Flat fee cases can create challenges in reporting because revenue from these matters is not tied directly to time entries, which are typically tracked in reports like the Member Performance Report. This guide walks you through how to set up and report on flat fee cases effectively so you can capture metrics like hours worked, billed amounts, and collections for performance analysis.
Step 1: Understand How Flat Fee Cases Are Tracked
In flat fee billing:
Time entries are still logged but are not automatically tied to the billed flat fee amount.
The flat fee itself is recorded as the invoice amount, while time entries are marked with a Fee Type of Fixed.
By logging time against flat fee matters, you can track work effort separately from the billed amount.
The Member Performance Report tracks time entries only, so ensuring all time for flat fee cases is entered correctly is key.
Step 2: Set Up Flat Fee Cases for Reporting
To track and report on flat fee cases, follow these steps:
1. Create the Matter
Go to a new matter for your client.
In the matter's Header Billing tab:
Set the Fee Type to "Fixed."
Enter the flat fee amount for the matter.
This can be changed at any time.
2. Log Time Entries
Enter all time worked on the matter in the Charges page, just as you would for hourly matters.
The Fee Type for these entries is automatically set to "Fixed."
Use the Show on Bill toggle:
Yes: Displays time details on the invoice (optional, for client transparency).
No: Hides time details from the invoice but keeps them in reports.
Step 3: Use the Member Performance Report
The Member Performance Report will now include the all of the metrics for your flat fee matter including:
Billable Hours: Tracked from logged time entries.
Bill amount: Calculated based on the flat fee.
Billed Time Collected: Recorded when the flat fee invoice is paid.
Effective Hourly Rate: Billed Time Collected / Discounted Hours.
Example Workflow:
Create a flat fee matter and add time entries for the work done.
Generate an invoice for the flat fee amount.
Record payments or adjustments.
Run the Member Performance Report to review metrics.
Step 4: Adjust Reports for Better Insights
To get a complete picture of your flat fee matters:
Use filters in the Member Performance Report:
Filter by Member (e.g., attorney), Matter or Date Range to narrow down data.
Supplement the Member Performance Report with broader financial reports (e.g., Expense Report) to capture non-time-based revenue if needed.
Best Practices for Reporting on Flat Fee Matters
Ensure Time Entries Are Logged:
Even for flat fee matters, time entries should be recorded to track effort and performance.
Mark Non-Billable Time:
Use appropriate non-billable categories for time that doesn't contribute to the flat fee.
Combine Reports for Comprehensive Analysis:
Use the Member Performance Report for time-related metrics and financial reports for overall revenue tracking.
By setting up and tracking flat fee matters correctly, you can ensure your reports reflect both the effort put into the matter and the revenue generated, providing a clear view of performance for your team.