The term “utilization rate” is used in almost every industry, although it has a slightly distinct meaning in the legal profession. The utilization rate is a key performance indicator law firms use to monitor time spent on billable and non-billable tasks. If team members spend more time on billable work, the utilization rate will be high, boosting cash flow.
The utilization rate reveals how you spend your time. Your ability to make data-driven decisions will improve, and your profitability will increase as you better understand how your business runs. Billable hours are the amount of time an attorney spends performing tasks for clients, and the law firm may bill for these hours. Conversely, non-billable labor refers to unpaid indirect obligations that an organization must perform, including administrative research or client prospecting. It would be challenging to keep a manual check on this. Innovative attorney-client management US visa status tracking software would be great to handle this.
How to Improve a Law Firm’s Utilisation Rate?
Various factors, including the practice area, firm size, amount of expertise, location, and others, can influence the utilization rate of a legal firm. You can examine the data trend to see how other law firms in your practice area function to have a full understanding.
Ensure Accurate Time Tracking by the Law Firm
Accurate time monitoring is the first step in raising the company’s utilization rate. Keeping track of time can be challenging and subject to human error. According to research by the American Bar Association, lawyers who record their hours at the end of the day face the risk of missing up to 10% of their billable time, which also means losing money. You can use time-tracking software and US visa status-tracking immigration software to track your time better.
Reduce time-consuming, non-billable procedures like invoicing to raise utilization rates. Legal invoicing software automates the procedure by automatically producing invoice templates based on chargeable activity and sending automated reminders.
Reduce Obstacles To Client Payments
Your utilization rate and billable hours may be affected if processing payments and reporting takes a long time without the right tools. By offering online payment choices, your business can lower payment barriers. Accepting payments through credit, debit, and Automated Clearing House (ACH) alternatives gives customers a simple and quick way to pay you and is quickly becoming the standard in the sector. Using attorney-client management software or US immigration software online like Imagility, the law firm may accept payments online effectively.
The utilization rate affects the business’s profitability. By utilizing contemporary technologies, legal firms must raise their utilization rate. An immigration application tracking tool, Imagility helps firms streamline their immigration procedures. You can also include other crucial legal applications to offer more features.