This article provides an introduction to the popular features found in practice management software. This article first appeared in Small Firm Business Fall 2004.

Molly Kilmer Flood, M.L.I.S, Research Specialist

Do you think that law office technology is exclusively for large firms? The truth may surprise you. Small firms have strength in numbers. According to the American Bar Foundation’s 1999 Lawyer Statistical Report, attorneys who work in small firms (2-20 attorneys) or are solo practitioners comprise 76 percent of all attorneys in private practice. Thanks to this commanding majority, legal technology providers have many products available that cater to the needs and limited budgets of solos and small firms. If you are looking to expand your law office technology roster, practice management software is one of the best technology investments for any sized law firm. Practice management applications can take your office from paper clogged to (relatively) paperless in a few easy steps.

Practice management software is a “law office in a box” that organizes your legal front and back office. What’s the difference between that and case management software? Case management software provides attorneys with a shared database containing all case- and client-specific information, conflict of interest searching, office-wide calendars, and task management systems.

Practice management programs take the software a step further. In addition to those features, practice management systems typically include office accounting tools, time and billing software, and customer relationship management (CRM) features. Despite these differences, the terms “practice management” and “case management” are often used interchangeably. Don’t get too bogged down by the terminology. Choose your practice management tool by the features it offers and not by its software category or descriptor.

Are you or your firm ready to take the plunge? Your first step is to meet with all potential users of the software to assess your technology wish list. What processes would you like to automate? What features (design, compatibility with other software systems, etc.) have you liked or disliked about other software systems? Practice management software is priced from $100 to $600 per user. Before making such a large purchase, it is important to take the collective pulse of your firm. Make sure most or all potential users of the software are involved in each step of the decision making process. Your fellow attorneys and staff are the best judge of what software will work in your firm environment. The following is a shopping list detailing important features of practice management software. A good practice management application should have all or most of these features.

1. General Guidelines. Any application you choose should have an intuitive design and be easy to navigate. Many practice management software programs boast the same Windows based design found on the Microsoft Office and Corel Word Perfect programs. This organizational method is familiar to most and will help new users navigate the new software and locate its key features. Be sure that the software places a strong emphasis on security. Each user should receive an individual password and be required to use it every time he or she accesses the software. Administrators and/or billing partners should also be able to restrict user access to sensitive, confidential or case-specific information. Also don’t forget the everyday useful tools: The spell-checking feature should be available in all areas of the software and the software should be able to synch with PDA devices (Palm, Handspring, Blackberry).

2. Contact & Client Database. The data entry form should be comprehensive. It should include fields for Social Security Number, names of spouse and children, e-mail address, Internet address, bank account numbers, and properties owned. The backbone of practice management software is its database. All of your firm’s information is stored in one single database. Make sure that new clients, matters, or contacts only need to be input once. This important information is now available for any future database search. Conflict of interest checking is a must. By entering all prospective adversaries and all case-related parties into the database, you can significantly reduce the possibility of a conflict and a possible malpractice case. Forms should also be available so users can summarize and archive their notes from meetings, phone calls, depositions, or other important events. Don’t overlook the fact that the software must work with your firm’s word processing program. This cooperation allows you to index all pleadings and case correspondence on the system. Users can also access these documents directly from the practice management system. If they fill out the pop-up form that appears when saving a document in Microsoft Office and Corel Word Perfect, all future searches for case-related materials would include these key documents. Full text searches should allow for advanced and Boolean searches (AND, OR, NOT). See if Customer Relationship Management (CRM) is available. For each contact, users have access to their contact information, phone calls made to them, upcoming meetings, documents referencing them, etc., on one page. Some responsive data entries may have been misspelled. Systems should allow for partial name searching. A search for “Mc” should yield all of the Mc surnames stored in your database. No wildcard should be necessary.

3. Court Rules. Systems are preprogrammed with court rules for all U.S. jurisdictions. Enter the court date or discovery deadline on the system’s calendar and all other court dates, statutes of limitations, and other court deadlines and events are calculated for you. Users receive e-mail alerts for all upcoming court and case deadlines.

4. Calendar & Tasks. Applications should be equipped with a firm-wide calendar. All attorneys and staff should enter all work tasks, appointments, meetings court dates, and vacation days. This will also allow colleagues’ schedules to be viewed by all system users, taking the guesswork out of meeting planning. Supervisors or individual users are able to create and receive alerts for upcoming work deadlines. These alerts should be automatically archived for billing purposes.

5. Time & Billing. Check to verify that time entry forms contain fields for client number, matter number, name of biller, date, time spent on task, activity or task code, and task description. Systems should also be equipped with task timers. Users activate the timer after beginning a conference call, meeting, or other task — taking any guesswork out of billing. Look for software that supports a variety of billing options including: task-based, hourly, monthly, flat, and on contingency. You’ll also want to know that billing statements can be customized to include your firm’s logo and other firm-specific information. Other important factors: Clients have the option to pay by credit card; bills can be sent electronically; users can keep track of past due bills; and a system keeps an archive of bills sent

6. General Ledger. Be sure that users are able to track the financial status of every current matter and can ascertain if certain bills have been paid. A report feature should also allow you to create spreadsheets that detail billing or expenses by attorney, practice, or the firm as a whole. Of course you should be able to create and cut checks. Make sure that the office accounting tools can be customized to fit your firm or vendor’s billing schedule. Other factors: Real time access to your firm’s bank balances; and access to relevant tax forms.

7. Software Integration. The system should integrate will your office’s existing software. (Insist on a trial run before you commit to a purchase.) Make sure you check to see if the software will work with your firm’s hardware and operating system.

8. Training. Several options should be available, such as online, telephone, or on-site training classes for the firm’s staff. Many vendor also offer a help line or a fee-based technical support package. Also verify that the software’s Web site has a comprehensive customer support area.

Practice management software is an excellent way to organize your entire practice under one virtual roof. These products, however remarkable, are only as good as the information they store. You need to be confident that your firm will embrace this technology. Make sure that there is enthusiasm about this technology and that users receive proper training and support during the roll out. Have regular user meetings to discuss problems, suggestions, or shortcuts. Before you know it, you’ll be flexing your technology muscles.

* Mention of a company, product, or service does not indicate endorsement or support by the American Bar Association or the authors.