Why Corporate Legal Departments Need to Track Legal Spend
Posted by Legalease Solutions on 5 Aug, 2021
Without a legal spend management strategy in place, firms might be paying 5% to 10% more each year, in undetected costs. When attorneys are paid according to their “billable hours” it’s imperative that these precious hours of legal work are safeguarded. It’s one thing to note expenditures to outside counsel, and another thing altogether to track legal spend, manage, and budget wisely.
How can general counsel incorporate tools that actively account for and categorize where money is spent on legal matters? A legal spend management strategy helps manage accounts and control budgets for maximum transparency.
Legal spend management strategy
Corporate counsel are attached to a company that will demand a detailed financial report to account for money spent on outside counsel services. This report could contain expenditures, where money was spent on legal matters and budgeting, among others.
Unlike exclusively using e-billing software that is restricted to generating invoices, legal spend management makes it easier than ever to see exactly where money goes and where the bulk of that money goes. This creates financial metrics which are converted into usable chunks of data in analytics. With legal spend analytics, it’s easier than ever before to understand where money could be redirected.
Benefits of a legal spend management software
In addition to streamlining your legal spend and managing it, legal spend management software comes with functionality that is designed to improve financial efficiencies.
One central location that captures, analyzes, manages, and stores legal spend and budgeting.
- Legal costs forecasts
Legal spend management software can predict future scenarios in terms of budgeting and offer valuable decision making inputs with predictive analytics.
- Expense trackers
Legal spend numbers on a screen allow you to see exactly how much went where.
Why you need a legal spend management strategy
By implementing a legal spend management strategy into your legal department, you’ll notice much more robust workplace transactions and spending habits. With money being spent wisely, there will be far fewer squabbles (and grudges), and efficient use of money.
Holds teams accountable
Legal teams can see which areas deserve a bigger portion of the budget, and which ones can be minimized or axed. Teams can work towards a single goal instead of splintering because of budget disputes.
Spending protocols enacted
When money is allocated to teams or individuals from the get-go, it’s easier to manage expenses. In turn, accountability reaches an all time high when you know who spent what where, and can help your team make better informed spend choices.
Foster better relationships when financials are transparent
No more finger-pointing when tech accounts for every dollar spent. When legal spend is visible and transparent, everyone wins in the legal department. The team dream can be reset and reached better when everyone is aware of the financials.
With legal spend management, you can take the guesswork out of legal expenditures. A reliable legal spend management solution will save you thousands of dollars that could be redirected to more fruitful ventures!
LegalEase Solutions offers your legal department payment management solutions so that you can keep an eye on your expenditures, minimize overpayment, and enforce budget controls.