How to manage File Budgets in Law App

A file budget lets you track the time recorded on a matter against the fees you quoted the client. You can set a simple fee limit on the file, or split the matter into phases with their own estimates if you quoted it that way. Law App shows your progress as you go and changes colour as you approach the limit.

Simple budget

Fee limit

One figure for the whole matter: the professional fees quoted to the client. All time recorded on the file counts towards it.

Staged quote

Phases

Break the matter into stages, each with its own estimate, dates and status. Use your own custom phases, or your firm’s standard phases for that area of law.

Set up firm-wide phases and fee limit alerts

These settings are optional and apply across the firm. Set them up once, and they’re ready whenever someone adds a budget to a file.

Standard phases for each area of law

Go to Settings > Budgets > File Budget Groups. You’ll see a list of areas of law.
Click the area you want to add phases to.
Click Add standard phase for each phase, enter its name and default estimate, then save.

File Budget Groups settings page with the Family area expanded, showing seven standard phases with their default estimates and the Add standard phase button highlighted

Editing a list later only affects phases picked from it afterwards. Files that already use a phase keep the name and estimate they were given.

Firm-wide fee limit alerts

Go to Settings > Budgets > Fee Limit Alerts.
Enter a Warning threshold % (the file turns amber) and, if you want a second level, a Final threshold % (the file turns red). Leave the final threshold blank to use a single alert.
Click Save.

Fee Limit Alerts settings page with a warning threshold of 90 percent, a final threshold of 95 percent, the Draft hold switch turned on, and the Save button highlighted These thresholds apply to every file with a fee limit. You can set different levels on an individual file when you need to.

Tip: Thresholds are a percentage of the fee limit and can go above 100. For example, set 110 if you only want the final alert once a file is 10% over its quote.

How to set up a budget on a file

Open the file and go to Financials > Budget.
Click Set fee limit to add the quoted fees, and Add phase if you want to split the matter into phases.

Budget tab on a file under Financials, showing No fee limit set with the Set fee limit button, and an empty Phases section with the Add phase button

Using your firm’s standard phases: if your firm has set up phases for that area of law, you’ll see an extra option to add the standard phases. You can use the firm’s list, set up your own custom phases, or mix both.

Set the fee limit

Enter the Fee limit (quoted).
Enter your own Warning threshold % and Final threshold % for this file, or leave them blank to use the firm’s settings.
Click Save.

Set fee limit form on a file with a fee limit of 5500, a warning threshold of 85 percent, a final threshold of 95 percent, and the Save button highlighted

Add phases

Click Add phase and enter the Phase name.
Add the Estimate, Start date and End date where they apply. You can leave the estimate blank if the stage hasn’t been estimated.
Click Save. Repeat for each phase.

Add phase form on a file with the phase name Pre-contract negotiations, an estimate of 2000, a status of In progress and a start date entered, with the Save button highlighted Each phase also has a Status: Not started, In progress, Complete, Skipped or Not applicable. Set it when you add the phase, and update it at any time as the matter moves along.

Status drop-down on the Add phase form, open to show the options Not started, In progress, Complete, Skipped and Not applicable

How time is tracked against file budgets

When you record time on a file with phases, Law App puts the entry into the current phase automatically. Without phases, all time simply counts towards the file’s fee limit.

To move an entry to a different phase, click the Phase field on the timesheet entry and pick another one.

Timesheets list on a file with the Phase column highlighted on an entry, and the Fee limit progress bar in the side panel showing 600 dollars of 5500 dollars recorded The Fee limit bar in the side panel shows how much of the budget has been used. It turns amber at your warning threshold and red at your final threshold. On the Budget tab, each phase shows its estimate, the actual time recorded, and how far over or under the estimate it is.

When a file reaches its fee limit

If your firm has turned on Hold new time as draft on files at their final threshold (in Settings > Budgets > Fee Limit Alerts), an orange banner appears once a file reaches its final threshold. New time can still be recorded and saved as draft, but it can’t be finalised for billing until someone reviews the limit.

Budget tab on a file at 120 percent of its fee limit, with an orange banner saying the matter has reached its fee limit as quoted, a red progress bar marked Fee limit exceeded, and a Void draft hold, allow finalising button

Edit limit if the client has agreed to further work (see below).
Void draft hold, allow finalising lets time be finalised on this file without changing the limit. The over-limit status stays visible.
Change exempts the file from the draft hold, or holds it, regardless of the firm setting.

Nothing is lost. Time is always recorded. The hold only stops it being finalised for billing until the limit has been reviewed.

How to edit a budget on a file

Open the file, go to Financials > Budget, and click Edit limit.

Enter the new fee limit and a Reason for the change, then click Save.

Change fee limit form with a new fee limit of 7500 and the reason Further work outside of original scope, with the Save button highlighted The Budget tab now shows the Original quote next to the Current limit, with who changed it and when. Click Edit history to see every change.

Budget tab showing an original quote of 5500 dollars, a current limit of 7500 dollars and 6600 dollars recorded to date, with the Edit history link highlighted

Fee limit history window listing each change with the date, who made it, the old and new limit, and the reason