Question 1

What is a legal service invoice?

Accepted Answer

A legal service invoice is a detailed billing statement that attorneys and law firms send to clients documenting legal services provided and fees owed. It typically includes the law firm name and contact information, attorney credentials and bar numbers, client name and matter information, detailed time entries with dates and descriptions of work performed, hourly rates for different professionals (partners, associates, paralegals), total hours and fees, case-related expenses, retainer applications if applicable, outstanding balance, payment terms and due date, and accepted payment methods. Legal invoices must be detailed enough to justify the fees while maintaining client confidentiality.

Question 2

How to make a legal invoice?

Accepted Answer

To create a legal invoice: Download our free legal billing template in Excel, PDF, or Word format. Add your law firm details including firm name, address, phone, email, website, and attorney credentials. Enter client information including name, company, address, and matter/case number. List all billable time entries with date of service, description of work performed, time spent, billing rate, and total fee for each entry. Include all case-related expenses with descriptions. Show any retainer deposits and applications. Calculate subtotal of fees, add expenses, subtract retainer applications, and show final balance due. Include payment terms (typically Net 15 or Net 30 for legal services) and accepted payment methods. Send promptly after work is completed or on a regular monthly schedule for ongoing matters.

Question 3

Is the legal invoice template really free?

Accepted Answer

Yes, completely free with no hidden costs. Download in Excel, PDF, or Word format as many times as needed. No account required, no email signup, no credit card, no limitations. Just click download and start using immediately for your law practice.

Question 4

What should attorneys include on legal invoices?

Accepted Answer

Every legal invoice should include firm name and attorney information with bar numbers, client name and matter number, invoice number and date, billing period covered, detailed time entries with date and task description, hours worked at specified rates, case expenses with descriptions, subtotal of fees and expenses, retainer application if applicable, total amount due, payment terms and due date, accepted payment methods, and firm contact information. Be specific in time entry descriptions to demonstrate value.

Question 5

How should law firms price legal services?

Accepted Answer

Law firms typically use several billing models: Hourly billing (most common) with different rates for partners, associates, and paralegals ranging from $150-$800+ per hour depending on experience and market. Flat fees for routine matters like simple wills, uncontested divorces, or incorporation. Contingency fees (percentage of recovery) for personal injury and some other litigation. Retainer agreements for ongoing legal needs with monthly fees. Your pricing should reflect your experience, geographic market, practice area complexity, and the value delivered to clients.

Question 6

What billing increments should attorneys use?

Accepted Answer

Most attorneys bill in either 6-minute (0.1 hour) or 15-minute (0.25 hour) increments. Six-minute increments are most common as they provide more precise time tracking. Never bill in increments smaller than 6 minutes. Round appropriately: a 10-minute task becomes 0.2 hours (two 6-minute increments). Use time-tracking software throughout the day to capture time accurately rather than reconstructing it later.

Question 7

How do retainers work in legal billing?

Accepted Answer

A retainer is an advance payment held in your trust account (IOLTA account) until fees are earned. When you perform work, you "apply" the retainer by transferring earned fees from trust to your operating account. Show this clearly on invoices: Beginning retainer balance, plus any additional deposits, minus current fees being applied, equals remaining retainer balance. When the retainer is depleted, bill directly or request a retainer replenishment. Never commingle retainer funds with operating funds.

Question 8

Can law firms customize this legal invoice template?

Accepted Answer

Absolutely. All templates are fully customizable. Add your law firm logo and brand colors, include attorney names and credentials, modify time entry fields, adjust task codes, customize expense categories, add matter-specific fields, include court information, add disclaimers or terms of service, and adjust payment terms to match your engagement letters. Excel and Word formats are especially easy to customize.

Question 9

Should legal invoices include task codes?

