top of page
bg.png

Attorney Billable Hours Guide

Understand billable work, annual targets, daily timekeeping, billing increments, narratives, review, and the difference between recorded, billed, and collected time.

Attorney billable hours

Lawyer timekeeping

Billable time

Attorney billable hours are the portions of a lawyer’s work time that may be charged to a client under the engagement terms.

Billable hours are not the same as:

  • Total hours worked

  • Hours recorded

  • Hours approved

  • Hours placed on an invoice

  • Money collected

A lawyer may work eight hours, record seven, classify five as billable, have 4.8 approved, bill 4.5, and collect less than the full invoiced amount.

Understanding these stages helps attorneys track time accurately and avoid treating an annual target as though it were the client’s final charge.

What Are Attorney Billable Hours?

An attorney billable hour is time spent performing legal work that the client may be charged for under the engagement.

The controlling requirements may include:

  • Engagement letter

  • Fee agreement

  • Outside counsel guidelines

  • Matter budget

  • Billing policy

  • Applicable professional rules

  • Client approval

A billable hour is a measurement of time, not an automatic statement that the full amount will appear on the final invoice.

Common Billable Attorney Work

Depending on the engagement, billable work may include:

  • Legal research

  • Drafting pleadings

  • Drafting and revising contracts

  • Document review

  • Discovery

  • Depositions

  • Hearings

  • Court appearances

  • Client advice

  • Negotiations

  • Witness interviews

  • Matter strategy

  • Regulatory analysis

  • Approved travel

  • Communications about the matter

Whether a specific task is billable depends on the client and matter.

For example, one client may pay for legal research but limit the amount. Another may require advance approval. Another may treat certain research as included in a fixed fee.

Common Non-Billable Attorney Work

Possible non-billable time includes:

  • General administration

  • Firm meetings

  • Training

  • Business development

  • Recruiting

  • Technology problems

  • Time-entry administration

  • Internal work unrelated to a client

  • Personal activity

  • Work excluded by the client

  • Pro bono work, depending on firm classification

Non-billable does not mean unimportant.

Firms should track meaningful non-billable categories to understand capacity, administration, training, client development, and operational inefficiency.

Attorney workday divided among billable client work non-billable firm work administration and professional development

Billable Hours Terminology

Term

Meaning

Worked hours

All time spent working

Recorded hours

Time entered into the firm’s system

Billable hours

Recorded time classified as chargeable

Approved billable hours

Time approved after review

Billed hours

Time included on an invoice

Collected value

Money received from the invoice

Write-down

Value removed before or during billing

Write-off

Invoiced value removed after billing

The firm should use consistent definitions in policies and dashboards.

Billable-Hour Targets

A billable-hour target is an internal performance or workload expectation.

Targets may be:

  • Annual

  • Monthly

  • Prorated for leave

  • Different by role

  • Adjusted for part-time schedules

  • Inclusive or exclusive of pro bono credit

  • Tied to bonus eligibility

  • Combined with other performance measures

A target is not a direction to bill work that did not occur.

Attorneys must record actual time accurately and follow applicable fee rules.

Calculating Annual and Monthly Targets

Example annual target:

1,800 hours per year

Average monthly pace:

1,800 ÷ 12 = 150 billable hours per month

Average weekly pace across 48 working weeks:

1,800 ÷ 48 = 37.5 billable hours per week

Average daily pace across 240 working days:

1,800 ÷ 240 = 7.5 billable hours per day

These numbers illustrate the arithmetic, not the total hours an attorney must be at work.

A lawyer may need more than 7.5 working hours to record 7.5 billable hours because of administration, training, interruptions, and other non-billable obligations.

Targets should account for:

  • Holidays

  • Vacation

  • Sick leave

  • Firm responsibilities

  • Business development

  • Training

  • Pro bono expectations

  • Matter availability

Attorney billable hours model comparing capacity target performed recorded approved and billed time

Billing Increments

Law firms often record hourly time in decimal units.

Examples:

  • 6 minutes = 0.1 hour

  • 15 minutes = 0.25 hour

  • 30 minutes = 0.5 hour

  • 45 minutes = 0.75 hour

  • 60 minutes = 1.0 hour

A client may require:

  • Six-minute increments

  • Fifteen-minute increments

  • Exact minutes

  • No minimum charge

  • No rounding up

  • Separate short tasks

  • Grouped related communications

Use the method permitted by the client.

See How to Calculate Billable Hours.

Writing Attorney Time Entries

A time entry should identify the work and provide enough context for review.

Weak:

Research.

Clearer:

Researched admissibility of prior-act evidence for motion in limine.

Weak:

Call with client.

Clearer:

Conferred with client regarding document collection status and production deadlines.

A useful description often includes:

Action + subject + purpose

Avoid unnecessary disclosure of confidential or privileged information.

Task and Activity Codes

Some clients require UTBMS or another code set.

A task code identifies the legal workstream.

An activity code identifies how the work was performed.

Example:

  • L320 — Document Production

  • A104 — Review/Analyze

Narrative:

Reviewed collected records for responsiveness and privilege before production.

The attorney should confirm that the code matches the purpose of the work.

Daily Attorney Timekeeping Workflow

  1. Capture work while it occurs.

  2. Review calendars, documents, email, and calls for missing activity.

  3. Select the correct client and matter.

  4. Confirm duration.

  5. Classify billable or non-billable.

  6. Write a clear description.

  7. Apply required codes.

  8. Check client billing guidelines.

  9. Remove duplicates and overlaps.

  10. Approve the final entry.

The ABA has described contemporaneous timekeeping as the most accurate approach for recording both time and descriptions.

Common Attorney Timekeeping Mistakes

Waiting until the end of the week

Late reconstruction increases omissions and estimates.

Self-editing before recording

A lawyer may omit work before the billing attorney evaluates it.

A better process is to record actual work and preserve later adjustments.

Using the wrong matter

An accurate narrative assigned to the wrong matter is still an inaccurate financial record.

Vague descriptions

The client cannot understand “work on case.”

Block billing

Combining unrelated tasks can prevent meaningful review and may violate client guidelines.

Improper rounding

Use the agreed billing increment.

Duplicate billing

Do not bill the same time to more than one client.

Billing administrative work

Clerical or administrative tasks may not be chargeable.

Approving an AI suggestion without review

A generated entry can contain the wrong matter, duration, code, or description.

Frequently Asked Questions

What are attorney billable hours?

They are hours spent performing legal work that may be charged to a client under the engagement terms.

No. Attorneys also perform administration, training, business development, firm management, and other non-billable work.

No. A target is an internal expectation. Client invoices reflect reviewed and approved charges under the engagement.

Attorneys should record work contemporaneously, select the correct matter, confirm duration, write a clear description, apply required codes, and review before release.

MIRA can suggest classification, but the attorney or authorized reviewer should make the final decision.


Wavy Surface

Track Legal Work While It Is Still Recent

MIRA helps attorneys capture activity, prepare draft time entries, suggest descriptions and billing codes, and review time inside Microsoft Teams.
bottom of page