billing-operations

name

billing-operations

description

Legal billing and law firm operations skill for time tracking, invoicing, and financial management. Use when the user needs assistance with timekeeping, invoice review, billing guidelines, LEDES format, outside counsel management, or legal spend analysis. Triggers on keywords like "billing", "invoice", "timekeeping", "LEDES", "billing guidelines", "legal spend", "outside counsel", "time entry", "fee arrangement", "legal operations".

Billing & Operations

This skill provides expert guidance for legal billing, timekeeping, and law firm financial operations.

Core Capabilities

1. Time Management

• Time entry best practices
• Contemporaneous recording
• Task-based billing
• UTBMS codes

2. Invoice Management

• Invoice preparation
• Bill review
• LEDES compliance
• E-billing submission

3. Budget Management

• Matter budgets
• Fee estimates
• Variance tracking
• Cost controls

4. Legal Operations

• Outside counsel management
• Billing guidelines
• Spend analytics
• Performance metrics

Time Entry Best Practices

Quality Time Entry Elements

EFFECTIVE TIME ENTRY FORMAT

Date: [Date]
Timekeeper: [Name]
Matter: [Number]
Time: [Increments per policy]
Task Code: [UTBMS if required]
Activity Code: [UTBMS if required]

Description:
[Action verb] + [specific subject] + [purpose/outcome]

EXAMPLE:
"Drafted motion to compel discovery responses re: defendant's
production deficiencies; analyzed applicable rules and case law
supporting our position."

NOT:
"Worked on motion" (too vague)
"Research and drafting" (no context)

Common Time Entry Errors

Error	Problem	Correction
Block billing	Combined tasks without breakdown	Separate each task
Vague descriptions	No meaningful detail	Specific subject/purpose
Administrative tasks	Non-billable billed	Remove or adjust
Excessive research	Unbounded research time	Cap and explain
Travel time	Billed at full rate	Reduce rate or exclude
Internal conferences	Multiple timekeepers	Limit attendees

UTBMS Task Codes (Common)

Code	Description
L110	Fact Investigation/Development
L120	Analysis/Strategy
L130	Experts/Consultants
L140	Document Preparation (Non-Discovery)
L150	Document Review
L160	Court Filing Preparation/Review
L190	Other Litigation Tasks
L210	Pleadings
L220	Discovery
L230	Discovery/Trial Motions
L310	Witness Interviews
L320	Deposition
L330	Jury Consulting
L340	Trial Prep/Trial
L350	ADR
L410	Settlement/Negotiation
L510	Appeal

UTBMS Activity Codes (Common)

Code	Description
A101	Plan and prepare for
A102	Research
A103	Draft/revise
A104	Review/analyze
A105	Communicate (within legal team)
A106	Communicate (with client)
A107	Communicate (other outside counsel)
A108	Communicate (other external)
A109	Appear for/attend
A110	Manage data/files/documents
A111	Other

Invoice Preparation

Invoice Checklist

• Matter information correct
• Billing period clear
• Time entries reviewed for quality
• Descriptions comply with guidelines
• Block billing eliminated
• Rates correct
• Expenses documented
• Discounts applied
• LEDES format (if required)
• Budget status included
• Prior balance shown
• Payment terms stated

Invoice Format

[FIRM LETTERHEAD]

INVOICE

Invoice Number: [Number]
Invoice Date: [Date]
Due Date: [Date]

Bill To:
[Client Name]
[Address]

Matter: [Number] - [Description]
Billing Period: [Start] - [End]

─────────────────────────────────────────────────────
PROFESSIONAL FEES
─────────────────────────────────────────────────────

[Date] [Timekeeper] [Hours] [Rate] [Amount]
       [Description of services]

[Continue for all entries...]

       Subtotal Professional Fees:    $[X]
       [Discount, if any]:           -$[X]
       Total Professional Fees:       $[X]

─────────────────────────────────────────────────────
DISBURSEMENTS
─────────────────────────────────────────────────────

[Date] [Description]                  $[X]

       Total Disbursements:           $[X]

─────────────────────────────────────────────────────

CURRENT CHARGES:                      $[X]
PRIOR BALANCE:                        $[X]
TOTAL DUE:                            $[X]

Payment Terms: Net 30 days

LEDES Format

LEDES 1998B Structure

Line 1: Header row with field names
Line 2+: Data rows

Fields (pipe-delimited):
INVOICE_DATE|INVOICE_NUMBER|CLIENT_ID|LAW_FIRM_MATTER_ID|
INVOICE_TOTAL|BILLING_START_DATE|BILLING_END_DATE|
INVOICE_DESCRIPTION|LINE_ITEM_NUMBER|EXP/FEE/INV_ADJ_TYPE|
LINE_ITEM_NUMBER_OF_UNITS|LINE_ITEM_ADJUSTMENT_AMOUNT|
LINE_ITEM_TOTAL|LINE_ITEM_DATE|LINE_ITEM_TASK_CODE|
LINE_ITEM_EXPENSE_CODE|LINE_ITEM_ACTIVITY_CODE|
TIMEKEEPER_ID|LINE_ITEM_DESCRIPTION|LAW_FIRM_ID|
LINE_ITEM_UNIT_COST|TIMEKEEPER_NAME|TIMEKEEPER_CLASSIFICATION|
CLIENT_MATTER_ID

LEDES Expense Codes (Common)

