying the law – it’s vital for protecting your reputation.
IOLTA (Interest on Lawyers’ Trust Account) regulations require you to keep client funds in separate trust accounts – not mixed with the firm’s operating bank accounts – to protect their money and prevent misuse.
To ensure compliance, billing solutions:
Track retainers and balances – monitor client trust account balances to ensure appropriate use of funds
Separate funds – automatically distinguish between client funds and operational revenue
Generate compliance reports – provide detailed records to meet audit and regulatory requirements
Attorney billing software helps law firms manage trust funds efficiently, protect their reputations and fully comply with legal requirements.
Key features to look for when choosing attorney invoicing software
When managing a busy caseload and striving to provide top-notch service to your clients, you need an invoicing system that truly supports your work.
Here are some core features to look for when choosing a billing solution for your law firm:
Time tracking | Tracks billable hours in real-time, ensuring accurate invoicing for every task. It’s useful for logging time spent on calls, meetings or research. Example: Record a 30-minute customer support or consultation call directly in the software for seamless invoicing. |
Automated invoicing | Generates and sends invoices automatically based on logged time and expenses. This feature saves time and ensures consistency. Example: Automatically send monthly invoices for ongoing retainer agreements with pre-filled details, such as the retainer balance and services performed. |
Expense management | Tracks case-related expenses and links them to client billing, preventing overlooked reimbursements. Example: Log court filing fees, expert witness costs or travel expenses directly into the client’s invoice for transparent billing. |
Trust accounting compliance (IOLTA compliance) | Manages client accounts according to legal regulations, helping you avoid compliance issues. Example: Use software that keeps client funds and operating revenue separate to comply with trust account rules. |
Payment processing | Accepts online payments via credit cards, ACH transfer or other methods to speed up payment collection. Example: Bill clients using an invoice with a “pay now” button for instant payment. |
Financial reporting and analytics | Provides insights and reports on billing trends, revenue and productivity to identify areas for improvement. Example: Analyze time spent on personal injury cases versus flat-fee cases. Adjust your hourly rate for more accurate profitability predictions. |
Integrations | Connects with third-party tools to create optimal workflows and processes in your law firm. Example: Sync time entries from Timely’s online booking system with your Pipedrive CRM to generate attorney services invoices using the QuickBooks integration. |
AI functionality | AI enhances decision-making by analyzing billing patterns, predicting client preferences and automating key tasks. Example: Use AI to identify clients who consistently make late payments. Then, adjust payment terms to ensure timely collection. |
Not every law firm requires the same functionality. For example, if you already use time-tracking software, you won’t need it as a native feature in your invoicing system.
Here’s how to determine what attorney billing features you need:
Start by assessing your firm’s current processes and tools
Identify pain points, such as inefficient billing workflows or missed billable time
Prioritize features that address these gaps and align with your firm’s size, client base and area of law
Involve your team in the decision-making process to ensure the chosen solution meets everyone’s needs
Follow these four steps to guide you toward a billing solution tailored to your law firm’s needs.
Final thoughts
Attorney invoicing software saves legal teams valuable time. Instead of manually creating and tracking invoices, legal professionals can spend time on their core responsibilities – like actually performing legal practices.
Law firms can enhance invoicing efforts by integrating solutions like Pipedrive into their processes. In addition to streamlining invoice generation, Pipedrive’s intuitive CRM allows law firms to track case interactions, automate follow-ups and use AI insights to improve the client experience.
Sign up for a free Pipedrive trial to boost your law practice’s productivity and cash flow.
