Tracking billable hours means recording the time spent on work that can be charged to a client or matter. For law firms, accurate time tracking supports clearer invoices, better matter management, and stronger visibility into where professional time is being spent.
The most reliable approach is to capture time close to when the work occurs, connect each entry to the correct matter, and review the description before the entry moves into billing.
What Are Billable Hours?
Billable hours are the portions of a lawyer's or legal professional's working time that may be charged to a client under the firm's engagement terms and the client's billing guidelines.
Common examples include:
Drafting or reviewing legal documents
Conducting legal research
Preparing for hearings, depositions, or negotiations
Attending client meetings
Communicating with clients, opposing counsel, or other parties
Reviewing correspondence and matter documents
Developing legal strategy
Traveling when permitted by the engagement terms
Managing matter specific tasks that the client allows to be billed
Not every work activity is billable. Internal meetings, administrative work, training, business development, and general firm management are often treated as non billable unless a specific arrangement says otherwise.
Firms should confirm whether an activity is billable under the engagement letter, outside counsel guidelines, and any client specific billing rules.
How to Track Billable Hours Step by Step
A consistent workflow makes timekeeping easier and reduces the amount of work that must be reconstructed later.
1. Capture the activity when it happens
Record the activity during the work or immediately after it ends. The longer the delay, the more likely it is that short calls, emails, research tasks, and document reviews will be forgotten.
Useful capture methods include:
Starting and stopping a timer
Creating an entry after completing a task
Reviewing calendar events
Reviewing document activity
Reviewing sent emails and calls
Using passive or automatic time capture tools
Keeping brief notes during the day for later review
2. Select the correct client and matter
Every billable entry should be linked to the correct client and matter. Incorrect matter selection can create billing delays, internal corrections, and client questions.
Before saving the entry, confirm:
Client name
Matter name or number
Responsible lawyer or team, when required
Office or practice area, when required
Billing arrangement, when relevant
3. Record the duration accurately
Enter the actual time spent and apply the firm's approved billing increment. Many law firms use decimal increments, but requirements vary.
For example, a firm using six minute increments may record:
Actual time | Decimal entry |
Up to 6 minutes | 0.1 |
7 to 12 minutes | 0.2 |
13 to 18 minutes | 0.3 |
19 to 24 minutes | 0.4 |
25 to 30 minutes | 0.5 |
31 to 36 minutes | 0.6 |
37 to 42 minutes | 0.7 |
43 to 48 minutes | 0.8 |
49 to 54 minutes | 0.9 |
55 to 60 minutes | 1.0 |
The exact rounding policy should be defined by the firm and applied consistently. Client guidelines may require a different method or prohibit certain rounding practices.
4. Write a clear description
A strong time entry explains what was done, the subject of the work, and the purpose when it is useful.
A practical structure is:
Action + subject + purpose or outcome
Examples:
Reviewed draft services agreement and prepared comments regarding limitation of liability provisions.
Researched jurisdictional requirements for filing motion to compel.
Conference with client regarding settlement options and next steps.
Revised witness outline in preparation for deposition.
Reviewed opposing counsel correspondence and prepared response regarding discovery schedule.
Avoid vague descriptions such as:
Worked on matter
Attention to file
Emails
Research
Conference
Various tasks
5. Add required billing codes
Some clients require UTBMS, ABA, task, activity, or expense codes. Select the code that best matches the work performed and confirm that it is allowed under the applicable billing guidelines.
The written description should still explain the work. A code does not replace a clear narrative.
6. Review the entry before submission
Before saving, releasing, or submitting an entry, check:
Is the matter correct?
Is the date correct?
Is the duration reasonable?
Is the description specific?
Does the entry follow the client's billing rules?
Is a task or activity code required?
Does the entry contain confidential or unnecessary detail?
Should the time be separated into multiple entries?
7. Complete an end of day review
A short daily review can recover work that was not captured during the day.
Compare the time entries against:
Calendar appointments
Sent emails
Document activity
Phone calls
Meeting notes
Research history
Task lists
Messages in collaboration tools
The goal is to identify missing work while the day is still easy to remember.
Billable Hour Tracking Example
Consider a lawyer who completes the following work:
Time | Activity | Duration | Entry example |
9:00 AM | Review client email and attachments | 0.2 | Reviewed client correspondence and supporting documents regarding proposed transaction timeline. |
9:15 AM | Revise agreement | 1.1 | Revised purchase agreement regarding representations, indemnification, and closing conditions. |
10:30 AM | Client call | 0.5 | Conference with client regarding agreement revisions and negotiation priorities. |
11:15 AM | Legal research | 0.8 | Researched enforceability of limitation of liability clause under applicable state law. |
1:30 PM | Draft response | 0.7 | Drafted response to opposing counsel regarding requested contract revisions. |
This approach creates separate, understandable entries that show what work occurred and why it related to the matter.
Common Ways Billable Time Gets Missed
Billable work often disappears in small pieces. A lawyer may remember a two hour drafting session but overlook several short activities that happened around it.
Common sources of missed time include:
Short client calls
Quick email reviews and responses
Document revisions
Internal matter strategy discussions
Research performed between meetings
Work completed outside normal office hours
Mobile work
Travel related activity
Switching between multiple matters
Delayed time entry at the end of the week or month
A reliable system should make these activities visible without requiring the lawyer to reconstruct every detail from memory.
