The Importance of Software for Law Firms
Modern law firms handle a significant amount of confidential and valuable information. Maintaining this data requires a high level of document security and accessibility. Cloud-based storage solutions grant secure access to sensitive files from anywhere, ensuring lawyers are able to read or edit critical documents on their computer or mobile device. This boosts efficiency by removing the burden of carrying notepads, physical files, and flash drives or thumb drives for quick data retrieval. Cloud-based document storage software also provides you with enough space to store an entire library of documents without having to pay extra for storage space on your servers.
Most law firms cannot properly track their internal and external communications simply because there are so many avenues for gathering data. These methods include text messages, email, social media, and client interviews, which can be both written by the client and verbally transcribed . In some cases, existing software solutions only incorporate certain types of data, such as email and text messages. Using current software technology, firms can become better organized with proper management of communications and create databases that merge different types of communications for easy access and analysis.
Law firm software is built to perform multiple tasks related to case management. The software can import and export calendars, keep track of all pending deadlines, and alert appropriate staff members of upcoming deadlines via email, text message, or other means. Through accurate documentation, lawyers are held accountable for their actions and responsibilities. Furthermore, the software will help you track your time, enabling you to make timely filings when it comes to submitting pleadings or otherwise filing an action.
Must-Have Features in Law Firm Software
The best law firm software will feature several key features that are distinctive from traditional software. A cloud-based infrastructure, for example, can provide lawyers with around-the-clock access to their information, be it case-related, billing or sensitive client data. And don’t underestimate the importance of a mobile-optimized interface to G-Drive and your other cloud services. Lawyers often work from multiple locations during the day, including in the courtroom and at coffee shops. Their law firm software must accommodate their need for fast, reliable access to all of their cloud data and files regardless of their physical location. You will undoubtedly want to look for robust case management features in your law firm software. This is a top priority for most firms. This will help you keep track of the latest developments with your active cases, as well as remember critical dates and deadlines for your clients. Perhaps even more important than effective case management is the ability to create and send invoices to clients. Many firms are realizing now that they are losing income by failing to bill for every activity on a client’s case – even when these activities can be time-consuming and tedious. The right law firm software will integrate with all of your other cloud-based services and applications, such as Outlook, Google Drive and all of your legal research tools. This will help you get paid for every action that you perform for your clients. The practice management software you choose must also include document automation features that can help you save hours each week. The right legal practice management solution will seamlessly integrate with all of your other systems so that you can add new clients and cases and input information regarding existing clients and cases without missing a beat. Finally, make sure that your law firm software provides the highest level of data encryption. You cannot afford to overlook essential security features in this day and age, especially when you are dealing with large amounts of sensitive data. By taking these steps, you can find the perfect law firm software that will save you time, money, and effort.
Law Firm Practice Management Software
Sorry to say but "best" is subjective when it comes to practice management software for lawyers. They try to address a need. One size does not fit all without making significant compromises.
Let’s start with the obvious category, iPad lawyering apps. Your choices are limited to direct access to the practice management system via the app or web access via the browser. Those practice management systems that have created a good app for access as well as those that offer terrific mobile sites integrated with the practice management system.
What are top rated and commonly used practice management systems:
Clio – web based. Our top pick. We have been using Clio since 2009. It keeps getting better and better – faster, more features, better security (TLS 1.2 and FIPS 140-2 support added this month), heck more colorful too. Clio is a true full featured practice management system. I scour the various online lists, forums and other sources of knowledge about legal technologies, a constant learning exercise. While I have been harsh critical of Clio in the past, I have to be frank and begin my list with it because Clio could fail tomorrow and be a huge loss to the legal tech community. They think about us. They listen to us. They educate us. They push the envelope. They provide extra services like Clio Grow and Clio Payments. They also do it all cost effectively. I’m sure Clio isn’t right for everyone but I have never met a lawyer who uses it [when the firm is the right size if not now in the next six months] who does not love it. What’s not to love. A decade of having a new car every six months to a year every time you buy another company. Frankly, that’s my only frustration and I hope I have more. Nothing is absolutely perfect.
