How to invoice for legal services

A legal bill is the only invoice in this family governed by professional conduct rules as well as by contract. Client money is held separately from the firm's, and the invoice is what moves money from one to the other — which is why its layout is not merely a presentation choice.

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Client funds and firm funds are different money

An advance held in a client trust account belongs to the client until it is earned. The bill is what earns it: it states the work done, and only then may the corresponding amount be transferred out. Billing after the transfer inverts the rule the account exists to enforce.

Show the trust position on the bill

  • The trust balance at the start of the period
  • Any funds received into trust during it
  • The amount applied to this bill
  • The trust balance carried forward
  • The balance now due from the client, if the trust did not cover it

Time entries a client can read

Each entry carries the date, the timekeeper, the time in your stated increment, and a description that says what was produced rather than what was done — "drafted and circulated settlement agreement" rather than "attention to file". Entries a client cannot interpret are the ones that get challenged in bulk.

Disbursements are advanced, not sold

Filing fees, court reporters, expert fees and courier costs are money you paid on the client's behalf. They belong in their own section, at cost, separate from fees for your time — a disbursement mixed in with fees looks like a markup even when it is not.

Say what the fee arrangement is

Hourly, flat fee, contingency or hybrid — the bill should make it obvious which, because each produces a different-looking document and a client comparing one to the last needs to know why they differ.

Start from the legal services invoice template

Common questions

Is a retainer the same as a deposit?
Not quite. A retainer held in trust remains the client's money until it is earned against a bill. Terminology and the rules around it vary by jurisdiction, so follow your own bar's guidance rather than general practice.
Can I bill for time spent preparing the bill?
Most firms do not, and many engagement letters exclude it. If you intend to, say so at engagement — discovering it on the bill reads badly out of all proportion to the amount.
How detailed should time entries be?
Detailed enough that the client can see what was produced, without disclosing anything privileged to whoever else may read the bill. Insurers and corporate clients often set their own billing guidelines; those override your house style.

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