Make Tracking Accruals Less Painful
For many in-house legal teams, the end of a month brings a familiar request from Finance:
"Can you estimate what we owe to outside counsel, even if it hasn’t been invoiced yet?"
That leads to the inbox dive, spreadsheet scramble, and awkward firm follow-ups. It’s not glamorous work - but it is increasingly essential.
In today’s world of tight budgets and increased cost scrutiny, accrual tracking is a critical bridge between Legal and Finance. Done well, it builds trust, improves forecasting, and helps Legal show up as a strategic partner - not a black box of spend.
So let’s break down why accruals matter, where the process usually breaks down, and how legal teams can make it less painful (and maybe even a little impressive).
Why Accruals Matter (Even If You Hate Them)
Legal spend often lags reality. A firm does the work in September… but doesn’t send the bill until late October. Finance, meanwhile, is trying to close the monthly books with as much accuracy as possible.
If you can give Finance a solid estimate of “work done but not yet billed,” you help them:
Book expenses to the correct month
Improve overall financial accuracy
Avoid surprise spikes when invoices eventually land
For Legal, this builds credibility. You show that you’re not just managing risk - you’re managing money.
Where the Process Falls Apart
Despite the value, most legal teams struggle with accruals because:
There’s no standard format for firms to reply with estimates
Outreach is manual and inconsistent, especially across 10+ firms
Law firms are slow to respond, especially if they’re unsure what to send
There’s no centralized system to track who’s replied and who hasn’t
This turns what could be a one-hour process into a two-week headache.
A Simple, Repeatable Approach
Here’s how high-functioning teams approach accruals:
1. Standardize the Request
Send firms a short email with a template that asks:
Matter name
Work completed (but not yet invoiced)
Estimated fees
Expected invoice date
If you want to keep it light, a simple table in the email works just fine.
2. Automate the Outreach
Every quarter (or monthly, if you're ambitious), send the request to your outside firms. You can do this manually, but it’s even better if you can:
Pre-fill the template with each firm’s active matters
Set up scheduled reminders for non-responders
3. Track Responses in One Place
A shared spreadsheet, Airtable base, or tool of choice - anything that helps you quickly see:
Who’s responded
What amounts they estimated
Which matters are missing estimates
This also helps with audit trails if Finance ever asks how you came up with your numbers.
Pro Tips from Teams Who’ve Been There
Start with your top 5 firms. Even partial visibility is better than none.
Build a quarterly habit. Set the calendar reminder now.
Keep it friendly but firm. Outside firms will take it seriously if you do.
Share results with Finance. A simple summary email goes a long way.
Bonus: Scale with a product - if you’d prefer to put this all on autopilot use Poppy or another legal spend management tool.
Final Thoughts
Tracking accruals isn’t the most glamorous part of legal operations—but it’s one of the clearest ways to show Legal is aligned with the business. It demonstrates discipline, predictability, and partnership.
So the next time you get that Finance email, imagine sending back a polished spreadsheet instead of an apology. It’s a small win with outsized impact.