PracticePanther – web based. By far one of the best explorers of the space. Creative use of third party tools and inventiveness is impressive. Great product, terrific people. They keep raising the bar. It is just very hard to improve on perfection, especially their timer on the iPhone app. Using Panther when you have to charge by the minute is like having SCOTUScast on your iPhone years ago when you needed the high temples glasses with the Zeiss lenses and a second set of ears in order to hear.
RocketMatter – web based. Form follows function in this beautifully designed practice management system. I love the use of color to identify cases. Easy to understand and use. Apparently, I’m the exception, however. The first (and one of only a few) times I quickly sent Alexa a Slack Message when RocketMatter’s integration with Clio was live, they left me hanging. Apparently they were busy with the outpouring of love. Who knew there were so many young lawyers who relied upon Clio. My notes indicate their newest feature at the time did change the world though. Who else offers free tea?
AmicusCloud – web based. We were all pleased with the offering that went out to beta in January. Love the two screen drag and drop feature. Many have waited a long time to see what LexisNexis would do with Amicus after it acquired The Information Architects, the company behind Amicus. My grandfather would have simply said kudos. My grandfather would simply say much improved. My grandfather would say better good, better good, better good, Boston RedSox, World Series Champions, 2004, 2007, 2013, 2018, 2019. UMMMMM, TING.
AbacusNext – hosted. A long time player in the game, their newest offering AbacusLaw is a web based offering in addition their traditional programs. They also offer Office 365 for free for subscribing firms. In case you are wondering, you can get the Microsoft packages without Office 365 but you give up the ability to run 64 bit versions of the programs. I am not a fan got getting rid of file servers and requiring lawyers to learn to use the new Microsoft ribbon. This is a good solution within my model of "Old Gooey New Gooey."
PCLaw and Timeslips – installed/integrated. Their user base is so large that you have to include them. I fear for their future. They both seem dated in interfaces, design concept, user experience and focus. They will find a way to exist, practically forever. My gut tells me a white knight will swoop in but I’d hate to see them broken apart. I know they can be better but the multiples from selling off pieces would be impossible for any sane private equity firm. I believe in the old Wisconsin adage, "Drink more beer."
LexisNexis Practice Edge / PracticeLink – web based. Frankly, I haven’t seen this iteration yet but I’m not a fan of their bundling. Now if they offered me a fair value for all the upgrades I purchased with my predecessor files for the 30+ years I’ve been using the Lexis, I’d consider. I speak negatively about the Standard version and somewhat positive about the premium version. You have to pay a heavy premium for the second level and it isn’t worth it in my opinion when competing product is integrated with Clio. Last I heard Lexis has $40 million a quarter in profit in this product line.
LawToolBox – web based. Very nice product that integrates with Clio and many others. I was very pleased when the Word plugin was upgraded. Best group of folks. I’m still waiting for the iPhone timer. Trust me, I will pay for it I don’t care how much.
Smokeball – installed but web based. Their team knows how to work with small law firms. The more I learn about their offering, the more I like them. In addition, their subscription pricing plan is well thought out. I love the way I can access the system on my iPad as if it were a native app.
Choose your poison.
Leading Legal Research & Document Management Software
The next category of software solutions I tackle is legal research and document management software. These are tools that all lawyers should consider incorporating into their practice to help with everyday tasks. This type of software helps you locate pertinent information (cases, statutes, legal articles) for your practice, and store and organize those files.
For legal research, firms often turn to Westlaw (part of Thomson Reuters) or LexisNexis, the big names in the industry. Both providers claim to offer the most comprehensive online databases of legal resources, ranging from case law to news articles to medical articles. Both also have easy-to-use mobile apps for researching on the go.
Document management and creation software comes in many forms. Some products, such as NetDocuments, take all your files – not just paid subscription legal sources – and put them all in one virtual filing cabinet. Others, like CaseGuard, operate much like a word processor but with advanced filing and organizational capabilities. Many let you save documents to the cloud so you can access them anywhere, on any device. For mass document production, there’s HotDocs, which allows you to merge information you already have (like a client’s name and address) onto forms and templates you’ve created.
