After this setup, your firm will:
- Track time in real time from any device, no more end-of-week time reconstruction
- Generate invoices automatically at end of month from your time entries
- Send invoices and collect payment online, clients pay by card from the invoice email
- Automate retainer replenishment requests when trust balances drop below threshold
- Run reminder sequences for outstanding invoices, no more awkward follow-up calls
- Stay IOLTA (trust account) compliant automatically without manual reconciliation
Why Attorneys Undercharge and Undercollect
There are three stages where law firm revenue gets lost. First, time leakage: work gets done but not entered because logging time feels like interrupting work. Research finds that attorneys who track time in real time bill 20-30% more than those doing daily or weekly reconstruction. Second, invoice delays: invoices sent weeks or months after the work was done are harder to collect, clients have moved on emotionally from the matter. Third, billing friction: if a client has to mail a check or call in a card number, many won't get around to it until you follow up.
All three problems have systematic solutions.
The Four Types of Legal Billing, and How to Automate Each
Hourly Billing
Time entries × hourly rate. Most common for litigation and transactional work.
Retainer Billing
Client pays a recurring or initial retainer. Fees drawn from trust as work is performed.
Flat Fee
Fixed price for defined scope: wills, incorporations, simple contracts.
Contingency
Fee is a percentage of the recovery. Invoice at settlement/judgment.
Recommended Legal Billing Tools
Clio, Try Clio free →
The most widely used practice management and billing platform for small law firms. Handles time tracking, matter management, client portals, trust accounting, and online payments. Integrates with 200+ tools including QuickBooks, Outlook, and Google Workspace. The Grow plan ($99/month) adds e-signatures and custom document automation.
MyCase
Practice management with strong client communication features. Built-in client portal lets clients view case updates, documents, and invoices in one place. Good choice for consumer law practices (family law, estate planning, criminal defense) where client communication volume is high.
LawPay
The leading payment processing solution built specifically for law firms. Handles trust accounting compliance automatically, earned fees go to operating account, unearned retainer funds go to trust (IOLTA). ABA and state bar approved. Can be used standalone or integrated with Clio and other practice management tools.
Step-by-Step Setup for Law Firm Billing Automation
Set Up Clio and Configure Your Matters
Sign up for Clio and complete the initial setup: add your firm name, bar number(s), billing rates per attorney, and trust account information. Create a Matter for each active client, a Matter in Clio is a container for everything related to one client case: time entries, documents, communications, billing.
Configure billing settings per matter: hourly rate, billing contact, invoice frequency (monthly is standard), and payment terms (Net 14 or Net 30 are most common).
Start Tracking Time in Real Time
The single biggest billing improvement most attorneys can make: start a timer when you start work, stop it when you stop. Clio's timer runs in your browser or phone, click a matter, start the clock. No more reconstructing time at 6pm on Friday.
If you still prefer to enter time manually, do it within 24 hours. Studies consistently show that time entered same-day is 20-30% higher than time entered a week later from memory. That difference goes straight to revenue.
Set Up Your Automated Monthly Billing Run
In Clio, go to Bills → Bill Settings and configure your monthly billing cycle. Set the billing period (last day of month is standard), minimum billable balance (typically $0, bill everything), and invoice template. At the end of each month, Clio generates draft invoices for all active matters with unbilled time entries.
Your job: review the draft invoices, make any adjustments, and approve. Clio sends them. Instead of manually building invoices from time sheets, you're reviewing and clicking approve.
Enable Online Payment via LawPay or Clio Payments
Connect LawPay or Clio Payments to your account. Every invoice will now include a "Pay Now" button. Clients can pay by credit card or ACH directly from the invoice email, no check-writing, no card-number calls.
Critical: when the client pays, the system automatically routes funds correctly. Earned fees go to your operating account. Unearned retainer advance goes to your IOLTA trust account. This trust accounting compliance is handled automatically, no manual transfers needed.
Configure Retainer Replenishment Automation
For retainer clients: in Clio, set a "minimum trust balance" threshold for each matter (e.g., $500). When the trust balance drops below this threshold, Clio automatically generates a replenishment request and emails the client for the additional retainer. You don't have to watch the trust balance manually.
This is one of the highest-ROI automations in legal billing: retainer balances often run dry without anyone noticing, leading to working unbilled or asking clients for money in an awkward conversation. The automatic replenishment request is professional, expected, and removes the awkwardness.
Frequently Asked Questions
Try Clio free for 7 days
Set up your first matter, log some time, and send a test invoice. No credit card required for the trial.
Try Clio Free → Invoice Guide →