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There are a quite a few terms, calculations and definitions specifically related to Law Firms that vary between Law Firms. We outline how we have defined them below and know that we will adjust where necessary to match your firm's needs
A Partner, Associate, Legal Assistant who enters their time that is billed to the client.
An Attorney who is responsible for billing and collection of the time entered for a client.
Hours input by a timekeeper that can be billed back to a client
Hours input by a timekeeper for Pro Bono work, Continuing Legal Education (CLE) and other tasks that cannot be billed to a client
The number of billable and non-billable hours worked divided by an 8-hour workday. If an attorney enters 8 hours in a workday, then their timekeeper utilization is 100%.
The number of billable hours worked divided by an 8-hour workday. If an attorney enters 10 billable hours in a workday, then their billing utilization is 125%. Utilization rates for a month add the number of billable hours worked in a month divided by the number workdays multiplied by 8 in the month.
The number of hours input by a timekeeper multiplied by their Billing Rate
Any amount written off prior to billing the client
The amount billed to the client after discounts are subtracted from the billable amount.
The amount billed divided by the billable amount. If the Billable Amount is $500 and a discount of $100 is given by the Billing Attorney then Billed Amount is $400 making the calculation for Billing Realization $400 divided by $500 equals an 80% Billing Realization
Amount discounted after billing the client
The Amount of cash collected divided by the original amount billed. If a client is billed $400 and the client pays $300 with the remaining $100 written off then the calculation for Cash Realization is the $300 cash collected divided by the $400 billing making the cash realization equal 75%
A true cost incurred and paid to a vendor on behalf of the client and billed back to them. An example would be Court Filing Fees or an Expert Witness Fee.
A law firm cost not paid to a vendor but still billed back to the client. An example of this would be Word Processing costs.
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