A lawyer invoice is a business document that represents a formal request for payment sent to the client, ensuring prompt payments and optimal cash flow. It’s also a communication tool that reflects a lawyer’s identity and professionalism, helping them build rapport and long-lasting relationships with the clientele.

This article explores lawyer invoices in-depth to help you understand exactly what they are and how you can make them. We’ll go through all the information that a legal invoice should have, different types of these documents, and the best practices for writing them.

What Is a Lawyer Invoice?

A lawyer invoice (also referred to as an attorney invoice) is a formal document that a lawyer or a law firm issues to a client to request payment for services rendered. Its main purpose is to clearly and accurately present the work performed and associated costs. This is done through detailed breakdowns of activities, related rates, subtotals, and a total amount due.

Compared to general business invoices, a lawyer invoice is usually more detailed. Lawyers often provide comprehensive descriptions of their activities and legal tasks accompanied by time entries and references to cases. This level of transparency is essential to ensure clients understand what they are paying for.

Like other invoices, this type of invoice must also comply with legal standards and align with the terms of the client agreement to avoid surprises, questions, and disputes. More than that, lawyers must follow specific billing practices to issue payments while meeting rigorous ethical standards for attorneys and other legal professionals.

What Should Be Included in a Lawyer Invoice?

Let’s take a look at the information that should be included in every professional lawyer invoice.

#1. Lawyer or Law Firm Name, Address, and Contact Details

Your invoice should prominently display your name or your firm’s name, your address, and contact details (typically an email address and a phone number) at the top of the document. This information is critical, as it helps the client identify who sent the invoice. Plus, it provides them with the necessary details in case they want to contact you with any questions.

To emphasize branding and strengthen the impression that your lawyer invoice has, you can add your logo next to this part.

#2. Client’s Name and Case Reference

After adding your information, you should list the client’s details in the same manner. Include the full name of the client and their contact information. This, along with an invoice number and date, helps both parties verify the invoice and store it in their records appropriately.

It’s also good practice to include a specific case reference number or name, as that is another way to enhance record-keeping and make the document easily identifiable. This is especially important when you have multiple ongoing cases with one client.

#3. Description of Legal Services Provided

An itemized description of legal services you provided is the central part of a lawyer's invoice and its most important section. You need to provide a detailed breakdown of your work in the form of a list, where every item for which you bill your client should be a separate entry.

Furthermore, each entry needs to come with a detailed description of your activities, corresponding rates, and calculated subtotals. Instead of vague explanations (e.g., “Legal research”), you should be more specific and refer to concrete actions (e.g., “Legal research on precedent X”).

This helps justify the costs, which is important when working with clients who have little to no knowledge of the legal sphere.

#4. Billable Hours and Hourly Rate

As mentioned, every item in the list of rendered services should come with a corresponding rate. This will usually be an hourly rate, which is then multiplied by the corresponding number of billable hours.

Since many lawyers bill in increments, which are shorter than an hour (e.g., in six-minute or 0.1-hour intervals), this should be clearly communicated in advance and mentioned on an invoice. Full transparency is critical to avoid confusion, questions, and potential disputes, all of which can delay payments.

#5. Subtotal, Taxes, and Total Amount Due

When you multiply an hourly rate for a task by the number of billable hours, you get a subtotal for that item. Then, you should add any applicable taxes and other fees before summing everything up to reach the total amount due.

This figure should be prominently displayed, usually in a larger font size or a bold typeface. If the client has a retainer, your lawyer invoice should show the starting balance, the drawn amount, and the remaining balance.

#6. Payment Terms and Accepted Payment Methods

Lastly, your invoice for legal services needs to clearly detail the payment terms and your accepted payment methods. It’s common to use one of the net terms or to specify an invoice due date. When listing accepted payment methods (e.g., bank transfer, check, or online payment portal), add the necessary information the client needs to make the payment.

Types of Lawyer Invoices

There are several different types of lawyer invoices that feature distinct structures based on the billing arrangements with the clients.

#1. Retainer Invoice

A retainer invoice is used when a client sends a payment upfront to ensure lawyer services for a future period. These payments are usually deposited in trust accounts against which lawyers bill their hourly work.

As a result, a retainer invoice will often include the amount in the trust account, how much was deducted, and the remaining retainer balance instead of just a total amount due.

#2. Flat-Fee Invoice

A flat-fee invoice is usually used for cases that have clearly defined scopes and there’s no anticipation of unexpected circumstances. Some examples include drafting wills and uncontested divorces or handling simple traffic tickets.

