How do lawyers track billable hours?

Why accurate time tracking matters

For firms that bill by the hour, time is inventory. Time that is never recorded can never be billed, and entries reconstructed at the end of the week tend to be shorter and vaguer than the work actually performed. Accurate records also matter beyond revenue: they support fee petitions, justify invoices to clients, show how long types of work really take, and help set flat fees for future matters.

Even firms that bill flat fees or contingency fees benefit from tracking time. It reveals which matters are profitable and where workflows can be improved.

What a time entry contains

A complete time entry typically includes:

• Date the work was performed.
• Timekeeper: the attorney, paralegal or staff member.
• Client and matter the work relates to.
• Duration in the firm's billing increment.
• Description of the task.
• Rate and whether the entry is billable, non-billable or no-charge.
• Activity or task code, where the client requires codes such as UTBMS.

Billing increments: tenths and quarters

Most firms record time in tenths of an hour, where each 0.1 equals 6 minutes. Some use quarter hours (15 minutes). An activity lasting part of an increment is usually rounded up to the next increment. For example, a 4-minute email is 0.1 and a 20-minute call is 0.4 in tenths.

To calculate billable hours, divide minutes by the increment length, round up, and multiply by the increment value. Our billable hours chart does this instantly and prints a conversion table.

Check engagement letters and client billing guidelines: some clients restrict minimum charges for short tasks or prohibit certain types of entries.

Four ways to track billable hours

1. Contemporaneous timers

Start a timer when you begin a task and stop it when you finish. This is the most accurate method, particularly for long tasks like drafting or research. The risk is forgetting to stop or switch timers, so review entries daily.

2. Manual entries throughout the day

Record each task right after finishing it. This works well for short tasks such as calls and emails where a timer is impractical.

3. End-of-day reconstruction

Some lawyers reconstruct the day from their calendar, sent email and documents. This is better than end-of-week reconstruction but still tends to miss short tasks.

4. Capture from activity

Legal software can suggest entries from activity on a matter, such as documents edited, emails sent or events attended, so the timekeeper only reviews and confirms them. This reduces missed time but still requires review.

Writing good time entry descriptions

Clients read invoices closely. Good descriptions:

• Start with an action verb: draft, review, analyze, prepare, attend, confer.
• Name the specific document or subject: "Draft response to defendant's first request for production".
• Explain purpose when it is not obvious.
• Avoid vague terms like "work on file" or "attention to matter".
• Avoid block billing, where several tasks are combined under one time total, unless the client agrees. Courts and clients often scrutinize block-billed entries.

Common time tracking mistakes

• Waiting until the end of the week. Memory fades quickly; short tasks disappear.
• Not recording short tasks. Several six-minute calls and emails a day add up across a year.
• Recording time to the wrong matter. This creates billing errors and confidentiality risks.
• Inconsistent increments. Mixing tenths and quarters in one firm causes confusion.
• No review before billing. Unreviewed entries lead to write-offs and client disputes.
• Ignoring non-billable time. Tracking it shows where time goes and helps planning.

A daily time tracking routine

1. Open your time tracker at the start of the day.
2. Start a timer for each focused task, switching when you change matters.
3. Record calls and emails immediately after they end.
4. Before leaving, compare your entries against your calendar and sent mail.
5. Fix descriptions and matter assignments while the day is fresh.
6. Each week, review unbilled time per matter.

Spreadsheet vs. a billable hours tracker

A spreadsheet or billable hours template is fine for a solo lawyer with a few matters. As matters grow, spreadsheets make it hard to apply rates, avoid double entry and produce invoices. Legal time tracking software ties every entry to a matter, applies rates automatically, keeps unbilled time visible and converts entries into invoices.

From hours to invoices

Recorded time only matters if it becomes a clear invoice. At the end of each billing period, review unbilled entries per matter, adjust or write down where appropriate, add expenses, apply any trust funds and send the invoice. See how lawyers get paid and our free legal invoice template.

Tracking time for paralegals and staff

Billable time is not only attorney time. Paralegal and legal assistant work, such as preparing exhibits, organizing discovery, drafting routine correspondence and summarizing records, is often billable at a separate rate when the engagement agreement allows it. Make sure every timekeeper uses the same increments and description standards, and that staff can record time directly on the matter rather than passing notes to an attorney. Reviewing staff entries alongside attorney entries before billing helps catch duplicate work and makes invoices consistent.

Measuring what you track

Once time is recorded consistently, it becomes useful management data. Compare hours recorded with hours billed and hours collected for each timekeeper. The gaps show where time is written down, written off or never collected. Look at which matter types take longer than the fee assumes and adjust pricing, staffing or templates accordingly.

Tracking time in EvidenceDesk

EvidenceDesk time tracking lets timekeepers start a timer from any matter, record manual entries in tenths or quarters, add task codes and see unbilled time per matter. Approved entries flow into invoices, and trust funds can be applied with a recorded transfer to operating.