How to Track Billable Hours: A Guide for Attorneys

Attorneys who wait until end of day to record time lose 10-15% of billable hours. Wait until end of week and that jumps to 25%. Poor time tracking costs the average attorney $20,000-$40,000 per year in lost revenue. This guide covers the methods that actually work.

Why Time Tracking Matters

According to Clio's Legal Trends Report, lawyers spend only 2.9 hours per day on billable work. With utilization rates averaging 37%, every missed entry compounds the revenue loss.

The math is simple: a lawyer billing $400/hour who loses just 30 minutes daily to poor tracking loses $52,000 annually. For a 10-attorney firm using inconsistent tracking methods, that reaches $240,000+ per year.

Beyond revenue, accurate time records:

• Protect against fee disputes
• Support malpractice defense
• Provide data for firm management decisions
• Meet e-billing compliance requirements

The Six-Minute Rule

Most attorneys bill in six-minute increments (one-tenth of an hour). This is the ABA-recommended standard.

Some firms use 15-minute billing, but this typically rounds up in the firm's favor and increases client disputes.

Time Tracking Methods Compared

Method 1: Manual End-of-Day Entry

How it works: Reconstruct your day from memory, calendar, and email at day's end.

Pros:

• No tools required
• No workflow disruption during work

Cons:

• Loses 10-15% of billable time (ABA data)
• Inaccurate duration estimates
• Vague descriptions due to forgotten details
• Vulnerable to fee challenges

Best for: Attorneys who truly cannot change their workflow (though this is rare).

Method 2: Contemporaneous Manual Entry

How it works: Log each task immediately after completing it.

Pros:

• Accurate descriptions
• Correct duration capture
• Meets best practice standards

Cons:

• Interrupts workflow
• Requires discipline
• Easy to forget during busy periods

Best for: Attorneys willing to build the habit.

Method 3: Desktop Timers

How it works: Start a timer when beginning a task, stop when done. Enter description manually.

Pros:

• Accurate duration tracking
• Low friction to start
• Many free options available

Cons:

• Must remember to start timer
• Must remember to stop timer
• Task switching creates complexity
• Still requires manual descriptions

Best for: Attorneys working on longer, focused tasks.

Method 4: Mobile Time Tracking

How it works: Log time from smartphone apps, often with voice input.

Pros:

• Track time anywhere (court, depositions, client meetings)
• Voice entry faster than typing
• Syncs with billing software

Cons:

• Requires phone access during work
• App switching adds friction
• Same memory limitations as other manual methods

Best for: Attorneys frequently away from their desk.

Method 5: Calendar-Based Tracking

How it works: Treat your calendar as your timesheet. Each appointment becomes a time entry.

Pros:

• Leverages existing workflow
• Good for meeting-heavy schedules
• Appointments have built-in descriptions

Cons:

• Misses non-calendar work (email, research, calls)
• Overestimates scheduled vs. actual meeting time
• Requires manual adjustment for ad hoc work

Best for: Attorneys whose day consists mostly of scheduled meetings and appearances.

Method 6: Automatic Time Capture

How it works: Software runs in background, tracking activity across applications. AI identifies billable work and generates entries.

Pros:

• Captures everything without effort
• No timers to remember
• No behavior change required
• Catches forgotten billable work
• Accurate to the minute

Cons:

• Requires comfort with screen activity capture
• Initial setup for matter recognition
• Higher cost than basic timers

Best for: Attorneys who forget to track, work on many matters, or want to maximize capture without changing habits.

Best Practices for Any Method

Track in Real Time

The data is clear: delayed entry loses revenue. Whatever method you use, enter time as close to the work as possible.

Write Specific Descriptions

Weak: "Research" Strong: "Research California statute of limitations for breach of contract claims"

Weak: "Client call" Strong: "Call with J. Smith regarding settlement offer, discussed counterproposal terms"

Specific descriptions protect against fee disputes and help you remember matter context months later.

Separate Administrative Time

Distinguish billable from non-billable work. Not everything is chargeable:

• General firm administration
• Business development
• CLE attendance (unless client-specific)
• Internal meetings unrelated to client work

Some tasks are judgment calls. Document review requiring legal analysis differs from filing. Use reasonable discretion.