A flat-fee billing model offers predictability to clients, maximizing the chances of smooth payments. The lawyer charges a single fee for the rendered services, which is predetermined and typically communicated to the client in advance, as the scope of work is known from the get-go.

#3. Hourly Invoice

An hourly invoice is one of the most common billing methods in the legal profession. It represents a flexible arrangement where the client is billed for the total number of hours the lawyer has worked on their case. This number of hours is then multiplied by the predetermined and agreed-upon hourly rate.

This arrangement allows lawyers to fully dedicate themselves to a case, regardless of the amount of time it takes to be resolved, without worrying about remaining underpaid. However, they need to meticulously log and explain every task performed and the time spent to justify their charges.

#4. Contingency Fee Invoice

A contingency fee invoice is common in civil litigation cases (e.g., personal injury). It represents a form of arrangement where the lawyer is paid a percentage of the amount awarded in the case, should they win. If the lawyer loses the case, they typically aren’t paid anything.

This invoice is typically sent upon a successful outcome. It should detail an agreed-upon percentage used to calculate a lawyer’s fee, as well as the exact sum that the client needs to pay.

How to Make a Lawyer Invoice

There are several ways to make a lawyer invoice, including creating it from scratch or using a law firm billing template (e.g., a Word template or an Excel template). These methods are acceptable for an occasional invoice, but they can be time-consuming and prone to errors.

If you create a moderate to high number of invoices per month, and you want to ensure maximum accuracy, consistency, and a professional look, you should use legal billing software or a dedicated invoice generator.

Instead of following a random legal invoice example and manually inputting all information and performing calculations, you can use these specialized tools to make the generation process quick, easy, and precise.

Here’s a step-by-step guide on how to use an invoice generator at Paystub.org:

• Head to the invoice generator on the website.

• Choose an invoice template based on your requirements and aesthetic appeal. Some lawyer invoice templates also offer several color options.

• Fill out the form by following the user-friendly instructions on the page. Software allows you to effortlessly number your invoice, add a date, choose a tax type, and calculate subtotals, discount types, and totals.

• Review your invoice to see what the final product will look like and make any potential adjustments.
• Check out to download a finished document that you can send to the client.

4 Best Lawyer Invoicing Practices

Now that you know what to include in a lawyer invoice and how to write the document, let’s take a look at the best practices that will ensure the most professional outcome:

• Be precise when tracking time. If you’re using an hourly invoice, it’s imperative to track time meticulously. You should establish a dedicated system that will record all billable hours and associated tasks in real time. That way, you’ll ensure that you’re paid adequately while being able to substantiate all charges.

• Be detailed with descriptions. When describing your work and charges, use simple and descriptive language. Avoid jargon that may confuse the client, and don’t use vague descriptions (e.g., instead of “Drafting documents,” specify which documents you were drafting). The easier the clients understand the charges, the faster they will pay.

• Send invoices promptly and consistently. You should send invoices soon after you’ve completed the work, or at the agreed-upon date. If you’re sending invoices to clients regularly, establish a consistent billing cycle so that they know when to expect them. This helps you optimize your cash flow and allows clients to budget more easily.

• Offer multiple payment options. You should always make it as easy as possible for the client to pay you. The more options you give them, the higher the chances that the transaction goes smoothly. Try to include a variety of options that range from checks and credit cards to online payment platforms.

Final Thoughts

A clean, structured, and well-written lawyer invoice is fundamental for a successful law practice. It’s a document that facilitates timely payments from clients, ensuring you have a steady and predictable income. On the other hand, it communicates your work and explains the charges to ensure full transparency with clients.

Due to its precise nature, you should always double-check the document before sending it. Verify that you’ve included all the necessary details and that charge descriptions are informative and easy to understand. To make the creation process as smooth as possible, don’t forget to give our lawyer invoice generator a go!

Lawyer Invoice FAQ

#1. Are lawyer invoices legally binding?

Lawyer invoices aren’t legally binding on their own, but they can become legally enforceable if they are tied to an agreement made between the lawyer and the client. If a dispute arises, an invoice can serve as evidence for the provided services and the owed amount.

#2. How can I make my lawyer invoice look professional?

You can make your lawyer invoice look professional by using a clean and well-organized layout. For improved branding, you can add your firm’s or personal logo and tagline. Finally, make sure that the document has all the necessary information, that it’s clearly sectioned, and that there are no mistakes.

#3. What is the difference between billable and non-billable hours?

The difference between billable and non-billable hours is that the former refers to the time spent directly on the client’s case. The latter is used for miscellaneous work that ranges from administrative operations to networking, promotion, and professional development. It’s critical to distinguish between the two and avoid adding non-billable hours to a client’s invoice.