Utilization Rate: Why It’s Important And How A Law Firm Can Improve It


Utilization Rate: Why It’s Important And How A Law Firm Can Improve It

Nearly every industry uses the word "utilization rate," but it has a slightly different connotation in the legal field. A KPI used in legal firms to t

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Nearly every industry uses the word “utilization rate,” but it has a slightly different connotation in the legal field. A KPI used in legal firms to track time spent on billable and non-billable tasks is the utilization rate. The utilization rate will be high if team members spend more time on billable tasks, increasing cash flow. 

The utilization rate shows where your time is being spent. Gaining more understanding of how your company operates will improve your capacity to make data-driven decisions and boost profitability. The time that an attorney spends working on duties for clients is measured in billable hours, for which the law firm may charge. Non-billable work, on the other hand, includes unpaid indirect responsibilities for a company, such as researching administrative duties or prospecting for new clients. Maintaining a manual check on this is difficult. To handle this, cutting-edge attorney-client management US visa status tracking software would be ideal.

How a Law Firm Can Increase Utilization Rate

The practice area, firm size, level of experience, location, and other factors can all have an impact on the utilization rate of a law firm. To have a thorough insight, you can look at the data trend to see how other law firms in your practice area operate. According to Statista data, the average utilization rate for law firms in the US was around 31% in 2021.

  • Law Firm Must ensure Accurate Time Tracking

Accurate time monitoring is the first step in increasing the company’s utilization rate. The process of keeping track of time can be difficult and prone to human error. Lawyers who don’t record their hours until the end of the day run the danger of missing up to 10% of their billable time, which also means losing money, according to a study by the American Bar Association. To track time more precisely, you can use  US visa status tracking software integrated  with a time-tracking tool.

  • Automatic Billing

To increase utilization rate, cut back on time-consuming, non-billable tasks like invoicing. By automatically creating invoice templates based on chargeable activities and sending out automated reminders, legal invoicing software streamlines the process.

  • Remove Obstacles To Client Payments.

Without the proper tools, processing payments and reporting might take a long time, reducing your utilization rate and billable hours. Your company can lower payment barriers by providing online payment options. Accepting payments by credit, debit, and Automated Clearing House (ACH) options provides clients with a quick and easy method of paying you and is quickly emerging as the industry norm. The law company can take online payments effectively with the help of attorney-client management software like Imagility.


The business’s profitability is impacted by the utilization rate. The utilization rate needs to be increased by law firms employing current technology. Imagility is a immigration application tracking software programme that helps businesses streamline their immigration processes. To add more functions, you can also incorporate other essential legal applications.