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Recent surveys indicate that nearly one-third of
corporate law departments are currently using or considering electronic
billing from their law firms. In the past, most law firms have
waited for their clients to tell them what systems they have to use.
However, a LawNet report found that this has led to
widespread law firm dissatisfaction with many of the electronic
billing systems imposed by their clients. As firms have tried to use
these systems, they have discovered hidden expenses and difficult
setup requirements, as well as significant annual fees
(sometimes a percentage of the amounts billed).
Getting started on some systems is so complex that firms have
had to
hire consultants. |
“We prefer and recommend Serengeti Tracker because it is the
easiest system to set up and use when submitting invoices. The
application is well-designed, with efficient online bill
processing. In addition, our attorneys have a centralized place to
communicate budgets, case status, and other key information to our
clients. And, Serengeti does not impose any charges on law firms to
use the system.”
-
Wendy Rustay
Sr. Billing Manager
Bingham McCutchen LLP
Key factors in law firms' preference of
Serengeti Tracker include:
No charges to
the firm to bill or use the system
No time-consuming task/activity codes required
Quick implementation without
the need to customize LEDES, submit
timekeepers/rates, send a test invoice, or use clients'
matter numbers
Instant invoice error messages and detailed resolution
instructions; notification of reduced bills |
As a result, many law firms are becoming more proactive, encouraging
their clients to involve them in the process of selecting an
electronic billing vendor that is easy to implement, and that works
well for them, as well as for the clients. What are the factors that
law firms should consider when discussing e-billing/matter
management systems with their corporate clients?
Cost to Law Firms
Although the choice to use an e-billing system is generally made by
the client, most e-billing systems charge law firms to send bills
through the system. Some charge a percentage of the amounts billed,
significantly increasing the cost of transmitting larger bills.
These costs can multiply as firms are asked to send bills
electronically to multiple clients. Firms generally do not consider
such costs to be part of general overhead, as they are incurred only
for certain clients.
Serengeti does not charge law firms for use of the e-billing or any
other features in Serengeti Tracker. Law departments bear the fixed
monthly cost for the entire system, which generally is set for a
year. When other vendors’ charges to law firms are taken into
account, the overall cost of using Serengeti Tracker is usually much
less than other systems, even those with very limited
functionality.
Customization of E-Billing Data Standard
Many electronic billing vendors require customization of the LEDES
standard data output, which can involve time-consuming, costly
modifications to law firm time and billing systems. Such
customizations negate the reason for having the LEDES standard, and
result in law firms having to meet different standards for various
clients. Serengeti Tracker adheres strictly to the LEDES 1998B
standard, without any modifications.
For foreign law firms, or domestic law firms that have time and
billing systems that cannot generate even the standard LEDES data,
Serengeti Tracker can also accept non-LEDES bills (Word, Acrobat,
rich text, etc.). This is important if the corporate law department
wants to have all of its information in a single system, and does
not want to have to maintain and work in two separate systems, one
for electronic bills and one for paper bills.
Required UTBMS Task and Activity Codes for
Every Time Entry
Some systems require that every time entry in a bill be accompanied
by a separate UTBMS task code and an activity code in order to be
accepted. Such coding is time-consuming for law firms to enter and
check. However, most corporate clients have found that such data is
not helpful, and that there are better ways to manage spending (e.g.
through budget management). A recent survey of ACCA members found
that only 4% of law departments now require UTBMS coding from any of
their firms, and one-fourth of them admit that they don’t even use
the data that they receive. Therefore, although Serengeti Tracker
accepts UTBMS coding, it does not require it. Some law departments
using Tracker do require UTBMS coding only of expenses, which is
generally easily generated by law firm time and billing systems.
Ease of Setup and Use
Many electronic billing systems require that law firms complete a
lengthy implementation process, including advance approval of all
timekeepers and rates, use of client billing nos., etc. Before
seriously considering a system, it is important to find out the
specific setup requirements. Because Serengeti corporate clients
authorize timekeepers, rates, and other information for each matter
as they review bills, there is no complicated implementation process
for law firms to get started on Serengeti Tracker.