Accepted Answer

For corporate clients and insurance defense work, yes. Many corporate legal departments require UTBMS (Uniform Task-Based Management System) codes that categorize legal work into standardized tasks like L110 (case assessment), L210 (discovery), L320 (trial), etc. Including task codes makes invoices more acceptable to corporate clients and streamlines their approval processes. For individual clients, task codes are optional.

Question 10

What are standard payment terms for legal services?

Accepted Answer

Common legal payment terms include Due Upon Receipt for small matters or final invoices, Net 15 (payment due within 15 days) for regular clients, Net 30 (due within 30 days) for established corporate clients, and payment in advance for retainer agreements. Always specify payment terms in engagement letters and prominently on invoices. Many firms require advance retainers from new clients before starting work.

Question 11

How should attorneys bill for expenses?

Accepted Answer

Always discuss expense billing in your engagement letter. Bill expenses separately from legal fees. Common billable expenses include court filing fees, service of process, deposition transcripts, expert witness fees, legal research databases, copying and printing, courier services, and travel (mileage at IRS rate, parking, meals if traveling). Include dates and descriptions. Most attorneys bill expenses at cost without markup.

Question 12

Do attorneys need to charge sales tax?

Accepted Answer

In most U.S. states, legal services are not subject to sales tax as they are considered professional services. However, some states do tax certain legal services or charge tax on costs like photocopying. International jurisdictions vary - some countries apply VAT to legal services. Consult your state bar association or a tax professional to ensure compliance with your jurisdiction.

Question 13

How often should law firms send invoices?

Accepted Answer

For hourly matters, invoice monthly to keep amounts manageable and maintain steady cash flow. Some firms invoice more frequently for high-volume matters. For flat fee matters, invoice at agreed milestones (50% on engagement, 50% on completion is common). For retainer clients, invoice monthly on the same date each month. Consistent, regular billing results in faster, more predictable payments.

Question 14

Should legal invoices include late fees?

Accepted Answer

Yes, including late payment terms encourages timely payment. Common late fees are 1-2% per month on overdue balances. However, check your jurisdiction rules - some bar associations regulate late fees on legal invoices. Always include late fee terms in engagement letters before work begins, not retroactively. Even if you rarely enforce them, having the terms stated motivates timely payment.

Question 15

How do attorneys handle billing disputes?

Accepted Answer

When clients dispute invoices, respond promptly and professionally. Review the disputed items carefully and provide supporting documentation like detailed time records or expense receipts. Refer to the engagement letter that outlined billing arrangements. Be willing to provide clarification but stand firm on properly documented work. Consider fee arbitration through your state bar for unresolved disputes. Document all communications regarding billing disputes.

Question 16

What payment methods should law firms accept?

Accepted Answer

At minimum, accept checks, bank transfers (ACH, wire), and credit cards. Many clients prefer paying by credit card despite processing fees. Consider accepting online payment platforms like LawPay or similar attorney-specific services that maintain trust account compliance. The more payment options offered, the faster you get paid. Some firms absorb credit card fees as cost of doing business.

Question 17

Should attorneys send invoices via email or mail?

Accepted Answer

Email is preferred by most clients and gets you paid faster. Send as PDF attachment (not editable Word or Excel files). Use clear subject lines like "Invoice from [Firm Name] - Matter [Case Name]". Include brief message in email body. Email creates automatic paper trail. Mail paper invoices only if clients specifically request them or for formal court-related billing.

Question 18

How should law firms track billable time?

Accepted Answer

Use dedicated time-tracking software that allows you to start timers as you work, categorize time by matter and task, add descriptions in real-time, and export to invoices. Popular options include Clio, MyCase, or simple tools like Toggl. Never try to reconstruct time at end of day - you will undercharge. Track all time immediately, then decide later what to bill.

Question 19

Can attorneys write off or discount fees?

Accepted Answer

Yes, attorneys can reduce or write off fees at their discretion. Common reasons include relationship building with new clients, resolving billing disputes, acknowledging inefficiencies in work performed, or accommodating client hardships. Document write-offs in your records. However, excessive write-offs indicate problems with either fee arrangements, time management, or client selection that should be addressed.