Review Before Billing

Build in a review step before invoices go out. Check for:

• Missing entries (gaps in your day)
• Duplicate entries
• Entries on wrong matters
• Description clarity
• UTBMS code accuracy (if required)

Handle Task Switching

Attorneys average 7+ matters per day. Task switching creates tracking challenges.

Options:

• Multiple concurrent timers (if your software supports it)
• Brief notes when switching ("pause Smith, start Jones")
• Automatic tracking that captures switches

The worst approach: trying to remember everything at day's end.

Common Time Tracking Mistakes

Batching Small Tasks

That quick email? Track it. That two-minute call? Track it. Small tasks add up. Ten 6-minute tasks per day equals an hour of potentially lost billing.

Underestimating Time

Attorneys tend to underestimate time spent on tasks, especially when entering retroactively. When in doubt, trust your timer over your memory.

Block Billing

Combining multiple tasks into single entries ("Review documents, draft response, call with counsel - 4.0 hours") invites challenges. Many clients explicitly prohibit block billing. Break entries into component tasks.

Not Tracking Non-Billable Time

Even if you can't bill it, track it. Non-billable time data helps you:

• Identify efficiency opportunities
• Support staffing decisions
• Understand true matter costs
• Justify rate increases

Forgetting Travel Time

Check your engagement letter for travel billing terms. Many agreements allow billing for travel, sometimes at reduced rates. Track it separately.

Time Tracking Software Options

Basic Timer Apps (Free-$15/month)

• Toggl Track
• Clockify
• Harvest

Good for simple time capture. Limited legal-specific features.

Legal Practice Management ($39-$149/user/month)

• Clio
• MyCase
• PracticePanther
• Rocket Matter

Full practice management with built-in timers. Integrates billing, calendaring, and matter management.

Automatic Time Capture ($44-$100/user/month)

• Smokeball (bundled with practice management)
• Timely (general, not legal-specific)
• ReadyDone (legal-focused, standalone)

Captures time automatically from screen activity. AI categorizes work and suggests entries.

How Much Time Should You Track?

Most firms expect attorneys to bill 1,700-2,300 hours annually. That breaks down to:

Given lawyers work 9+ hour days on average, hitting these targets requires capturing most of your working hours as billable. The gap between hours worked and hours billed represents either non-billable work or lost time.

Improving Your Capture Rate

Start with Awareness

Track all your time for one week, billable and non-billable. See where your hours go. Most attorneys are surprised by how much billable work goes untracked.

Identify Your Leakage Points

Common sources of lost time:

• Quick emails between other tasks
• Phone calls not logged
• Research that spans multiple matters
• Administrative tasks that could be billable
• Work done outside normal hours

Build Systems, Not Willpower

Relying on memory and discipline fails. Build systems that capture time automatically or prompt you to log it.

Review Weekly

Look at your weekly hours before they become last month's problem. Are there gaps? Days with suspiciously low billing? Correct them while you still remember.

Frequently Asked Questions

What if I forget to start my timer?

Estimate based on calendar, email timestamps, and document modification times. Add a note that the entry is estimated. Consider automatic tracking to avoid this problem.

How do I handle work done on multiple matters?

Split the entry proportionally. If you researched an issue relevant to three matters, allocate the time based on applicability. Document your reasoning.

Should I track time in court waiting?

If you're waiting because you're there for the client, generally yes. Bill at your normal rate unless the engagement letter specifies otherwise.

How specific should descriptions be?

Specific enough that someone else could understand what you did and why it was necessary. Think: could this description support my bill in a fee dispute?

Is minimum billing ethical?

Billing minimums (e.g., 0.2 for any task) are common but controversial. If disclosed in the engagement letter, they're generally acceptable. Excessive minimums raise ethics concerns.

Stop Losing Billable Hours

ReadyDone captures your time automatically from screen activity. No timers to start. No entries to forget. AI identifies your billable work and generates entries for your review.

Attorneys using automatic time capture recover 10-40% of previously lost billable hours.

Start your free trial - No credit card required.

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Related Resources:

• ABA Billing Guidelines: Model Rules for Legal Fees - Ethics rules governing attorney billing
• UTBMS Codes: Complete Legal Billing Code Reference - Standardized billing codes for e-billing
• Best Clio Alternatives for Law Firms - Practice management and time tracking options