Whether carried out in-house or outsourced to a legal spend management vendor, the value of managing legal spending is indisputable. Legal budgets are being squeezed more than ever before, which means firms are becoming increasingly focused on their expenses. Here is how to choose the right legal spend management solution for your business.
Why Is E-Billing One Of The Best Tools To Use In Legal Teams?
One of the best tools to use in legal teams is Electronic billing. Electronic bills are sent out automatically on a regular basis, which frees up time for lawyers to manage more important matters of law rather than chasing payments or trying to keep track of who owes them money. Like for example, Counsel link customers seeking even basic insights into their legal spending are inevitably forced to purchase, integrate, and configure separate products to complement the platform, and that is why the first company you see and know is not always the best. But, if you are looking for an alternative, there are companies that can immediately analyze blended rates by the law firm, practice area, and business region.
Why Is This So Beneficial?
This is beneficial because it frees up the time of legal teams, who then have more time to manage other important matters. It saves on costs, as no paper or postage is needed for this service (just an electronic signature). Finally, accurate reports can be produced in seconds if needed.
Who Might Use This Tool?
Legal departments within companies would benefit from this service by freeing up the time they spend on chasing payments and trying to keep track of money owed. They can also gain detailed financial reports of their clients at any given moment.
Why Should You Use This Management Solution?
A legal spend management solution will help organizations improve on-boarding, compliance, and reporting processes while reducing costs. Look for a vendor that can demonstrate an in-depth understanding of the industry, as well as provide advanced technology with detailed reporting capabilities. It is also essential that they have strong knowledge of legal processes and are able to consult on potential opportunities for improvement within your organization throughout the implementation process.
Here is how to choose:
1. Question How You Currently Track Legal Spend
Many legal departments still rely on manual methods to track their spending, resulting in inconsistencies and errors. Manual methods are not cost-effective or scalable, especially when it comes to tracking electronic spending. It's time for legal teams to switch to a more effective way of managing their expenses.
2. Undertake A Comprehensive Legal Spend Audit
It is important to have a clear understanding of your current spending before making any changes or taking on a new solution. A comprehensive legal spend audit will not only highlight the areas of non-compliance, but will also pinpoint potential opportunities for saving money and increasing efficiency. Taking action on this information will reduce both direct and indirect expenses, as well as create financial savings which can be invested elsewhere in the enterprise.
3. Choose A Vendor With a Proven Track Record
Choosing an experienced vendor that offers market-leading solutions is essential to maximizing cost savings and compliance benefits from legal spend management. The right vendor has access to innovative technology that enables it to spend data in order to provide actionable insights, making it easier for firms to reduce costs while adhering to compliance mandates.
4. Select Advanced Analytics & Reporting Solutions
To get the most out of your legal spend management solution, you need a comprehensive set of reports that help identify potential areas for improvement. Legal departments should look for solutions that include sophisticated analytics and reporting capabilities. This will not only make it easier to monitor spending levels across multiple jurisdictions; it also enables you to make better decisions around budget allocations and staffing resources.
5. Determine Essential Capabilities That Support Your Business Goals
6. Ensure the Vendor Has Strong Understanding of Legal Processes
It is critical that any vendor you work with has a strong understanding of legal processes and can help you identify opportunities for improvement. This will ensure your implementation goes smoothly, as well as maximize the value gained from the solution over its lifetime. A vendor's ability to demonstrate industry-specific knowledge during onboarding, training, and support phases is crucial for success.
By carefully considering each stage in the legal spend management lifecycle — from tracking to reporting — your company will take a big step toward maximizing cost savings while proactively managing expenses. With an effective strategy in place, you will no longer need to fear overspending with your business.