Question 20

What records must attorneys keep for billing?

Accepted Answer

Maintain detailed records of all time entries, expense receipts, invoices sent, payments received, trust account transactions, engagement letters, fee agreements, client communications regarding fees, and billing dispute resolutions. Keep records for at least 7 years or per your jurisdiction requirements. Good records protect you in fee disputes and demonstrate ethical billing practices.

Question 21

How do block billing and task-based billing differ?

Accepted Answer

Block billing lumps multiple tasks into single time entries like "Research case law, draft motion, conference with client - 5.5 hours". Task-based billing separates each task: "Research case law - 2.0 hours", "Draft motion to compel - 2.5 hours", "Client phone conference - 1.0 hours". Task-based billing is more transparent and less likely to face resistance from clients, especially corporate clients.

Question 22

Should law firms offer payment plans?

Accepted Answer

For larger matters or clients with limited resources, payment plans can help maintain access to legal services while ensuring you get paid. Require written payment plan agreements specifying amount, schedule, interest (if any), and consequences of default. Consider requiring some work to be completed and paid before proceeding with additional services. Payment plans should be exception, not standard practice.

Question 23

What is ethical billing for attorneys?

Accepted Answer

Ethical legal billing means charging only for work actually performed, avoiding fee splitting with non-lawyers, keeping client funds separate in trust accounts, providing detailed invoices that justify fees, communicating fee arrangements upfront in writing, not charging for administrative tasks, being reasonable in fees charged, and following all state bar rules on billing and fee arrangements. When in doubt, consult your jurisdiction ethical rules.

Question 24

How do flat fees work in legal billing?

Accepted Answer

Flat fees are fixed amounts charged for defined legal services, common for routine matters like uncontested divorce, simple will, trademark registration, or incorporation. State the flat fee clearly in engagement letter, define exactly what is included and what costs extra, specify when payment is due (usually upfront or at milestones), and invoice according to agreement. Flat fees shift risk from client to attorney - scope creep can make flat fees unprofitable.

Question 25

Why use Invoice Mama instead of free templates?

Accepted Answer

Free templates work for occasional billing, but if you invoice regularly, Invoice Mama saves significant time. Enter firm details once and they are saved. Clients and matters are saved for repeat invoicing. Automatic time tracking captures billable hours. Invoice numbers auto-increment. Send invoices via email directly. Accept online payments (get paid 2-3x faster). Automatic reminders follow up on late payments. Track invoices by matter and client. Generate financial reports instantly. Start free with 10 invoices, then $69 once for unlimited lifetime access.

Professional Legal Invoices That Get You Paid

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Everything Law Firms Need for Professional Billing

Time-Based Billing

Matter-Based Organization

Retainer Management

Professional Legal Format

Expense Recovery

Multiple Rate Structures

Trust Account Tracking

Task Code Integration

Payment Terms

Multiple File Formats

How to Create Your Legal Invoice

Choose Your Format

Add Firm Details

Enter Client & Matter Info

Detail Time & Services

Apply Retainers & Send

What to Include on Your Legal Invoice

Litigation Services

Corporate Legal Services

Real Estate Legal Services

Family Law Services

Estate Planning Services

Legal Research & Writing

Client Communication

Billable Expenses

Best Practices for Legal Billing

Bill Promptly and Consistently

Provide Detailed Time Entries

Follow Billing Increments Standards

Distinguish Retainers from Earned Fees

Use Engagement Letters

Separate Fees from Expenses

Include Matter References

Communicate Fee Expectations Upfront

Maintain Professional Records

Address Late Payments Professionally

Why Legal Professionals Choose Invoice Mama

Built for Legal Billing

Get Paid Faster

Bar Compliant

Matter-Based Tracking

Professional Appearance

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