Though they don’t handle the organization themselves and focus more on the creation process, Microsoft Word and Google Docs also allow you to create legal forms and transactional documents quickly and with less manual entry than other word processing software. Because these are also word processing platforms, you can use them for any and all of your softer writing needs.
Cutting-Edge Billing Software for Lawyers
When it comes to the money aspect of your law firm, there is a variety of billing software out there to choose from. These programs are geared to help you get paid faster and more efficiently when you invoice your clients. Such things as the ability to time track billable hours, manage client expenses, and automate invoicing are generally key components of any strong billing software for lawyers. Zola has billing software geared towards any law firm that generally has less than 50 employees. The program is cloud based and offers help with organizing client details and provides fast invoicing options. The downside to Zola is that it can take some time to learn how to use the software effectively. It also has a range of other software options that can be integrated with Zola for a fee. Bill4Time is another option that can automate your billing process. It can be used for a wide variety of industry professionals, including architects, engineers, accountants, IT and design professionals, lawyers, and more. Bill4Time has a robust time tracking system as well as the ability to customize invoices and accept payment via credit card through the program. PracticePanther offers billing software for any legal professional. This cloud based software includes a client invoicing feature while also including an online payment option and time tracking for billable hours. The program also includes expense tracking for clients so it is easy to invoice them for those expenses. PracticePanther has a 30 day free trial if you are thinking about trying out their service before making a full commitment.
The Benefits of Law Firm Cloud Solutions
Most of the software solutions available to modern law firms are now cloud-based platforms. In the past, firms had limited options; today, cloud-based platforms are the standard for legal applications and the absolute norm for new tools.
The benefits of adaptation to cloud-based legal management software are numerous.
First, accessibility is unmatched. Anytime, anywhere, you’re able to access your firm’s documents and all related data. More importantly, your entire team has real-time access to that data, including the ability to collaborate across platforms. All this has an immediate and positive impact on productivity, making your entire team more efficient.
Second, virtually all cloud-based software solutions are scalable. Some of them even allow you to literally add or remove seats, depending on your total number of users. If you’ve got 40 staff members, but only use a system for 10 of them , your subscription will reflect just those 10 (and change as your needs evolve).
Third, enhanced security is actually more cost-effective. You’ll still spend money on digital security, but cloud-based law firm software solutions actually allow your spent money to go further, certainly when compared with on-premise software. The savings are two-fold:
1. Cost of the software itself: hosting and licensing are necessarily high when you interface with a local server. With cloud-based solutions, costs are reduced.
2. Security standpoints: several servers are hosted across various locations. Even if a hacker or criminal does manage to compromise one of your servers, the other locations are still safe.
These benefits come at the cost of relying on a third party for your most sensitive information, of course. Your personal choice in this matter ultimately depends on your firm culture, size, and the specific expertise of your IT department, among other factors.
How to Select the Best Software for Your Firm
Choosing the right software for your law firm can help you increase efficiency, improve client relations, and reduce overhead costs. So when it comes to selecting the tools that will power your practice, the choices you make have a significant impact on your firm’s success. But with so many legal technology options available—cloud or on-premises, prepackaged or customizable, all-in-one solutions or specialized standalones—what’s a practice manager to do?
The good news is that there are a few steps any firm can take to select the tools that will be right for them—and make sure they get the most from their legal software investment.
Start by taking stock of your current systems and processes to assess areas that need improvements. Once you know where the pain points are, you can begin to narrow your list of potential software solutions and prioritize your requirements.
Compare software on a point-by-point basis. Look at the features and tools included and determine which ones are most important to you. Make sure you’re comparing apples to apples. For instance, does the product include unlimited cloud storage and backup, or charges per user? Are all the available support resources included in the cost, and for how long?
One of the most important factors to consider when selecting software is how well it will grow and evolve with your firm. For example, are the tools you are considering flexible enough to accommodate changing requirements, and can they easily integrate with your firm’s other applications and systems? Will it be simple to add additional users as needed, or upgrade to a more robust version of a product?
