How LEDES Formatted Invoices Can Improve Efficiency, Quality and Speed of Payment
How are your invoices looking these days? If you haven’t given consideration to the formatting of your invoices, now may be the time.
Invoice formatting falls into two categories: non-LEDES and LEDES. Non-LEDES invoices require manual processing and validation and could include a mixed bag of formats, such as PDF, MS-Word, image files, etc. A LEDES invoice, on the other hand, is a standard law firm file format that allows for automated processing. All modern law firm practice management software systems support LEDES invoices, and 65% of invoices are using the LEDES format.
While several legal bill review firms have implemented this practice for years, many law firms are still lagging in migrating to a standard invoice format. In working with our customers, we’ve seen widespread benefits that come about as a result of adopting the LEDES format, such as:
#1: Identify Errors and Get Paid Faster
If you could benefit from quicker turnaround of submitted invoices, you are in the right place. LEDES files can be more easily validated upon submission providing law firms quick feedback when errors are encountered. Errors with non-LEDES files cannot be recognized until the data has been organized in a structured fashion and processed. LEDES invoices allow law firms to address billing issues immediately and ultimately get paid quicker.
#2: Achieve Billing Accuracy
Human error leads to inaccuracies in the billing process. LEDES files retain the original data integrity as they were submitted by the law firm removing the margin for error.
#3: Improve Efficiency
By utilizing the LEDES format, you will remove manual processes from your billing program, allowing your firm to shift focus to more strategic client and firm initiatives.
Embracing LEDES is an opportunity for law firms to leverage standardization and automation to accelerate invoice turnaround, reduce errors and spend more time on high-value activities. Are you looking to learn more about ways to improve legal spend management through accuracy and efficiency? We can help, get in touch here.
Editor’s Note: This post was originally published to the Quovant site. After the 2022 Mitratech acquisition, the content was moved to the Mitratech site.