Everhour connects legal time, rates, and billing records, while law-firm invoices still need matter-level precision.
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A law-firm invoice should identify the client, matter, invoice date, invoice number, billing period, fee basis, payment terms, and remittance details. For hourly work, include the lawyer or staff member, date, task description, time spent, rate, and amount. For fixed-fee or milestone work, state the agreed phase or deliverable instead of forcing time entries into the invoice.
The invoice also needs to match the engagement terms. ABA Model Rule 1.5 requires lawyers to communicate the scope of representation and the basis or rate of fees and client-responsible expenses, preferably in writing, before or within a reasonable time after representation begins. The invoice should reflect that agreed fee structure and avoid charges that are unreasonable under the rule's factors.
Legal invoices commonly combine professional fees, filing fees, travel, research charges, courier costs, and other client-responsible expenses. Each expense line should identify the matter connection and whether the firm paid it directly or expects reimbursement. Litigation costs and expenses may be advanced, with repayment contingent on the matter outcome, subject to the professional-conduct limits on financial assistance.
Advance legal fees and expenses require special handling. Client advances must be deposited into a client trust account and withdrawn only as fees are earned or expenses are incurred. An invoice should distinguish earned fees from trust-account activity, especially when applying a retainer balance. Complete client-account records must be preserved for five years after representation ends under ABA Model Rule 1.15.
Billing narratives can reveal information relating to representation, so law firms need descriptions that support payment without unnecessary disclosure. A line such as "Draft motion to compel, 1.8 hours" often works better than a detailed strategy summary. Client portals, emailed PDFs, and exports should be handled with reasonable safeguards against inadvertent or unauthorized access.
Corporate legal departments may require e-billing instead of a standard PDF. LEDES 1998B uses 24 pipe-delimited ASCII fields and is widely used in U.S. legal e-billing. UTBMS codes classify the task, activity, and expense behind each entry. A firm that serves insurance, enterprise, or panel clients should confirm the required format before finalizing invoice lines.
A one-off invoice tool works for a simple fixed-fee matter, a solo lawyer billing one client, or a corrected invoice that needs a clean PDF. It is enough when the source records already exist, the trust balance is clear, and the client does not require LEDES, UTBMS, or detailed timekeeper reporting.
A managed workflow becomes necessary when several timekeepers bill different rates, one matter uses project overrides, or the firm needs dated rate history. Everhour separates internal cost rates from client-facing billable rates, supports per-person defaults and per-project overrides, and can price billable work by project, member, or task before the invoice is prepared.
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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A law firm invoice should include the client, matter, invoice number, invoice date, billing period, fee basis, payment terms, remittance details, and itemized fees or expenses. Hourly invoices should show timekeeper, date, work description, time spent, rate, and amount. Fixed-fee invoices should name the agreed scope or phase.
A legal invoice should distinguish fees earned from funds still held in trust. Advance legal fees and expenses belong in a client trust account until earned or incurred, then the invoice or statement should show the application of those funds. The firm should keep complete client-account records for five years after the representation ends.
The United States has no national VAT or GST invoice regime. Sales and use tax obligations come from state and local rules, and service taxability varies by state and service type. A law firm should apply the tax treatment required for the jurisdiction, service, client, and transaction rather than using one national invoice tax rule.
Legal invoices should include enough detail for client review and payment approval, but the narrative should protect information relating to representation. Overly specific strategy notes create confidentiality risk. Clear matter-based descriptions, time spent, and task purpose usually provide better support than broad labels or excessive detail.
Law firms need LEDES or UTBMS billing when the client requires legal e-billing, commonly for corporate, insurance, or panel counsel work. LEDES 1998B uses 24 pipe-delimited fields, while UTBMS codes identify task, activity, and expense categories. The engagement or billing guidelines should control the required format.
Everhour separates cost and billable rates so a firm can track internal labor cost apart from client charges. It supports per-person default rates, per-project overrides, dated rate changes, and project, member, or custom task rates for matters that need different billing treatment.
Everhour can generate invoices from uninvoiced billable time and expenses, with line items grouped by project, task, person, date, or other available breakdowns. After time is included in an invoice, Everhour marks it as invoiced so the same hours do not appear again on a later invoice.
Track matter time with dated rates, project overrides, and billable status in Everhour, then turn approved billing records into invoices with fewer manual edits.
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