The New York State Bar Association’s Committee on Law Practice Management held a continuing legal education course on Mar. 20 focused on billing practices, time tracking, and trust account management for attorneys.
The session addressed the risks lawyers face from improper billing or mishandling client funds, emphasizing that such mistakes can jeopardize a lawyer’s license. Over 200 lawyers attended the event, which was led by Jordan Turk, a legal technology adviser and family law attorney from Texas.
Turk advised attorneys to be practical and organized in their billing procedures. “Be practical and organized in your billing. A client should not have to wait months to receive an invoice,” she said. She recommended sending bills regularly near the beginning of each month and aligning them with clients’ paydays when possible. Payment should be due upon receipt, Turk said, adding that all fee arrangements and billing processes should be discussed during the initial client consultation. “Discuss all fee arrangements and lay out the billing process up front. Use credit cards and online payments to your advantage by adding a link to your payment portal to your email signature block. This way clients will know how to pay you,” she said.
Turk also highlighted the importance of proper trust account management for New York attorneys, who are required to act as fiduciaries for client funds. She warned against comingling funds or failing to move earned fees from escrow accounts into operational accounts, noting that such actions could result in violations. “Practice three-way reconciliation of your accounts to save you from a costly mistake which can impact your bar card. A check and balance system will protect both you and your client,” she said.
On time tracking, Turk pointed out that not recording billable hours can lead to significant lost revenue: “Studies have shown that if you are not tracking your time, you are losing up to 12 hours a month,” she said. She shared her own experiences with firm policies designed to encourage timely submission of hours, including incentives like gift cards for paralegals who meet deadlines.
Turk cautioned against padding time entries on invoices: “It will lead to more questions from clients and judges. Fairness and transparency are important in invoices and will give an added layer of defense should there be any dispute.” The course is available for viewing on demand.
As an additional resource, New York State Bar Association members now receive free access to Smokeball Bill software as part of their membership benefits. The software offers tools for three-way reconciliation, invoicing, and matter-based time tracking aimed at helping small law firms reduce manual tasks.
