Legal Time-Tracking Software: Top Tools & Best Practices

Manual time tracking can create challenges for law firms. It's not only prone to errors, but can also lead to inaccurate billing and missed revenue opportunities. Additionally, it can be difficult to recall days or weeks of work—resulting in valuable time recalling inconsistent time entries. Legal time-tracking software can help by automating the process, streamlining billing, and improving overall productivity.

In this article, we’ll highlight the pros and cons of different time-tracking methods, the benefits of legal time-tracking software, and the best time-tracking options currently in the market. 

Why is Time Tracking Important for Law Firms?

Time tracking is a cornerstone of efficient legal practice. Accurate time records ensure that resources are being allocated accuratley to different cases, while also providing valuable insights into firm profitability. Tracking time also allows law firms to enhance billing accuracy, optimize resource allocation, improve client satisfaction, gain valuable insights, and support better decision-making.

How Do Lawyers Track Time and Billable Hours?

Lawyers use a variety of methods to track time and billable hours to ensure accurate invoices. Each method comes with its own benefits and challenges, and the choice of method often depends on the size and structure of the law firm, as well as the technology available. Here are some common approaches:

1. Manual time logs: Many lawyers still rely on the traditional method of manually logging their time on paper or using notebooks. While simple and familiar, this method can easily lead to mistakes, as it requires recalling time spent on different tasks throughout the day. Lawyers might forget to record time accurately or miss small increments—leading to revenue loss over time. Moreover, manual logs require additional effort to transfer time entries into a billing system—increasing the risk of human error.
2. Excel spreadsheets: A slightly more modern variation involves entering time into Excel spreadsheets. Lawyers manually input their hours, often using formulas to calculate the total time spent on cases. While this offers a structured way to track time, it still lacks automation. Errors may occur when inputting data and managing multiple cases and clients within a spreadsheet, which can become overwhelming as you grow your firm. Furthermore, Excel offers no built-in features to automatically track time, meaning it still relies on manual data entry.
3. Physical timers or apps: Many lawyers turn to physical timers or app-based timers to help track time as they work on tasks. This method helps provide a real-time snapshot of how long specific tasks take. However, timers require the lawyer to manually start and stop the clock, which can be easy to forget in the middle of a busy day. Additionally, switching between different tasks and clients requires stopping one timer and starting another, which can disrupt workflows and lead to under-recording time.
4. Legal time-tracking software: Legal time-tracking software is increasingly becoming the most efficient method for managing billable hours. These tools are designed specifically for law firms, automating the tracking process and reducing human error. 

What is Legal Time-Tracking Software?

Legal time-tracking software is built so that law firms can easily track and capture billable hours. It offers features like automated time capture, project management tools, and detailed billing features. Unlike general tools, legal time tracking integrates seamlessly with case management systems, efficiently keeping track of tasks and hours.

By centralizing time tracking within the firm’s management software, your firm can streamline billing processes and improve client satisfaction. With added options like automated invoicing, calendar integration, and task tracking, legal time-tracking software ensures every hour is accounted for—driving overall efficiency.

Top Time-Tracking Software Options for Law Firms

Tracking billable hours efficiently is essential for law firms of all sizes, and choosing the right software can make a significant difference. Below are some of the top legal time-tracking software options, tailored to meet the needs of different types of law firms.

MyCase – Best for Most Law Firms

MyCase offers an efficient solution for tracking time with billable hours. With features like Smart Time Finder, it automatically captures missed billable activities—ensuring more accurate billing. It also integrates tracked entries with invoices—simplifying the process of managing billable hours, and tasks, and improving lawyer-client communication. MyCase also supports document management, which makes this solution a solid option for firms looking to handle all aspects of their practice in one platform.

CASEpeer – Best for Personal Injury Law Firms

CASEpeer stands out for personal injury firms, with specialized tools like medical treatment tracking and built-in communication features. It allows personal injury attorneys to manage their cases efficiently while keeping track of billable hours. With seamless integration to QuickBooks and a secure client portal, CASEpeer also helps improve law firm client management and productivity.

Docketwise – Best for Immigration Lawyers

Docketwise focuses on immigration law, providing real-time time tracking alongside case management. It allows attorneys to log hours manually or automatically, ensuring all billable time is captured. By integrating time entries into invoices, Docketwise simplifies billing and helps immigration lawyers focus on their cases without worrying about missing billable work.

LawPay – Best for Firms Needing Only Billing Integration

LawPay is a payment solution trusted by many law firms. It integrates with platforms like MyCase to track time, manage billing, and process payments. Features include recurring payments, legal fee financing, and text-to-pay options. LawPay is especially valuable for firms needing compliance with trust accounts and seamless billing processes, making it easier to remain in compliance.

Other Time-Tracking Tools

General time-tracking tools like Timenotes, Hubstaff, Gusto, and TimeDoctor may offer basic features for tracking hours and managing productivity, but they fall short when it comes to the specialized needs of law firms. These platforms are designed for broader industries and lack integration with legal-specific functionality, such as streamlined case management, detailed billing reports, and team scheduling. While they may seem like viable options, relying on these tools can create inefficiencies and miss critical aspects of legal workflow management. Law firms are better served by using time-tracking software tailored specifically for the legal industry, ensuring compliance and efficiency.

Considerations When Choosing Legal Time-Tracking Software

When selecting the right legal time-tracking software, it’s essential to ensure the platform fits your firm’s needs.  First, integration benefits are necessary to ensure a smooth transition. Proper legal time-tracking management software should integrate with your existing billing systems and document management tools.

Strong security features are also crucial for safeguarding sensitive client data. Attorney time-tracking software should offer encryption, role-based access controls, and audit trails—ensuring compliance with legal standards and protecting client confidentiality.

Finally, testing the software through free trials or demos is a critical step. With free trial runs, you can assess whether the lawyer time tracking tool is user-friendly and fits seamlessly into your daily operations. These trials also allow your team to evaluate whether the software improves the efficiency of lawyer time tracking and overall practice management. 

Best Practices for Effective Legal Time Tracking

Start by setting clear billing practices. This involves defining billable tasks upfront and ensuring that all lawyers and staff are aware of what activities are considered billable. By doing this, your firm can avoid confusion and ensure accuracy in invoicing.

Encouraging consistent time entry is also important. Lawyers should be prompted to log their time as soon as tasks are completed. This reduces the risk of forgetting time spent on cases and ensures that the time is tracked as the task happens (or shortly after). Delayed entries can lead to lost billable hours or inaccuracies in billing—affecting revenue.

Next, it’s important to leverage automation in your legal time-tracking software. Automation features—such as timers, automatic activity capture, and calendar integration eliminate the need for manual logging. As a result, your firm will have more time for client-related tasks.

Finally, regularly reviewing and analyzing data generated by your time tracking system allows you to identify inefficiencies and improve both time management and billing accuracy. Reports generated by the software provide insights into how time is being spent, helping firms optimize their resources and improve profitability.

CASEpeer Time Tracking Software Helps Personal Injury Law Firms

Using legal time-tracking software offers significant advantages, including improved billing accuracy, better resource allocation, and increased profitability. By following these best practices, your firm can enhance both productivity and profitability.

Research the legal time-tracking software that fits your firm's unique needs. Explore various options, take advantage of free trials, and make sure the software you choose integrates well with your existing systems.

If you represent a personal injury firm, try CASEpeer today with a free demo and experience its time-tracking features firsthand.