Future-Ready Firms: Key Learnings from the Enhanced Timekeeping & Billing Strategies Masterclass

For many law and accounting firms, operational efficiency is often seen as a back-office concern. 

But as Atty. Jay-Ryan Trinidad, Director of Legal and Compliance at Sprout Solutions, pointed out in the Future-Ready Firms: Enhanced Timekeeping and Billing Strategies for Business Growth webinar, this mindset is outdated. 

Operational efficiency is not just about cutting costs or saving time. It can be a powerful engine for business growth and stronger client relationships. 

In his talk, “Unlocking Operational Efficiency for Sustainable Growth,” Atty. Jay shared how optimizing internal processes improves service delivery, and elevates your firm’s value in the eyes of clients. 

Joining him was Geoffrey Ogang, CPA, VP of Finance at Sprout and Founder of Magnus Consultancy. His session, “Improving Timekeeping and Billing in Your Professional Services Firm,” explored how better billing strategies can drive profitability for accounting and legal firms. 

Here are the key takeaways from their sessions.

Atty. Jay stressed the importance of accurate timekeeping as a priority for firms in the professional services industry. 

Challenges Firms Face in Timekeeping and Capturing Billable Hours

Atty. Jay also touched on some of the common challenges with timekeeping, which are:

• Manual Processes and Task Duplication – doing timekeeping and billables manually makes them prone to errors and inaccurate reporting 

• Resource Misallocation and Timeloss – inefficient processes can lead to delays in approval of invoices, which in turn affects clients’ budget cycle. When this happens, clients have less time to settle their invoices, which can impact their cash flow and strain their relationship with your firm
• Delays from Inefficient Approval Flows – some firms have several layers of approval, which greatly slows down the release cycles of their invoices. While this practice is intended to thoroughly review the billables, they are not the best use of high level employees (especially for smaller firms with limited manpower). 

Atty. Jay then discussed some best practices for improving timekeeping, which include:

• Automate Time Tracking – automation ensures more time is spent doing actual work. According to Atty. Jay, manual time tracking can take up to 5%-10% of a legal or accounting professional’s work day, resulting in up to 5% revenue loss for the firm. 

• Standardize Billing Practices – this creates predictability in billing cycles, which reduces the likelihood of client disputes 
• Clarity in Billings and Deliverables – time tracking provides clarity to the number of hours worked, especially when the phase-in charges are proactively explained to the clients. 

Atty. Jay shared an important reminder that doing good work is not enough to stand out anymore. 

“Every firm is expected to provide quality output to clients,” he explained. “That’s a given. But our customers also judge us based on their entire experience with us.”

He cited a PWC 2019 study that found only 32% of professional services firms focus on improving the client experience, which is a missed opportunity. 

Many firms mistakenly equate efficiency with just delivering work faster. But Atty. Jay emphasized that clients value more than speed. They want consistent quality, scalability, and meaningful interactions. 

The ultimate goal? Building trust. As Atty. Jay put it: “Clients want to feel we care about their success. And that we’re with them for the long term.”

Finally, Atty. Jay wrapped up his talk with a call-to-action: company leaders should see operational efficiency as a client-centric strategy. 

He emphasized 3 key actions on how to start making this change:

• Audit and Optimize Regularly – constant reviews of processes help identify bottlenecks, and addressing even small ones can compound into big productivity gains in the long run 

• Embrace Technology – be open to adapting tools that streamline repetitive tasks, as they help improve not just speed, but accuracy. 

• Foster a Culture of Efficiency – leaders should embrace a culture of efficiency by turning it into a company-wide priority, instead of just delegating it to the HR and Finance departments.

The next speaker was Geoffrey Ogang, who’s also from Sprout and is the founder/CEO of Magnus, a consulting company. His talk focused on finance, and the key insights he gained from running his firm. 

Why Effective Billing Strategy is Important

Geoffrey highlighted that cash flow problems are the number one reason small businesses fail. This is why effective billing strategies are critical. They help ensure a steady, predictable flow of income. 

“Cash is king,” he reminded attendees. It is what keeps a business running and enables future growth.

