top tip

TLI Top Tip: Charging Flat Fees? Make sure you are doing it correctly.

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Flat fee billing is where a firm charges a fixed fee for specific services, regardless of the time spent on the matter. Flat fees can be a more convenient way to charge for legal services that also appeals to clients, depending on the nature of legal services provided. Clients like them because they can know with certainty the fee charged for the representation no matter how much lawyer time or effort is involved. If the legal matter ends up taking more time than planned, the client benefits by receiving additional legal services for no additional cost. On the other hand, if the attorney can complete the legal services in less time, then the attorney benefits. Flat fee billing can also simplify billing and collections. Attorneys may also be able to escape the burden of having to track and record their time like they would in an hourly billing situation. 

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