Once you’ve identified the applications that best meet your immediate requirements, do a test drive. Most legal technology solution providers will allow you to perform a free trial of their product over 30 or 60 days, providing you a chance to see how the application works in a real-world environment. Take full advantage of a free trial by making sure you and your staff are using the application to gauge usability and scalability. If product support and training are included in the package, be sure to make use of them.
Keep in mind that the software you select should not only meet your current business needs, but also be able to integrate with your existing digital infrastructure and scale with your firm. The right software combination can be the catalyst that drives greater productivity and profitability.
Law Firm Client Relationship Management Software
CRM, or client relationship management, tools came into existence during sales processes and became more well-known as contact management software. Sales departments use CRM software to manage the stages of their pipelines and client relationships from lead generation to sales closing. In recent years, these tools have become increasingly useful in helping law firms manage their relationship with existing clients.
Your law firm might benefit from a CRM tool if you regularly manage multiple potential clients who are all at different stages of your pipeline, if you regularly have to follow up on leads, or if you need a better way to stay on top of your firm’s client relationships across multiple user accounts. Other law firms might benefit from using a CRM tool to refer potential clients to other lawyers or firms who are better suited to meet their needs.
A growing number of law firms use CRM tools to identify potential future clients based on an existing database of rapidly evolving or changing clients. A CRM in this sense can help your firm keep abreast of client changes and adapt legal services and offerings accordingly.
Future Directions for Legal Software
Although the concept of artificial intelligence (AI) has long been the subject of science fiction writers, it is still the topic of much speculation today in the legal technology realm. The most current thought is that AI could be used for predictive analytics, and that it has the potential to assist lawyers in understanding potential outcomes of cases based on historical data. While the idea is a good one, the potential risks of AI keeping your law firm from pursuing a case far outweigh the benefits. In short, this could lead to self-censorship among attorneys and possibly deny access to justice for many who would otherwise have it. Automation of routine and repetitive tasks is also being considered to replace or enhance the human effort in many law firms. Take document review as an example. Essentially, this is the process of looking for, finding, organizing, and reviewing case documents. It is not difficult. It is just very, very labor-intensive. Computers are being programmed to recognize issues, clauses, facts, and more to take this burden off the shoulders of discovery lawyers. It is an area where coding and big data (or Data Analytics) are also coming into play. Machine learning is an area that will likely burgeon in the next few years and has tremendous potential to help law firms with repetitive tasks as well as more complex functions. Machine learning uses algorithms to receive input data and "learn" from that data. For example, it permits computers to evolve their logic and even adapt through self-improvement. It aims to automate analytical model building, also known as predictive analytics. As I mentioned above, machine learning is also applicable in predictive analytics in the legal world. By analyzing large amounts of data, the legal system can put law firms in position to know the likely outcome of a case by referencing historical verdicts and other data . Machine learning has the potential to radically change how a lawyer prepares for trial. Think about machine learning and artificial intelligence as two sides of the same coin. AI learns from the past while machine learning works toward the future by adapting to new data. AI pulls from the past to see things that human eyes, or simple computers, cannot. And it is the combination of the two that has some so excited about the possibilities in the legal industry. AI may be used to predict winning Judge preferences and, as I have mentioned above, how likely a case is to be successful based on its facts. Machine learning adapts to the present. The Conference on Legal Analytics at Stanford University certainly demonstrated that technology is alive and well in the legal world. Artificial intelligence is being used to analyze contracts, including detection of individual clauses and anomalies, and intratextual analysis of contracts for consistency, duplication, and interpretation. Predictive analytics are also being used to explore the successes of prior cases using deep learning neural nets. Just as other industries have used technology and analytics for years, the legal profession is following suit. The draft "Future Ready Lawyer" report from Thomson Reuters says "Few leaders deny that greater adoption of technology is needed, although many are still cautious about the benefits, justifying their slower movement toward more technology by the fact that they already get the level of quality work they need." Firms need to take the next step and start thinking about technology tools that will complement and enhance the great quality work they already provide. Machine learning, AI, predictive analytics, e-discovery assistance, and the like are on the future-ready horizon.