Another thing Geoffrey highlighted was the unseen aspect of billing as a communication tool. He explains: “A billing statement shows the client what services you are providing them, and in some cases, which areas you can improve on.” 

In short, a well-crafted billing statement communicates your firm’s value. Clients will use it to judge whether your services are worth what you charge. 

Common Billing Mistakes to Avoid 

Geoffrey proceeded to list some common billing mistakes in the professional services industry. These include:

• Inaccurate or missing invoice details, incorrect tax calculations, and failure to apply agreed upon discounts or promotions
• Ambiguous payment terms and no due date
• Failure to follow-up on overdue invoices
• Double billing or charging for rendered services
• Not using contracts or clear agreements
• Lack of consistent billing cycle
• Not tracking time accurately for hourly billing
• Missing payment history and proper documentation
• Failure to communicate changes in billing or basis in billing
• Lack of late fees or penalties for overdue payments

Geoffrey also shared billing strategies that not only improve cash flow, but can give your firm a competitive advantage:

Streamline and Automate Billing Processes

Geoffey advised that billing software can be leveraged to automate invoicing, payment reminders, and late fees. They are also great for recurring billing arrangements, as they reduce the need for manual work. 

He also recommended software integration as a huge time saver, as it allows your firm to sync billing with CRM and accounting tools for efficiency.

Clear and Transparent Communication with Clients

Geoffrey recommends making detailed invoices with a breakdown of the services rendered (including clear descriptions) to make it easy for clients to see what you’re billing them for. 

Additionally, he said that clear payment terms and due dates helps set expectations upfront, and allows you to charge for late payments, if necessary. 

Proactive Collections Strategies

Another key recommendation from Geoffrey is to build a system that regularly follows up on upcoming and overdue payments. Have a clear escalation process (such as offering payment plans) for late payers.

Legal action should always be a last resort. Clear communication and transparency help avoid reaching that point.

At this point, Geoffrey concluded his talk, and questions were gathered from the audience while he briefly touched on the services offered by Magnus Consulting.

The webinar wrapped up with an insightful Q&A. Here are two highlights:

Q: Given that we are a project-based service, can we still use or benefit from timekeeping software?

Atty. Jay answered: “Yes, project-based professional service firms don’t require accurate time tracking applications, as it’s not a core part of their process. However, the principle of measuring operational efficiency remains the same.”

“So in this case, you can still use project management tools to track the overall progress of the project, but more in terms of running costs and deliverables rather than hours rendered. Because at the end of the day, you want to ensure the effort and resources being utilized will lead to profitability.”

Geoffrey also added: “Actually, I also had the same concerns when I started using these tools. That’s because I don’t bill most of my clients per hour–I charge them on a retainer. Thankfully, you can set up Sprout Keeper to track milestones. You just need to input the details, and support that with attachments to ensure transparency on both sides.” 

Q: How Can Firm Leaders Effectively Drive Change When Addressing Operational Inefficiencies?

Atty. Jay answered: “First off, it’s important to remember that people are resistant to change because of the disruption it brings. So focus on the benefits to your team’s workflow, so that they can see why this change is worth the trouble. You can start small, like sharing how automation frees them from dull, repetitive admin work.”

He adds: “Also, getting their buy-in is important. It’s important to ask them about identifying inefficiencies in your firm’s processes, so you know which problems they need help solving. By making them accountable to this effort, they become more likely to support your initiative as a solution to their concerns.” 

As Geoffrey highlighted, “Embracing change in established processes is hard, and sometimes, even painful.” 

The sooner firms automate and adopt smarter tools in today’s digital-first world, the more competitive they will be.

Sprout Keeper makes it simple to get started. With it, you can streamline timekeeping and billing for greater accuracy and faster turnaround, while helping you deliver better service to clients.

Its real-time dashboard gives you valuable insights to track progress and make smarter business decisions.

Finding more ways to future-proof your firm? Explore our blog, our latest thought leadership content, and upcoming events. 

Or contact us today to see how we can help you optimize timekeeping, billing, and operational efficiency.