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    ForbesAdvisor - The Best Legal Billing Software Of 2022

    Legal Tech: What We Learned in 2022 (and How to Use it in 2023)

    What We Learned in 2022 (and How to Use it in 2023)
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      When it comes to preparing your firm for the year ahead, knowledge really is power.  

      As part of our commitment to delivering best-in-class client support, we're sharing the lessons we've learned in 2022—plus tips on how to apply them. If your resolutions include the words “efficiency” or “profits,” grab a pen, pull up a seat, and get ready to make 2023 your year!   

      2022’s takeaways 

      Like any year, 2022 threw a unique set of challenges at the legal industry. As we enter the new year, law firms need to be prepared to surmount: 

      • A changing hiring market 
      • Potential impacts of an economic recession 
      • The long-overdue game of operational catch-up 
      • Break-neck digitalization of attorneys’ daily tasks  
      • And more 

      But if this year brought anything into focus, it’s that law firms’ COVID-fueled adoption of technology led to some major improvements. But there’s still work to be done—only 35% of legal professionals believe that their organizations are prepared to keep up with the industry’s ongoing digital transformation.  

      Of particular concern? The efficiency and profitability of internal operations.  

      Fee setting in a shifting economy  

      As economic experts warn of a potential recession, many firm leaders are placing a spotlight on maintaining profitable rates. At the same time, clients increasingly expect firms to provide more modern and flexible payment options. The popularity of alternative fee arrangements—such as flat fees, payment plans, and subscription fees—is growing rapidly as a result.  

      But the success of such fee arrangements hinges delicately on firms’ productivity.  

      A vast majority of law firms operate under the mounting pressure of a higher cost structure. To strike the right balance between protecting profits and meeting clients’ needs for affordable legal services, data-driven pricing structures are more relevant than ever.   

      To achieve this, business intelligence is key. Key performance indicators (KPIs) like Average Case Unit Value (ACUV), Throughput Rate (TR), and Cycle Time are invaluable to helping firms understand both their current earning potential and how to make pricing decisions that maximize it in the future.  

      Tech makes billing and collections better  

      In 2022, the pandemic-triggered trend of improving billing and collections processes has shown no signs of slowing down. In fact, 73% of large firms added to their billing and collections staff this year. While having extra hands on deck can be helpful, legal technology is helping firms with lower headcounts get paid. 

      To err is human, but legal-specific billing software can identify common billing errors before invoices are sent, helping firms avoid costly invoice rejections.  

      And while the legal staff behind the screen still need a basic understanding of LEDES billing codes, trust accounting compliance, and other industry-specific billing rules, software certainly makes things simpler.  

      The ability to create automated recurring billing and payment plans—and run payments for those plans in batches—has revolutionized tech-forward firms' billing cycles. Thanks to increased efficiency, your firm could see payments in as few as twelve hours. This shift in cash flow may act as a shield against economic uncertainties in the year ahead.

      The Small Firm’s Guide to Big Tech

      While any change in how you operate your law office can feel overwhelming, there’s never been a better time to start migrating your office structures online. Big tech changed the game in how we run our everyday lives, so stay up to date with the latest available software solutions to keep clients happy.

      Workflows (finally) join the 21st century 

      To say that the legal world has been slow to adapt to a changing technological and consumer landscape would be an understatement. The industry is so steeped in tradition, in fact, that a majority of attorneys still use at least one analog workflow on a regular basis.   

      Fortunately, 39% of firm leaders intend to undertake the process of optimizing internal workflows and processes in the year ahead. The sooner, the better—considering that efficient legal project management is more crucial than ever to lowering overhead costs and maximizing billable hours.  

      For many firms, the ticket to higher productivity depends on developing workflows that link attorneys to the right resources at the right time.  

      The wisest firms will leverage practice analytics to locate silos that slow down legal work, followed by implementing practice management solutions to achieve these goals by adopting largely automated workflows. Features like matter templates, Kanban boards, rules-based calendaring, and more will work in tandem to reduce the mental load of basic case management and enable attorneys to channel their focus toward skill-based tasks.

      Cloud-based tech balance talent troubles 

      The great resignation hasn’t been all bad for the legal industry , but it has changed the way firms attract (and retain) talent. With one recent study predicting that 58% of law firm lawyers are “somewhat likely” to leave their current position in the next year , leaders should pay heed to attorneys’ greatest demand—work-life balance.  

      Hybrid work is no longer negotiable for many attorneys. 72% want to work remotely at least part-time 

      Firms that are hoping to cut costs may find this a relief. Throughout the year, many discovered that downsizing office space can be an excellent way to save money and right-size staffing—without compromising security or productivity.   

      Cloud-based legal practice management software allows for remote collaboration and cloud-based documents, and client management platforms grant attorneys access to a database of client information—from home, the office, or the courthouse.  

      The end result: better business continuity and a more agile way of working. And while many critics express concern that cloud-based legal tech isn’t compliant, most cloud-based solutions are actually more secure than their on-premises counterparts.  

      Move your firm forward with Rocket Matter 

      In the words of Richelle E. Goodrich, “Knowledge gained is as useless as pride if filed away and never applied.” Which leads us to the all-important question: where do we go from here?  

      While legal technology can fortify your firm for the future, it’s not enough on its own. Creative leadership and an openness to change are essential to your firm’s success in 2023. With an adaptable mindset and the right tools at your disposal, you might find that your firm enjoys a significant competitive advantage in 2023.  

      The future is promising for firms that use Rocket Matter. See how our software leads to higher profits, happier clients, and future-proof workflows. Schedule a free demo to get started today!  

      The Small Firm’s Guide to Big Tech

      While any change in how you operate your law office can feel overwhelming, there’s never been a better time to start migrating your office structures online. Big tech changed the game in how we run our everyday lives, so stay up to date with the latest available software solutions to keep clients happy.

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