Many entrepreneurs and business owners are not aware of how legal spend management software can save them money. Many managers feel that they don’t need legal software because their company is too small to qualify. This could not be further from the truth. Failing to get the organization’s financial affairs in order can be the downfall of any business, no matter how big or small it may be. However, with more than 80% of smaller businesses having a lawyer on retainer at any given time, there is no reason why you should not take advantage of this technology. In addition to saving you time and energy that is spent managing your contracts manually, these tools offer other features such as contract templates, automated reminders, and alerts when deadlines approach or payments are due. They also provide expense tracking capabilities so that you know what has been paid out in advance versus invoices received and fulfilled. In this article, you’ll discover the 7 important things you need to know about legal spend management software.
1. Keeps Track Of Expenses
This software keeps track of payouts and contracts so you can see exactly how much you disburse on legal matters. This tool can help you better understand your billing cycles and any peaks or valleys in terms of expenditure. It also lets you know what to expect as your company grows so that you do not have sudden budget shortages. This program helps you stay organized and provides comprehensive reporting, which helps you quickly spot high-value, low-cost opportunities to save money. In addition, it can shorten the time it takes a company’s legal department to close costs and invoices, thus allowing them to get back to focusing on core business matters.
2. Identifies High-Value, Low-Cost Opportunities
This software identifies high-value, low-cost opportunities to save money. Legal spending analytics can pinpoint what contracts and expenses are costing a company, thus helping legal departments see where savings could be had. It can help you identify where your company might be overspending or under-budgeting. This software is also a great tool for finding ways to cut unnecessary costs of law-related services. Moreover, it helps a company’s legal department determine whether it is more cost-effective to solicit quotes or renew contracts every year. It empowers the concerned departments with information that can make them smarter and more profitable.
3. Creates And Manages Budgets
This software helps the legal departments of a company to create and manage budgets for specific projects or initiatives. Beyond simply keeping a tab on law-related expenditure, this program also monitors how much time has been spent on various projects. The software provides these departments with the same budgeting tools used by financial managers in other departments. One of the best features of this tool is its ability to generate detailed reports that provide information about how much time has been spent on your contracts and what your budget allocation goals are.
4. Assesses Time Spent On Tasks
Another great thing about this software is that it can help legal departments find out how much time has been spent on various tasks throughout the year. This is an effective tool for lawyers, departments, and law firms to see how much time is spent on legal work. Managers can tell which team members are taking up the most time and see which team members show optimal efficiency, thus allowing them to redistribute workloads accordingly. As explained by the software management specialists at Brightflag, following action-oriented criteria can help companies easily manage their resources. This program will ensure all departments of a company receive an overview of how the employees’ time is being spent and where there are challenges with budgeting. Running consistency reports on legal spend analytics can also be used to make sure law firms are delivering on their promises in terms of turnaround time. This software provides team managers with greater insight into team efficiency and productivity. These insights allow for more efficient and productive oversight of the team as well as advice on legal matters.
5. Oversees Team’s Progress In Real-time
Legal-spending software enables legal departments to stay on top of team members’ progress in real-time. This allows the department to see what members or teams are working on at any given time and the progress that these teams have made. This software connects the management team members to the company’s contracts and tasks to quickly (and efficiently) see where any delays or overspending on authorized services might be happening.
6. Helps To Stay On Top Of Your Company’s Legal Needs
This technology helps departments stay up to date with their company’s needs. Legal departments can set this tool up to help managers see exactly where a company stands in regard to its law-related obligations. Business intelligence data is one of the most useful features of legal spend management tools. It helps companies identify where they may be over or under budgeting no matter what type of law they practice. Law firms can use this service to find out from their clients where exactly the budget is going towards. This puts legal departments to advise clients on ways to save money and cut back on expenses. Managers can also use it to stay on top of sanctioned expenditures for the company. As a result, lawyers can ensure that their clients are getting the best services at an affordable price.
7. Identifies Overspending Or Under-Budgeting
When departments use legal spend management technology, they can identify areas where they are overspending and under-budgeting, making it easier for managers to identify which team members are expending at higher rates than budgets allow. Legal spend is an invaluable resource for any team to use. Managers, in particular, can identify which staff members are overworking and receive detailed reports on staff productivity. It is a good idea for a company’s departments to use this tool that points out which law firms are not subcontracting work or squandering on sanctioned services.
Legal spend management software is a great way to stay on top of your company’s legal needs. It can help you gauge which areas in your company are lacking and where you can cut costs. Investing in this type of advanced technology will also give you an idea of how much time has been spent on various tasks throughout the year and what high-value opportunities exist for spending less money without negatively impacting the end result.