Depending on your practice area, flat fee billing might make sense. And by make sense, we mean that that it’s not just easier (it always is easier then hourly billing), but is also financially prudent.
The ironic thing is that to make this latter determination, with any basis in realty, at least, you have to have underlying hourly data – that is, how do you know how much to charge, and make money, on a flat fee basis if you don’t know how much time you generally spend on a case?
To illustrate, let’s say you want to make about $200/hour, a reasonable billing rate depending on your area and expertise; your flat rate should basically be the time you can reasonably assume to spend on the case times your desired rate – but how do you know if you’ll spend 5 hours or 50?
Online Legal Software
can help. Using our narrative system, you can easily track the time you’re spending on your cases, regardless of whether you bill for it. It allows you to build the base of knowledge upon which to base flat-fee billing decisions.