Second Opinions

Billing Software Issues for the Mid-Sized Firm

By Phil J. Shuey

THE FOLLOWING is a checklist of primary and critical issues that mid-sized firms must consider when planning a change in their professional timekeeping and billing software:

1. What's missing?

Take a look at your existing software, and carefully consider what you need that is not addressed by your current system. What features or elements are missing in the current software are critical for the current (or prospective) firm management goals and objectives of this software?

Presumably some, or perhaps even most, of the current software features are meeting your needs and are essential for effective administration. Your selection process must determine what should be maintained with a new time and billing software.

2. Is it legal specific?

Is your proposed new software designed for specific use in a law firm, or developed for general sale to any provider of professional services?

3. Conversion issues.

Unless a practical "cut-over" date can be accomplished, or the firm determines that past data can be reduced to hard copy format only, then the issue of conversion of current financial data must be addressed. Conversion is anything but a trivial exercise.

First, your prospective vendor must conduct a test of the conversion process for the firm's data and file format(s). Then you must compare the data in both formats for data integrity and accuracy.

Obtain a written guarantee from the vendor that it will accomplish the conversion in an accurate and timely manner at the agreed cost. Ideally, the conversion should be accomplished before the new billing software is implemented, so that the new system will be "live" with familiar and complete data before the old system is shut off.

4. Training

All software implementations require staff and/or attorney training. This is particularly true in financial software, because accuracy and the timely generation of statements are critical for the health of the firm.

Decide whether you want "on site" or "remote" training. There are advantages and disadvantages to both. On site training often is less costly and more convenient for administrative personnel -- but almost always means you'll face interruptions and spartan training facilities.

Remote training is more "academic" and may provide greater vendor resources for questions, but will involve both costs of transportation and off-site housing -- plus the inherent disruption of administrative functions in the office while training is proceeding. Notwithstanding those disadvantages, the benefits of off-site training are enormous.

A "train the trainer" approach is a viable alternative. It reduces personnel costs and disruption in the office, but inevitably means the prospect of less complete or reduced training for staff trained by the trainer rather than the vendor. In addition, "train the trainer" requires greater demands on the trainer's time, limiting the trainer's regular job availability.

Ongoing Issues

Some ongoing relationship issues must be considered at the outset:

1. Maintenance

Is a maintenance contract available or required? What costs are involved in the contract? What benefits can the firm expect to receive from the agreement?

2. Support

Have you checked out the support operation? What are the hours of support? What is typical "wait" time for telephone support? How knowledgeable are the support personnel? Are there an adequate number of support personnel to answer questions in a timely fashion?

3. Upgrades

What is the upgrade process? How frequent are upgrades? What costs are involved? How long will the vendor support previous versions of the software? Are automatic software upgrades included in a support contract?

4. Staffing

Will the new software impose new requirements for increased I.T. personnel? Will additional or enhanced hardware or software be required? What costs will be involved in any expanded I.T. staff or new hardware or software?

5. Reputation

Finally, carefully evaluate the vendor. Even the best software choice fails, if the vendor is not suitable. The relationship will probably last many years, and the firm must assure a stable and ongoing relationship. First, is the vendor stable? That includes both financial stability as well as key personnel stability?

* Is the software "proven" by a lengthy history? Software with less than five years of history should be viewed with skepticism.

* Does the vendor have a large and strong installed base of customers, preferably for many years?

* Does the vendor have user groups? When and where do they meet? How active are they in assisting the vendor to develop requested changes or enhancements in the software?

* Be careful of being an inadvertant "early adopter." Assure yourself that the firm will not be an undisclosed "beta" site for new or substantially revised software.

* Always obtain references. Check the references, recognizing that the vendor has probably only provided positive references. Would the referred firms deal with the vendor or obtain the same software again?

Billing software is one of the most important firm administrative decisions. Investment of the time to consider these issues will maximize the likelihood of an excellent decision.

Phil Shuey is president and C.E.O. of Shuey Robinson, a consulting group based in Greenwood Village, Colo. He splits his practice between technology consulting and general law practice.