Legal E-Billing: Common Challenges and How to Solve Them

Legal e-billing is now a key part of how modern law firms and corporate legal teams manage billing and payments. These systems help law firms create and send invoices in digital formats, often in line with each client’s specific billing rules, such as Outside Counsel Guidelines (OCGs).

While legal e-billing platforms offer better efficiency, faster payments, and improved transparency, they also bring unique challenges. These issues are both technical and process-related and need the right setup, consistent internal practices, and ongoing monitoring to avoid problems.

This blog outlines the most common legal e-billing challenges law firms face, and how to solve them using simple systems, smarter processes, and better communication.

1. Inconsistent Compliance with Outside Counsel Guidelines (OCGs)

OCGs are detailed billing instructions from clients that include rules about billing formats, approved hourly rates, allowed expenses, and how work descriptions should be written. Not following these rules is one of the main reasons invoices get delayed or rejected.

This often happens when billing teams manually interpret OCGs or when the billing software doesn’t flag non-compliant entries. To avoid this, firms should store OCGs in one central location where both billing staff and systems can access them. Most importantly, billing software should be set up with client-specific rules to check entries before invoices are submitted. Reviewing and updating OCG settings every few months helps firms stay aligned with any client changes.

2. Timekeeper Role and Rate Issues

When timekeepers are billed under the wrong role or with the wrong hourly rate, invoices often get rejected. This usually comes from using outdated rate sheets or not updating matter-level timekeeper assignments.

To fix this, firms should keep an up-to-date list of timekeepers, their roles, and approved rates. Billing software should flag entries with incorrect rates and stop them from being submitted. It's also important to limit who can enter time and check time entries regularly to make sure they follow client rate agreements.

3. Missing or Incorrect Task Codes (UTBMS)

Many clients require invoices to include standard codes, called UTBMS codes, that show what kind of legal work was done. Missing or incorrect codes often cause delays or rejections.

This usually happens because lawyers aren't trained to use these codes, or because the billing software doesn’t require them. Firms can solve this by making code selection mandatory during time entry, limiting available codes to those approved by the client, and using invoice formats (like LEDES) that require proper coding. Validation tools can check codes before submission to catch mistakes early.

4. Problems with E-Billing Portal Submissions

Many clients ask law firms to submit invoices through outside e-billing systems like CounselLink, TyMetrix, or Serengeti. Errors like missing matter IDs, wrong file formats, or invalid codes can stop invoices from being accepted.

To prevent these issues, firms should check each client’s technical requirements ahead of time and follow a checklist for every invoice. Test files can be run through these systems before submission to catch problems. Keeping track of client-specific changes in a shared log also helps avoid future errors.

5. Delayed Internal Invoice Approvals

Invoices often get stuck in internal approval steps, which causes missed deadlines and slow payment. This happens when the approval process isn’t clearly defined or when staff need to manually route invoices.

To fix this, law firms should set up automated invoice approval workflows that send invoices to the right people based on the client or practice area. Built-in reminders and escalation alerts help keep things moving. Using a dashboard to track where each invoice is in the process can also speed up approvals and reduce bottlenecks.

6. No Exception Reporting or Alerts

Without reports that highlight errors or issues, billing mistakes can go unnoticed until clients push back. This lack of visibility often results from infrequent audits or not having the right reporting tools.

Firms should create regular reports that flag billing rule violations, such as incorrect codes or rate mismatches. Dashboards can show trends across timekeepers or departments. Monthly reviews and simple internal audits help catch repeat issues early and support better billing habits.

7. Block Billing and Poor Descriptions

Clients often reject invoices that use block billing (grouping multiple tasks in one entry) or that have vague time entries. These billing styles don’t provide the detail that clients expect.

To reduce these issues, firms should train lawyers to enter each task separately with a clear description. Billing systems can be set up to detect and block billing. Requiring a minimum word count or key phrases in narratives also improves clarity.

8. Old Billing Systems That Don’t Support Modern Formats

Some law firms still use outdated billing systems that don’t support current formats like LEDES 1998B or LEDES XML 2.0. This leads to extra work formatting invoices manually or delays in submission.

Upgrading to billing platforms that support multiple LEDES formats and allow firms to build templates for different clients is key to staying compliant. A checklist for each format makes it easier for billing teams to double-check their files before sending them.

9. Lack of Training and Process Knowledge

Even with the right systems in place, staff need to know how to use them correctly. Many billing problems happen simply because users haven’t been properly trained or don’t have access to updated documentation.

Firms should offer regular training sessions for attorneys and billing staff. Creating a central place for how-to guides, billing policies, and client-specific rules helps reduce errors and build a consistent billing process across the firm.

Final Thoughts

Legal e-billing brings a range of challenges, but with the right tools, training, and processes in place, firms can solve them effectively. From enforcing OCG compliance to reducing delays and billing mistakes, a smart approach to legal billing improves accuracy, speeds up payments, and builds stronger client relationships.

Firms that invest in better billing systems and workflows report fewer invoice disputes, faster collections, and better financial outcomes overall.

If you’re looking to improve your billing process or fix common legal e-billing challenges, contact us today. We’ll help you reduce billing errors, speed up approvals, and increase your firm’s revenue.