Manual, Timer Based, and Passive Tracking
Law firms can use several timekeeping methods. Each has strengths and limitations.
Method | How it works | Strengths | Limitations |
Manual entry | The timekeeper creates each entry from memory or notes | Simple and familiar | Easy to delay or forget |
Timers | The timekeeper starts and stops a timer for each task | Useful for focused work | Timers may be forgotten during interruptions |
Calendar based review | The timekeeper converts calendar events into entries | Helpful for meetings and scheduled work | Does not capture unscheduled tasks |
Passive time capture | Software records activity signals for later review | Helps surface short and interrupted work | Entries still require human review |
Combined workflow | Activity capture, timers, and manual edits are used together | Flexible and more complete | Requires clear firm standards |
For many law firms, the most practical model combines activity capture with timekeeper review. The system helps identify potential work, while the lawyer confirms the matter, duration, description, and billing treatment.
Best Practices for Tracking Billable Hours
Enter time throughout the day
Frequent entry reduces memory gaps and makes descriptions more accurate.
Keep matters easy to identify
Use clear matter names, numbers, and recent matter lists so timekeepers can select the right file quickly.
Separate distinct tasks
When different activities have different purposes, task codes, or billing treatment, separate them into individual entries.
Follow client billing guidelines
Review outside counsel guidelines and engagement terms before billing unusual activities, travel, administrative work, or multiple professionals on the same task.
Use consistent description standards
Provide examples of acceptable and unacceptable narratives. Consistency makes internal review faster.
Review short activities
Small tasks can add up. Include calls, brief document reviews, short research tasks, and substantive emails when they are billable.
Avoid unnecessary block billing
Combining multiple unrelated tasks into one entry can make the invoice harder to review. Follow the client's rules on block billing and task separation.
Protect confidential information
Descriptions should be clear without revealing privileged strategy, sensitive personal information, or unnecessary confidential details.
Review before the billing cycle closes
Do not wait until prebill review to correct weeks of incomplete entries. Daily and weekly reviews are more efficient.
Daily Billable Hours Checklist
Use this checklist before ending the day:
Review all active matters worked on today
Compare entries with the calendar
Check sent emails and substantive messages
Review documents created, revised, or reviewed
Confirm client and matter selection
Confirm durations and billing increments
Improve vague descriptions
Add required task or activity codes
Separate unrelated tasks
Confirm compliance with client guidelines
Save or submit all completed entries
How Law Firms Can Improve Timekeeping Compliance
Timekeeping compliance improves when the process is clear, easy to follow, and connected to the tools lawyers already use.
Law firms can support better compliance by:
Defining when time should be entered
Publishing description examples
Standardizing billing increments
Explaining client specific rules
Creating a review and correction process
Using reminders for incomplete time
Providing visibility into missing entries
Training new lawyers and staff
Measuring submission timeliness
Reducing unnecessary steps in the workflow
The objective is to make accurate timekeeping part of daily legal work instead of a separate administrative project.
Capture Billable Time More Accurately with MIRA
MIRA is an AI powered timekeeping and smart capture product for law firms and professional services teams. It helps capture work activity from connected tools such as Microsoft OneDrive, Outlook Calendar, iManage Work, Chrome, and other supported systems.
Timekeepers can review captured time inside Microsoft Teams, then edit, merge, save, or release approved entries toward connected finance or billing systems. MIRA can also assist with billable descriptions and suggest task or activity codes where relevant.
MIRA focuses on time capture and time entry quality before billing. It does not replace a firm's full billing or practice management platform.
For a connected workflow, explore Automated Time Tracking for Lawyers.
Related Resources
Frequently Asked Questions
What is the easiest way to track billable hours?
The easiest method is one that fits the timekeeper's normal workflow. Many lawyers use a combination of activity capture, calendar review, timers, and manual editing. The entry should still be reviewed before it is submitted.
When should lawyers record billable time?
Lawyers should record time during the work or as soon as possible afterward. Daily review is more reliable than reconstructing time at the end of the week or month.
What information should a billable time entry include?
A billable time entry normally includes the date, timekeeper, client, matter, duration, description, and any required billing code.
How detailed should a legal billing description be?
The description should identify the work performed and its subject or purpose. It should be specific enough for review without including unnecessary confidential information.
Are emails billable?
Substantive client or matter related emails may be billable, depending on the engagement terms and client billing guidelines. Administrative or internal emails may be treated differently.
Are internal meetings billable?
Internal meetings may be billable when they are necessary for the client matter and permitted by the client's guidelines. Firms should confirm the applicable rules before billing them.
What is passive time capture, and should every captured activity be billed?
Passive time capture uses activity signals from connected tools to help identify potential work performed. The timekeeper reviews the captured activity and decides how it should be recorded. Not every captured activity should become a billable entry; some work may be non billable, duplicated, administrative, confidential, or excluded by client guidelines.
How can law firms reduce missed billable hours?
Firms can reduce missed time by encouraging prompt entry, reviewing activity sources daily, using passive capture tools, maintaining clear policies, and making the timekeeping process easy to complete.
