LeanLaw separates how work is billed from how effort is measured, so you can understand profitability and pricing accuracy without complicating client invoices.
This article explains what Fixed Fee time is, when to use it, and how it supports smarter fixed-fee pricing.
What Is Fixed Fee Time?
Fixed Fee time is time logged for work that is covered by a flat fee.
This time:
Does not increase the client’s invoice
Is used for internal reporting and profitability
Helps evaluate whether your fixed fees are priced appropriately
Clients see only the agreed-upon flat fee. Your firm still sees how much work went into earning it.
Example: Fixed Fee Time in Practice
Your firm charges a $3,000 flat fee for a business formation.
Your team logs:
8 hours of document drafting (Fixed Fee time)
4 hours of client meetings (Fixed Fee time)
Client invoice shows:
Business Formation Services — $3,000
Internally, you can see:
If your matter rate is $250/hour, the work equaled $3,000 in time value—confirming your pricing was accurate.
If the same work had taken 18 hours, you’d know this type of engagement may be underpriced.
How to Log Fixed Fee Time
Logging Fixed Fee time works like any other time entry, with one key difference.
Create a new time entry
Select the appropriate matter
Choose your activity or task code (if applicable)
Set the billing type to Fixed Fee (this will default to Fixed Fee if the matter is type Fixed Fee)
Choose the fixed fee to log the time to (this is important if you have multiple fixed fees on the same matter)
Enter hours, description, and date
Save the entry
The time is recorded for reporting and profitability, but it does not create hourly charges on the invoice. The client is billed only for the Fixed Fee entry.
Fixed Fee Time vs. Billable Hourly Time
Choosing the correct time type is essential.
Use Fixed Fee time when:
The work is included in a flat fee
The client should not be charged based on time
Use billable hourly time when:
The work falls outside the fixed-fee scope
The client should be billed based on time and rate
Key rule:
If the client pays the same amount regardless of time spent, use Fixed Fee time.
💡 Hybrid billing is normal. A single matter can include both Fixed Fee time and billable hourly time.
How Fixed Fee Time Appears on Invoices
By default, Fixed Fee time entries are included on invoices alongside the Fixed Fee line item.
The Fixed Fee appears as a single flat-fee charge
Related Fixed Fee time entries may appear as supporting detail
Time entries do not change the amount due
This allows firms to show work performed while still billing a flat amount.
Hiding Fixed Fee Time on Invoices (Optional)
Firms can choose to hide Fixed Fee time entries so clients see only the flat fee.
When this option is enabled:
The invoice shows a single Fixed Fee line item
Fixed Fee time remains fully tracked internally
Clients do not see individual time details
This is a firm-level preference and does not affect reporting or profitability.
For setup details, see How to Hide Fixed Fee Time on the LeanLaw Invoice.
Using Fixed Fee Time for Profitability
Fixed Fee time allows LeanLaw to show you whether your pricing is working.
What You Can See
Time invested vs. fee charged
Marginal profitability percentage
Marginal profit amount
Matter profitability
Example:
Flat fee: $4,000
Hours logged: 20
Standard rate: $250/hour
Implied cost at standard rate: $5,000
This matter generated -$1,000 in marginal profit, indicating the flat fee is underpriced relative to the work performed.
Over time, Fixed Fee reports help you identify:
Which fixed-fee services are most profitable
Where effort is consistently underestimated
How to adjust pricing or scope going forward
Fixed Fee Time and Completion-Based Billing
If you use completion-based fixed fees:
Time is logged as work progresses
The fixed fee is billed only after the work is marked complete
All logged time is available for reporting—even before billing
This lets you track effort and profitability in real time, without waiting for invoicing.
Best Practices
Track time accurately — even when it doesn’t affect the invoice
Use consistent activity codes to identify where time is spent
Review profitability regularly (monthly or quarterly)
Switch to billable hourly time for work outside scope
Set internal hour budgets to catch scope creep early
Common Questions
What happens if I log more time than expected?
The client still pays the fixed fee. Reports will show whether the work was underpriced or over-scoped.
Do I need to track time if the fee is fixed?
Yes. Without time data, you can’t evaluate profitability or improve pricing.
Can I bill hourly for work outside the fixed fee?
Yes. Additional work can be logged as billable hourly time with client approval.