Key Details in Billing Guidelines for Better Invoice Data

This is the second in a series of posts based on our whitepaper, “Legal Billing Guidelines in the Age of AI.” In this post, we cover key information you should require in your invoices to ensure your team can strategically manage spend.

Are your legal invoices telling the whole story? Vague descriptions like "Legal research" or "Analysis" make meaningful review difficult and hinder strategic decision-making. To truly understand and manage legal spend, you need quality data, and that starts with clear expectations in your billing guidelines.  

Effective guidelines should demand more than just "sufficient detail"; they need to set specific standards for both narratives and data structure.  

1. Narrative Standards:

• Be Specific: Require descriptions that clearly state the task performed. Instead of "Research legal issue," aim for "Research Kentucky case law on strict liability standards for manufacturing defects in medical devices."  

• Add Context: Encourage narratives that explain the "why" behind an activity when appropriate.  

• Ensure Consistency: Use similar terms for similar tasks across time entries and invoices to enable better analysis.  

• Prohibit Block Billing: Each time entry should represent a single task, not multiple activities lumped together so you can understand how much time was spent on each.  

2. Data Structure:

• Standardize Fields: Require consistent formats for matter names/IDs, timekeeper information (name, title, rate), and expense entries.  

• Use Classifications: Mandate the use of relevant codes (like UTBMS task codes, or internal classifications like business unit) to structure data for analysis.  

• Detail Rates & Discounts: Ensure agreed-upon rates, discounts, or special arrangements are clearly itemized.  

By setting clear standards for invoice data and narratives in your guidelines, you transform invoices from mere payment requests into strategic assets. This detailed, structured data fuels better spend analysis, informs smarter decisions about outside counsel, and is foundational for leveraging legal spend management tools effectively.

For a comprehensive guide on creating your billing guidelines as well as our sample billing guidelines template, see our Legal Billing Guidelines in the Age of AI.