Legal Spend Management | Benefits of ELM | RazorCube

Legal Spend Management – Simplified

“Until today, operational competence was barely the standard. Today, as companies are expected to deliver at the highest levels, legal departments must do their share to deliver service optimally and be run like a business, develop strategic plans, thoughtful budgets, implement efficiency enhancing tools, develop talent, leverage knowledge management, manage vendors, and do so much more.” – CLOC

What is legal spend management?

If your law firm is engaging with outside counsels to take care of its legal dealings, you are going to incur certain costs. The expenses that can be attributed to this are counted under the “Legal Spend Management”. It is nothing but the handling of the expenses of external counsels. Legal spend can include various aspects of money management – identifying cost reduction opportunities, gaining more visibility into spends, projecting and controlling budgeting, raising invoices and much more.

Why is legal spend management important?

Money is the driving force of any business and making profits is the outcome. It is no trade secret that the flow of money in your business needs to be supervised well. With a well-monitored legal spend management, the firm is able to gain insights into how, where, when and for what is its money being exactly used.

Large or medium size law firms, must generate, process and close thousands of invoices on a regular basis. And when these processes are managed manually, there is a high risk of the staff becoming overburdened- leading to daunting amounts of human errors.

A curated legal spend management software adds value back to main business functions by automizing mundane administrative tasks – billing, invoicing, spend analysis, payment tracking and much more.

What are some major challenges in legal spend management?

  1. Build Visibility : Corporate legal spend stretches across multiple verticals – encompassing dozen law firms, thousand of cases and zillion invoices. Tracking such dynamic process is a neck-breaking task – more so if you are operating manually.
  2. Predicting Future Spends : It is often expected for the legal teams to predict and drive their teams’ expenses. But having limited transparency about pricing can and billing models can make it tough to achieve this goal effectively.
  3. Choosing Resources : Engaging the right people, to do the right work at the right rate, is a pain for all legal departments. Taking up this task without detailed data, makes this quite a n expensive slippery slope.
  4. Administering Controls : Having structured billing guidelines, properly set budgets, and having insights on pricing are pillars of an intelligent legal spend management. Manually verifying all these invoices is a task that weighs high on time.
  5. Reviewing Performance : Since law is a vast filed with numerous nuances, it is tough to compare quality of work and its ROI across different vendors. Absence of the right reporting tools within many in-house legal teams only complicates the workflows ahead.
  6. Improving Productivity : There is no way to improve the overall functioning of the in-house legal teams without effective and proper systems and technologies in place. This luddite approach can hamper the work of legal spend management and can robe the team of valuable time and focus.


Will using an ELM help in predicting legal spend accurately?

Enterprise Legal Management (ELM) software is an impressive platform that gives the law departments the ability to put together their claims, contingent liabilities, fees, court expenses and other payables. With the compiling powers of a software at your disposal, creating accurate budgets becomes a rapid task.

ELM also does a detailed analysis of the spends and presents you with actionable insights. This keeps the department updated about the fund’s allocations and usage.

If you are planning to buy an ELM to streamline your spend management, make sure you watch out for these features


Power of Analysis :

Gaining proactive analysis of spends is a critical function that will give your legal departments an edge over their counterparts in determining an outline of your entire spend portfolio. You can even compare, and index spends in comparison to the previous years. This will surely give you insights for accurate predictions with almost zero errors.

The digitization of the entire process drastically reduces the strain on resources and generates more rapid outcomes. An ELM that is well tuned to provide you with


Ease of Data Accessibility :

Tracing the future can be done accurately if one is aware of the past. Having access to historical data from different timelines, matters, claims, expenses, contingent liability schedule, etc is a critical test for a good ELM software.

Having historical data at your disposal will make it effortless for you to chart down the steps for future budgeting with a clear view of where to start.


Offer Clarity :

With actionable insights at your fingertips, a wise ELM software empowers you with insights into crucial data. Studying these will assist you in figuring out about cost-saving opportunities, funds allocation and much more.


Key Takeaways

Money is the driving force of any business and making profits is the outcome. It is no trade secret that the flow of money in your business needs to be supervised well. With a well-monitored legal spend management, the firm is able to gain insights into how, where, when and for what is its money being exactly used.

Large or medium size law firms, must generate, process and close thousands of invoices on a regular basis. And when these processes are managed manually, there is a high risk of the staff becoming overburdened- leading to daunting amounts of human errors.

A curated legal spend management software adds value back to main business functions by automizing mundane administrative tasks – billing, invoicing, spend analysis, payment tracking and much more.

  • Management of legal teams spends on external counsels is referred to as “Legal Spend Management”
  • Manual management of processes relating to spends, can rob a business and its legal department of valuable time, money and resources
  • Automizing the spend process can significantly reduce the strain on the legal team, and streamline the operations
  • An effective ELM tool should be able to:

For a Good Enterprise Legal Management (ELM) Software, contact PracticeLeague now and find out how they can help you.

Share Post :