Summary
The holiday season often leads to a drop in billable hours for law firms due to fewer working days, court closures, and delays in opening new cases, but it can still be managed strategically. By adjusting billable targets, planning around PTO and court schedules, accurately capturing all billable time, prioritizing high-value work, reducing billing errors, and communicating clearly with clients, firms can minimize revenue loss and use the slower period for year-end planning and process improvements with the help of time-tracking tools like LawBillity.
Holiday Slowdowns vs. Billable Targets: What Law Firms Can Do to Stay on Track
The holiday season is a joyful time for most people, but it also brings plenty of stress. Among the stresses law firms face is the tendency for billable hours to collapse during the holiday season. Among the reasons for this are:
- Fewer Billable Days on the Calendar – Given the holidays that are on the calendar in late November and early December, law firms must face the reality that there are fewer billable days at the end of the year than there are during other times.
- Courts Slow Down During This Time – The courts are often closed (at least temporarily) during the holiday season, which means fewer cases come through the doors.
- Pushback Against Opening New Cases – Many attorneys also wish to avoid opening new cases during the holiday season. They don’t want to get entangled in new things during a busy time of the year.
Even though this is a slow point of the year, there are some steps that any law firm can take to make the most of this time of year.
Step 1: Reassess Billable Targets for Holiday Weeks
It is time to step back and reassess the goals for billable hours during the holiday season. It is necessary to consider how weekends and known holidays will affect the impact. The slower pace of things means most goals will need to be adjusted downward. If you are realistic with yourself about what is possible, you won’t be disappointed by what happens.
Step 2: Plan Workloads Around PTO and Court Closures
Try to schedule your employees’ availability as early in the season as possible. The sooner you know what kind of availability you will have from your various employees; the sooner you can adjust schedules and expectations. Here are some things to remember:
- Assign coverage for important matters.
- Determine which employees will be available when.
- Examine court schedules and understand when you can take matters to court.
Here are some things you should consider when examining the PTO and court closures situation at the end of the year.
Step 3: Capture Every Billable Minute Accurately
This is the time of year when you need to be particularly careful about measuring and capturing every billable minute that you can. There are no moments that are insignificant when you are down to this time of the year, and you need to record all that you can.
It is ideal to use real-time tracking and even minute trackers to accurately reflect all the time spent working on various cases. You don’t want to guess your billable hours at a time like this. Instead, try to get a down-to-the-minute capture of the actual times.
Step 4: Prioritize High-Value Legal Work
Put an emphasis on the high-value work that you can do every day. This is to say that you should devote as much of your time as possible to the tasks that generate the most revenue. There are plenty of low-value or mundane tasks that must be taken care of as well, but it is probably for the best that you focus your energy on the things that truly bring in the dollars during this time.
Step 5: Reduce Write-Offs and Billing Errors
One step every law office can take immediately is to reduce any billing errors on the books. This is to say that this work should NOT be put off until the end of the month. Instead, it is time for the office staff to start reviewing the records they currently have access to and begin identifying errors now.
It is also useful to standardize billing terms across the office, as this allows for faster billing entries in the future. A standardized system like this means staff will not have to guess how to enter different types of billable hours.
Step 6: Communicate Expectations with Clients
Effective communication with clients should be a year-round practice for law offices. This is particularly true during the holiday season, as certain scheduling matters need to be addressed with those clients right away. The role of the law office during this time is to do the following:
- Create Realistic Timelines That Clients Can Understand – Provide realistic timelines for when work will be completed and communicate them to your clients.
- Check Court Schedules – You don’t want to overpromise anything to your clients, so make sure you know what the court schedules are and how that will impact your ability to handle their cases.
- Retain a High Level of Trust While Billing for All of Your Hours – It is essential to maintain high levels of trust with your clients while billing them for all the time you spend on their case. You want to collect all that you are owed while also helping your clients understand what they are being billed for.
Step 7: Use Holiday Downtime Strategically
While things are a bit slower around the office, you can use this time to plan your next moves strategically. This is to say that you can use less busy times to create a comprehensive schedule for yourself and so much more. It is a great time to conduct billing reviews, clean up any outstanding invoices from outside vendors, and prepare for what lies ahead.
Step 8: Leverage Time Data for Year-End Planning
Finally, consider using the holiday season to review trends you have seen in previous holiday seasons and how they might impact your operations going forward. It is a great way to stay honest with yourself and manage your expectations.
How Legal Time Tracking Software Supports Holiday Success
LawBillity makes your end-of-year billing processes much easier. You will be able to process invoices faster, see holiday trends from years ago, and generally take a lot of the stress off your shoulders as you work on clearing up and cleaning up your end-of-year processes.
Instead of burdening yourself with worry about managing your end-of-year processes, why not simply take advantage of the benefits LawBillity can offer you? Start a free 14-day trial today and start the new year off with improved productivity.
FAQs
Why do billable hours typically drop during the holidays?
Billable hours often decline due to fewer working days, court closures, and attorneys delaying the start of new cases.
Should law firms adjust billable hour targets during the holidays?
Yes, reassessing and lowering targets to reflect holiday schedules helps set realistic expectations and reduce frustration.
How can firms make the most of fewer billable opportunities?
By prioritizing high-value legal work, capturing every billable minute accurately, and reducing billing errors.
Is the holiday season a good time for internal planning?
Absolutely! Slower periods are ideal for reviewing billing processes, cleaning up invoices, and planning for the new year.
How can time-tracking software help during the holidays?
Tools like LawBillity ensure accurate, real-time tracking, faster billing, and better insight into year-end and historical billing trends.
