What to put on a legal invoice
Clients pay legal bills more readily when they can see what was done and why. A good legal invoice includes:
- The client and matter — name and matter number
- The billing period
- Time entries: date, a clear description, who did the work, hours and rate
- Flat or fixed fees, if you charge them for a stage of the work
- Costs advanced, such as filing fees, couriers, transcripts and expert fees, separately from fees
- Retainer or trust funds applied, and the balance still due
Example legal invoice
| Line item | Qty | Rate | Amount |
|---|---|---|---|
| 10/02 – Review contract draft and client email (hours) | 1.2 | $325.00 | $390.00 |
| 10/06 – Call with opposing counsel re: indemnity clause (hours) | 0.4 | $325.00 | $130.00 |
| 10/09 – Revise agreement; prepare redline and summary (hours) | 2.5 | $325.00 | $812.50 |
| 10/14 – Paralegal: assemble execution copies (hours) | 0.8 | $140.00 | $112.00 |
| Cost advanced: state filing fee | 1 | $150.00 | $150.00 |
| Cost advanced: courier | 1 | $38.00 | $38.00 |
| Total | $1,632.50 |
Time is entered in tenths of an hour (0.1 = 6 minutes), the convention most firms use. If you're applying funds held as a retainer, enter the amount under Amount already paid and say in the notes where it came from.
Good time-entry descriptions
"Research" says little; "Research enforceability of non-compete under state law for employment agreement" tells the client what they're paying for. Avoid block billing — lumping several tasks into one entry — because clients and courts often push back on it.
Retainers and trust accounts
Advance fee deposits generally have to be held in a client trust account and only moved to your operating account once earned. The rules vary by state bar, so follow your jurisdiction's trust accounting rules and show on each invoice how much of the retainer was applied. Your fee agreement, not the invoice, sets the rates and terms.
Taxes for solo attorneys
If you practise as a sole proprietor, bar dues, malpractice insurance, legal research subscriptions, practice-management software, CLE and office costs are business expenses. Law is a "specified service" for the 20% QBI deduction, which shrinks at higher incomes — tick the box in our 1099 tax calculator to see the effect.
Frequently asked questions
Should I bill in 6-minute increments?
Tenths of an hour are the most common. Whatever you use, apply it consistently and say so in your fee agreement.
How do I show costs I paid for the client?
List each cost advanced on its own line, at what you paid, and keep the receipts. Some firms send a separate statement of costs.
Can I bill flat fees and hourly on the same invoice?
Yes — list the flat fee as one line and hourly work as time entries, as long as your fee agreement allows both.
Is this a substitute for billing software?
For a solo practice with a handful of matters it works well. Firms with many matters and trust accounts usually need dedicated legal billing software.