Lawyer billing turns recorded matter time into client fees, and Everhour keeps those hours tied to work records.
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For lawyers, the basic question is how much recorded matter time is worth at the agreed billing rate. Hourly billing uses a set amount for each hour the lawyer works on the matter, so the core output is gross billable value before write-downs, collections, expenses, and any state or local tax treatment.
The same calculation also helps compare actual work against a law-firm billable target. Private-firm stated targets commonly range from 1,700 to 2,300 annual hours, while attorney well-being recommendations from the New York State Bar Association call for caps no higher than 1,800 hours for billable hours and bonus availability.
Use this formula: billable amount = approved lawyer time × agreed hourly rate. For mixed staffing, calculate each timekeeper separately, then add the results. If a matter has 13 approved partner hours at $425 per hour and 29 approved associate hours at $275 per hour, the pre-tax billable value is $13,500.
That total is not the same as cash collected. Write-downs, billed realization, and collection reduce worked-rate value. Thomson Reuters reported collected realization at 90.3% in the 2026 State of the U.S. Legal Market, so a $13,500 worked-rate value would produce $12,190.50 collected at that realization level.
The billing increment changes the answer when time is recorded in minutes. ABA Formal Opinion 93-379 permits hourly lawyers to round to minimum time periods such as 0.25 hour or 0.1 hour, but they may not bill more time than actually spent except for that rounding. The increment must match the fee basis communicated to the client.
The common mistake is mixing raw timer minutes, rounded entries, and invoice totals without a clear sequence. Convert each entry according to the agreed increment first, review whether the work is billable to the matter, then apply the rate. Do not round the final invoice total as a substitute for entry-level billing rules.
A one-off calculation is enough when you have a short matter, one lawyer, one rate, and already-approved time. It answers the invoice math quickly, especially before tax, expense, or collection adjustments. U.S. billed professional time has no federal VAT/GST, so any tax input must come from the applicable state or local rule when the service is taxable.
A managed workflow becomes necessary when multiple lawyers, matters, billing increments, and invoice approvals are involved. Everhour can embed tracking controls inside supported project tools, sync project and task metadata, expose timesheets and budgets inside work tools, and connect the approved billing handoff to accounting workflows such as QuickBooks Online, Xero, or FreshBooks.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
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The basic formula is approved lawyer time multiplied by the agreed hourly rate. Calculate each lawyer, rate, or matter phase separately when rates differ, then add the line totals. The result is gross billable value before write-downs, realization, collection, expenses, and any state or local tax input.
Use the billing increment communicated in the fee arrangement, such as 0.1 hour or 0.25 hour. ABA guidance allows rounding to minimum time periods such as one-tenth or one-quarter hour, but hourly lawyers may not bill more than the time actually spent except for that permitted rounding.
Annual targets do not change the invoice formula, but they change how you interpret the hours. A lawyer with a 1,900-hour annual target needs an average of 158.33 billable hours per month over 12 months. The target comparison should use billable hours, not total office hours.
No. The United States has no federal VAT/GST or national sales-tax rate for billed professional time. Tax treatment is state and local, and some services may not be taxed. Use a jurisdiction-specific tax input when the legal service is taxable in that location.
Use realization after calculating worked-rate value. First multiply approved time by the agreed rate, then apply write-downs, billed realization, and collection assumptions. This keeps the invoice basis separate from the amount ultimately collected, which is essential for matter profitability and attorney performance reporting.
Everhour integrates with major project management and accounting tools, with tracking controls available inside supported workflows and through the browser extension. Legal teams can track time against the work structure they already use, then keep project and task metadata attached to the billing record.
Everhour Billing & Invoicing turns tracked billable time and expenses into invoices, excluding non-billable work and calculating amounts from rates and time. Invoices can be exported to QuickBooks Online, Xero, or FreshBooks, with invoice status synced back into Everhour.
Track approved matter hours where work happens, keep billing context attached, and send clean invoice data forward. Everhour connects embedded tracking to accounting handoff for legal billing.
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