Budgets

In Legalsense it is possible to enter a budget for each matter. A budget can be desirable for several reasons a.o. to see if a matter is still in line financially.

Adding a budget

1. Go to 'Clients' - 'Matters'

2. Select the applicable matter and choose 'Add Budget'.

3. The form below opens

Budget kind

The budget can be based on:

• Hours (all hours or billable only)
• Amounts

For the budget type 'Amounts' there are 2 options:

1. Expected amount
2. Virtual amount

Expected amount

With 'Expected amount' a budget amount has to be specified based on the pricing scheme as it is set on the matter. The budget that is 'Used' is everything that has already been invoiced and the WIP is calculated at the rate schedule that is selected.

Virtual amount

In case of  'Virtual amount' the budget is determined based on the hourly rates as they are set for the employees. The budget that is 'Used' is calculated based on all work at the hourly rate, ignoring any discounts and deductions.

Budget notifications

It is also possible to show a budget warning when 80% and 100% of the budget is reached. 

80% budget reached

100% budget reached

To enable these notifications click the checkboxes next to the `Notify timekeeper` and/or  'Notify matter supervisor`. When logging in the budget alert is visible and it remains until it is clicked away.
Please note that from Legalsense, no further blocking is added to the matter. It is now up to the matter supervisor or firm to decide what the next steps for the matter should be (analyze deviation, adjust budget, renegotiate with client etc.)

4. Click 'Add Budget' and the budget will be added to the matter.

Reporting on budgets

In Legalsense, you can report on budgets via ‘Reports’ - ‘Budgets.’ The report is visible to users with the permission 'view_report',

This report is divided into seven columns: 'Matter Number', 'Matter', 'Submatter', 'Client', 'Budget Hours', 'Hours Used', 'Budget Amount' and 'Amount Used'. Depending on the set filters and availability of the information, empty columns will be left out of the report.

Below, the different columns are explained:

• Matter Number: The number of the matter for which the budget has been created.

• Matter: The name of the matter for which the budget has been created. This is a hyperlink that allows you to click and access the relevant matter.

• Submatter: The name of the submatter for which the budget has been created.

• Client: The name of the client associated with the matter on which the budget has been created. This is a hyperlink that allows you to click and open the corresponding client card.

• Budget Hours: The set budget expressed in hours, when the budget is based on hours for the matter.

• Hours Used: The number of hours currently recorded on the matter, consumed in relation to the total budget.

• Budget Amount: The set budget expressed in amount, when the budget is based on an amount for the matter.

• Amount Used: The amount currently recorded on the matter as fees, consumed in relation to the total budget.

In addition to these fixed columns, you have several filters available to customize the report results as you wish. The filters are explained below:

• Client: Here, you can enter the desired client to filter the results for that specific client.

• Matter: Here, you can enter the desired matter to filter the results for that specific matter.

• Include Budgets on Archived Matters: Here, you can select ‘Yes’ or ‘No’ to determine whether to include budgets on archived matters in your search results.

• Include Budgets on Submatters: Here, you can select ‘Yes’ or ‘No’ to determine whether to include budgets on submatters in your search results. If 'Yes' is selected, budgets for submatters will be displayed as lines in the results.

• Budgets Based On: Here, you can choose from ‘Hours,’ ‘Amount,’ or ‘Both,’ allowing you to filter based on the type of budget set for the matter.

• Budget Status: The options are below -, near- and over budget. Below means everything under 100%, near means everything between 80-100% and over means everything above 100%.

Finally, you also have the option to export the report to Excel using the ‘Export’ button.