It is also important to understand the steps necessary to submit
multiple invoices, and how to resolve errors that may occur. For
LEDES bills, Serengeti accepts an unlimited number of bills for a
client in a single batch which can be uploaded with one click. If
there is an error in a bill (whether uploaded individually, or part
of a batch), Serengeti not only provides an
immediate notice to the firm which includes the type and location of
the error, but also describes how to resolve the error.
Implementation Time and Success Rate
LawNet's e-billing survey found that there were e-billing
implementations that took many months, resulted in the connection of
only some of a corporation’s law firms, or failed altogether. It is
therefore important to examine a vendor’s past implementations to
determine how long they normally take, and whether they are
complete.
All of Serengeti’s implementations have resulted in connection to
all law firms working with a law department (not just those that
generate special data or codes). From data conversion to the
completion of implementation and training, the process generally
takes 4-6 weeks. For some of the largest law departments in the
world (including numerous foreign legal offices and hundreds of law
firms worldwide), the process has taken less than three months.
Profile: Implementing a
small law department |
Profile: Implementing a large law department
Foreign Currency Billing and Reports
For non-U.S. law firms, it is important that
the e-billing system be able to accommodate foreign currencies and
value added taxes. It is also important that such information
automatically convert into single currency reports for whatever
currency is selected by an in-house user creating reports.
Serengeti Tracker is accepting bills from law firms in more than 125
countries, and can accept bills in over 150 different currencies.
Each individual user can select a currency preference for viewing
bills, budgets and other financial
information in all of their matters and reports. The company can
also select a currency preference for all of its global matters and
reports.
Sharing Information in Addition to Bills
Many e-billing systems transmit only billing data. As a result, law
firms and clients still must exchange budgets, status updates,
documents, deadlines, and other information in paper form or by unencrypted
email. As a result, the client has to organize and process this
additional information, perform its own actual-to-budget
comparisons, and create its own reports that include status and
results information in addition to their billing reports.
Serengeti Tracker integrates e-billing with overall matter
management in a single shared system, which is accessed online by
both law firm and law department users. Budgets, status updates,
documents, and other key information are shared electronically, and
kept in organized matter folders, accessible by authorized team
members. The system automatically compares actual spending vs.
budgets, and includes status and results information with spending
information in reports.
Visibility to Other Potential Corporate
Clients
Tracker’s unique many-to-many architecture permits companies who are
seeking to assign work to new law firms to search for and view information about any of the law firms who are working with other
companies on the system. Most other systems require law firms to
enter and maintain separate sets of background information for each
clients on the system. In Serengeti, law firms provide one set of profile
information about their offices, individual attorneys, practice
areas, representative clients, etc. which is accessible by all
corporate law departments on Tracker. Corporate users search through
the Tracker Worldwide Directory by jurisdiction and/or practice area
to locate qualified law firms who are already on Tracker. As a
result, law firms have a unique (and free) marketing opportunity to
the thousands of in-house counsel who are on Tracker, and who use
Tracker to find and retain new law firms who are already using the
system.
System Upgrades
Many e-billing systems either do not regularly upgrade their
systems, or require significant setup and charges for upgrades. No
system is perfect, so upgrades are a sign that the vendor is
listening to feedback from users and improving the system. However,
there can be issues of implementation and cost associated with each
upgrade.
Serengeti regularly upgrades Serengeti Tracker to meet the evolving
needs of the thousands of users on the system (last year there were
four upgrades). Users need take no action to receive the full
benefit of the upgrade, which is done overnight on the hosted
system. Advance notice and training is offered, and there is no
additional charge for any upgrades. Recent upgrades have included
foreign currency conversions for bills and reports, and line item
adjustment of LEDES bills.■ top |
