LeanLaw offers two distinct types of fixed fees: Fixed Fees and Completion Based Fixed Fees. Understanding the difference between these two billing methods can help you select the best approach for your firm’s needs.
Fixed Fees
A Fixed Fee is a predetermined charge for a legal service, regardless of the time spent completing the work. This type of billing is often used when the scope of work is well-defined and does not require tracking billable hours. In LeanLaw, these Fixed Fees typically have a specific date when they will be billed.
Use Cases for Fixed Fees
Estate Planning Packages: A law firm may charge a fixed fee for creating a will and trust package, ensuring a clear cost for the client.
Business Formation: Setting up an LLC or drafting incorporation documents can be billed as a fixed fee.
Flat Rate Consultations: Some firms offer an initial legal consultation at a set price without hourly billing.
Recurring Fixed Fees
Recurring Fixed Fees are a special kind of Fixed Fee that automatically repeat at set intervals. This billing method is ideal for ongoing legal work or retainer-like arrangements where services are provided regularly. In LeanLaw, these fees can be set to recur daily, weekly, monthly, quarterly, or annually, automating the billing process for high-frequency projects.
Use Cases for Recurring Fixed Fees
Ongoing Legal Counsel: A startup might pay a weekly fixed fee for regular access to legal advice and document review.
Subscription-Based Legal Services: Law firms offering package deals for small businesses, such as monthly contract reviews or compliance checks.
Continuous Project Management: Legal teams overseeing long-term projects with daily or weekly billing cycles to maintain cash flow.
Completion Based Fixed Fees
A Completion Based Fixed Fee operates similarly to a traditional fixed fee but requires the user to mark the work as "completed" before it is included in billing. This ensures that fees are only applied once the service has been fully delivered.
Use Cases for Completion Based Fixed Fees
Phased Legal Services: If a legal service is delivered in stages, marking completion ensures that the client is billed only when each phase is finished.
Litigation Services: Fixed fees tied to specific milestones, such as filing a motion or completing discovery, can be managed using this method.
Subscription Legal Services: Firms that offer fixed-fee legal services on a recurring basis may use completion-based tracking to confirm work is finalized before invoicing.
Key Differences
Feature | Fixed Fee | Completion Based Fixed Fee |
Requires manual completion | No | Yes |
Included in invoice immediately | Yes | No, until marked complete |
Best for | Standard fixed pricing with specific dates | Milestone-based services based on work completed |
By selecting the appropriate fixed fee structure, law firms can better manage their billing processes while ensuring transparency and accuracy for their clients.