Tips for Setting Up An Automatic Time-Keeping System

We have just started talking about the fourth area of the five areas that make up every business in the world. This fourth area is "billing." The other four areas are: "Clients" and "customers"; "Administration"; "Getting the work done"; and "Collecting."

This week's tip is to set up an automatic system for billing time for every piece of paper that comes in to your office and every piece of paper that goes out of your office. We call the system "automatic time-keeping system."

We talked about this "automatic time-keeping system" in the area of "administration," and in particular, we talked about it as a "fail-safe" system.

The following is a summary of what we said about this system under "administration:"

To save time, an attorney can have another staff person open mail. This is one of the secrets of running an efficient office because it is profitable to have non-lawyers follow through with administrative tasks such as opening mail.

In our firm, we train our staff to do various administrative tasks that will help the lawyers spend more time on cases.

As the mail is opened, the original is routed to a file to be properly organized. The original piece of mail always goes in the client's file.

In the right hand corner we write, "client" indicating the client has been sent a copy of the incoming mail.

The client's folder then gets circulated to the people in the firm handling the matter. The lawyers place a check mark on the mail and their initials indicating they have read it. They also indicate the amount of time they spent on the matter.

In the column I wrote, "Making the input of time with regard to reviewing incoming mail automatic and "fail-safe" saves the attorney a tremendous amount of time. The attorney can use the copy of the incoming mail that the lawyer receives as a speed memo to other people in the office to give them assignments to do with regard to the incoming mail or to just simply make other communication that is important for the ongoing handling of the client's matter."

Let's follow a typical piece of mail that would come into your office to see how it is automatically billed. Then, let's see how a piece of mail that is a letter responding to the incoming mail can be automatically billed as well.

The automatic billing trail shows up as follows:

Incoming Mail:
Step 1: Mail is opened;
Step 2: Information copies are prepared for each lawyer and legal assistant assigned to handle the client's file;
Step 3: The original is routed to the client's file;
Step 4: A time copy is prepared for entry in the computer for the responsible lawyer on that client's matter; and
Step 5: A carbon copy of the incoming mail is sent to the client.

Outgoing Mail:
Step 1: Letter is dictated;
Step 2: A copy is placed in the client's file;
Step 3: Information copies are prepared for all assigned lawyers and legal assistants handling the client's file;
Step 4: A time copy is prepared for entry in the computer for the responsible lawyer on that client's matter; and
Step 5: A carbon copy of the outgoing mail is sent to the client.
As you can see, the responsible lawyer on the above matter does not have to write up a time ticket or make a time entry for reviewing the incoming mail and the outgoing mail if the responsible attorney does not actually generate the outgoing mail themselves. The responsible attorney must eventually review the incoming mail to justify the time ticket, but it is equally as important to stay abreast as to the status of the client's case. Likewise, the outgoing mail needs to be reviewed by the responsible attorney for the same reasons. If the responsible lawyer does the work to prepare the outgoing letter, that lawyer would be responsible for being sure there is a time entry inputted at the time the letter is prepared. Oftentimes this can be done automatically without the necessity of having the lawyer write it up, do computer input, or dictate their time, by simply indicating on the final draft of the letter an appropriate time entry circling it so that the appropriate time input person can utilize this final draft as a time entry facilitation tool.

When I give directions for a final draft to be put on letterhead I put the letter "f" and circle it meaning it is ready for final and I put an amount of time and circle it indicating that I want a time entry done on the letter because I have not done my own time entry. Placing a time increment on a final draft of the letter and circling it is the absolute quickest way to have a time entry be made. I don't have to write up a time ticket, open up a timekeeping billing system on my computer, or dictate the time, I simply put down the time increment and circle it and the rest is done automatically by a staff member.

It is a tremendous psychological boost to know that things that are coming into your office are being "processed" in the proper way including the keeping of time. Everything that is received in your office needs to be properly "processed." Whether it is a letter, a pleading, a document, a fax, an email, UPS, FedEx, certified mail, hand delivery, or carrier pigeon, it needs to be properly processed and billed!

Likewise, again, everything that goes out of your office needs to be "processed" and billed!

The more systems I have in my office and the more that these systems become automatic, the more time I have to interact with clients! Wow! Now there is a "novel idea," lawyers actually having time to properly interact with clients! The more time I spend with clients, the more I bill, the more I bill, the more I collect, the more I collect, the more I make.

Next week we are going to talk about a unique expense that is billed in our office, that is "word processing." You are probably asking yourself how can a lawyer justify billing for word processing. I will tell you in next week's article. I think you will see many philosophical economic concepts that can easily be added to your firm to create new and better "profit centers." I will guarantee you that my concepts on billing will not only pay for your subscription costs to The Daily Record, but if done properly will pay for your next vacation and then some.

Talk to you next week.


Jim Wirken is a civil trial attorney and the Chairman of the Board of The Wirken Law Group in Kansas City.