What is LEDES Billing?
LEDES (Legal Electronic Data Exchange Standard) billing is a standardized, globally accepted electronic billing process for the legal industry, facilitating the exchange of billing information between law firms and corporations. It uses UTBMS (Uniform Task-Based Management System) codes to categorize tasks and expenses, ensuring consistency and clarity in invoices.
How does LEDES Billing work in CARET?
LEDES Billing works much like regular billing, but there are differences. Instead of Time being organized by a Work Type, you will rely on UTBMS Codes.
More specifically, Activity (A), Task (L), Expense (E), Project (P), Bankruptcy (B), or Counseling (C) codes.
What Set Up is Needed?
1) To use LEDES Billing in CARET Legal, you will need to activate this feature in Firm Settings> Billing Options.
In Firm Settings, you will need to select one or more of the UTBMS Codes you will reference when billing to Matters. You will also be asked for your Firm's Tax ID #.
Lastly, you will see a drop-down asking you to choose a naming convention for the LEDES text files you will export for upload to your 3rd party billing sites.
2) Check your User Settings to make sure your profile meets the required LEDES Billing Fields.
While your Default [Billing] Rate is the first place the system will look to calculate your time. This number may be overwritten by Rate Cards or User Rates set in Matter Options. (You may want to add that Rate Cards are the easiest way to make sure the LEDES matter are billed correctly)
3) Once this option has been enabled in Firm Settings, you will need to elect the use of LEDES Billing at the Matter Level.
This can be done when you open a new Matter:
Or after a Matter has been opened on the Matter Options tab:
As a best practice, and where applicable, fill in Law Firm ID with the billing platform and LEDES Client Matter ID. Taking this time to fill out the 4 boxes will lead to fewer rejections and invoice upload errors. Most will require the Client Matter ID field filled in as well. Where applicable, check box to Enable Budgeting, as this will monitor excessive spending that could result in rejections.
Now that you have established these settings, you will see LEDES billing in your Time and Expense Entry modals.
For additional assistance, please contact our Support team or book a Billing & Accounting Q&A Session with one of our Trainers.