Code	Description
E101	Copying/Reproduction
E102	Outside Printing
E103	Word Processing
E104	Facsimile
E105	Telephone
E106	Online Research
E107	Delivery/Messenger
E108	Postage
E109	Local Travel
E110	Out-of-Town Travel
E111	Meals
E112	Court Fees
E113	Subpoena Fees
E114	Witness Fees
E115	Deposition Transcripts
E116	Trial Transcripts
E117	Trial Exhibits
E118	Litigation Support
E119	Experts
E120	Private Investigators
E121	Arbitrators/Mediators

Billing Guidelines

Common Billing Guidelines Requirements

OUTSIDE COUNSEL BILLING GUIDELINES

1. STAFFING
   - Identify lead attorney
   - Limit number of attorneys
   - No training on client matters
   - Prior approval for additional timekeepers

2. RATES
   - Approved rate schedule
   - Annual rate increases capped
   - Blended rates for certain work
   - Alternative fee arrangements

3. ACTIVITIES
   - Prior approval thresholds
   - Limit internal conferences
   - Travel time at reduced rate
   - No administrative tasks

4. EXPENSES
   - Pre-approval for >$[threshold]
   - Reasonable and necessary only
   - No overhead expenses
   - Itemization required

5. INVOICING
   - Monthly submission required
   - LEDES format mandatory
   - Task/activity codes required
   - 90-day submission deadline

6. REPORTING
   - Monthly status reports
   - Budget-to-actual tracking
   - Matter assessments
   - Accrual estimates

Approval Thresholds (Sample)

Activity	Threshold
Engage expert	$10,000
Retain local counsel	$5,000
Single deposition	$15,000
Motion/brief	$25,000
Settlement authority	Per matter
Appeal	Requires approval
Travel	$2,500

Budget Management

Matter Budget Template

MATTER BUDGET

Matter: [Number/Description]
Budget Period: [Dates]
Prepared by: [Name]
Approved by: [Name]
Date: [Date]

PHASE BUDGET BREAKDOWN

Phase                    Hours    Fees        Expenses    Total
──────────────────────────────────────────────────────────────
1. Case Assessment         25     $12,500        $500    $13,000
2. Pleadings              50     $25,000      $1,000    $26,000
3. Discovery             200    $100,000     $30,000   $130,000
4. Depositions           100     $50,000     $25,000    $75,000
5. Motions                75     $37,500      $2,000    $39,500
6. Trial Prep            150     $75,000     $15,000    $90,000
7. Trial                 100     $50,000     $10,000    $60,000
──────────────────────────────────────────────────────────────
TOTAL                    700    $350,000     $83,500   $433,500

ASSUMPTIONS
- [Key assumption 1]
- [Key assumption 2]

CONTINGENCIES
- [Item]: +$[X]
- [Item]: +$[X]

BUDGET RANGE
Low:  $375,000
Mid:  $433,500
High: $525,000

Budget Variance Reporting

BUDGET VARIANCE REPORT

Matter: [Number]
Period: [Dates]
As of: [Date]

                    Budget      Actual      Variance    %
────────────────────────────────────────────────────────────
Fees               $100,000    $115,000    -$15,000   -15%
Expenses            $25,000     $22,000     +$3,000   +12%
TOTAL              $125,000    $137,000    -$12,000   -10%

EXPLANATION OF VARIANCES
[Description of why actual differs from budget]

FORECAST TO COMPLETION
Remaining budget: $[X]
Estimated to complete: $[X]
Projected variance: $[X]

RECOMMENDATIONS
[Actions to address variance]

Legal Spend Analytics

Key Metrics

Metric	Calculation	Target
Realization rate	Collected / Billed	>95%
Write-off rate	Write-offs / Billed	<5%
Collection period	Days to payment	<45 days
Budget accuracy	Actual vs. Budget	±10%
Cycle time	Matter open to close	Declining
Cost per matter	Total spend / matters	Varies

Spend Analysis Categories

LEGAL SPEND ANALYSIS

Period: [Dates]
Total Spend: $[X]

BY MATTER TYPE
─────────────────────────
Litigation        40%
Transactions      25%
Regulatory        15%
Employment        10%
IP                10%

BY FIRM
─────────────────────────
Firm A            35%
Firm B            25%
Firm C            20%
Other             20%

BY PHASE (LITIGATION)
─────────────────────────
Discovery         45%
Depositions       20%
Motions           15%
Trial             10%
Other             10%

Alternative Fee Arrangements

AFA Types

Type	Structure	Best For
Fixed fee	Set amount for scope	Predictable matters
Capped fee	Maximum total	Risk sharing
Success fee	Bonus for outcome	Aligned incentives
Holdback	% withheld pending outcome	Performance
Blended rate	Single rate all timekeepers	Simplified billing
Volume discount	Reduced rates for volume	Ongoing relationships
Collar	Shared savings/overruns	Balanced risk

AFA Considerations

• Clear scope definition
• Change order process
• Assumptions documented
• Out-of-scope defined
• Success metrics established
• Payment milestones
• True-up provisions

Integration with Other Skills

• client-intake: Fee arrangements
• case-management: Matter tracking
• legal-analytics: Cost analysis
• compliance-tracking: Billing compliance
• e-discovery: Vendor cost management

Reference Files

For detailed guidance:

• references/ledes-format.md - LEDES specification
• references/utbms-codes.md - Complete UTBMS code list
• references/budget-templates.md - Budget format examples