What Is a Legal Management System?

A legal management system (LMS) is a solution — typically software — that supports law firms in their legal workflows and procedures. Sometimes referred to as legal case management software, an LMS is a popular way for law firms to track time, handle billing processes, communicate with clients, or easily access important client documents. And the best legal case management software packages all these essential functions into a convenient, all-in-one solution.

Especially for a small-to-midsize law firm, a management system must be efficient with the firm’s time and money. Read on to learn about what a legal case management system is and how law firms today benefit greatly from using legal management system software.

What Is a Legal Matter Management System Used For?

A legal matter management system, also known as a legal management system (LMS) or legal practice management system (LPMS), provides core operational functions for law firms in a way that is convenient to use and easy for attorneys to access outside the office. Some of the most important uses of this software include, but are not limited to…

• Intuitive case management that makes it easier to manage deadlines and tasks.
• Time and expense tracking built for the fluid nature of billable hours.
• Simplified client intake and communication strategies that reduce manual tasks and improve client retention.
• Reliable e-signature capabilities that expedite document approval and signing.
• Storage and organization of critical documents, for secure and easy access.
• Payment processing that is both safe and convenient for clients and attorneys.

Law firms work in constant flux with various sensitive documents, private client information, and variable schedules. Attorneys have to be both quick on their feet and conscious of safeguarding their caseloads, while also moving in and out of office for their work. This is why in a law firm, case management software is essential: it’s an aid that provides security, efficiency, and flexibility to legal professionals who need all three to do their jobs effectively.

What Are the Benefits of Legal Software?

Most of the benefits of legal software come back to increased efficiency, security, and convenience — both for law firms and their clients. Some key things to highlight are:

• A smoother, speedier client intake process that eliminates bottlenecks and reduces manual entry.
• Enhanced security for client information and payment handling with advanced encryption.
• Complete control over the legal billing lifecycle, helping you manage payments with ease and reducing the risk of errors or disputes.
• Better client communication — for example, client portals to create more touchpoints.
• Improved deadline management with integrated calendar tools and automated reminders that help your team stay on top of critical dates.
• A single, centralized source of knowledge for a firm’s entire caseload, making it easier to maintain consistency in legal strategies and client communications.

Most legal software will focus on streamlining operations and making the practice of law simpler for attorneys. But notably, only a few software solutions will also provide that same level of simplicity and comfort for the client. If you are researching legal software for use at your firm, be sure the software doesn’t just improve operations but client experience as well. Providing a great client experience is possibly the best marketing tool a firm can use.

How to Evaluate Legal Case Management Systems

Deciding on a legal software firm comes down to a few critical factors: efficiency, budget, security, and client experience. As you do your research, consider these factors accordingly.

Efficiency

As an attorney, being precise with your time is important for you, your client, and your firm. A legal software that’s worth its salt should make it easy for attorneys to be efficient — whether that’s in tracking their time, organizing their caseload, or accessing case information while on the go.

The best way to determine the efficiency of legal software is through a live demonstration or a free trial. Meet with your team beforehand and determine what your most common processes are, and then decide on a list of processes to test during your trial or demo. These might include tracking billable hours, managing client intake, searching through case files, or setting reminders for important deadlines.

Once you have this list, use it as your guide during the demo or trial. For each task, pay close attention to how many steps are involved and how intuitive the process feels. For example, if tracking billable hours is a priority, test whether the software allows you to log time directly from your calendar or task list with minimal clicks. If generating reports is crucial, see how quickly and accurately the software compiles data, and whether it offers customizable options that fit your firm’s needs.

Budget

With software especially, it’s critical to evaluate not just the cost of the software but what you stand to gain from it. In many cases, a lower price is not necessarily the best option budget-wise; this is because software that is cheaper may not improve your operations and may even hinder it. Conversely, a software that is more expensive may provide benefits that save you far much more time, money, and resources than the dollar amount you pay for it. 

When evaluating your software budget, instead of asking, “How much is this going to cost?” ask “What do I stand to gain from this software, and does that match or surpass its price?” If you are using a quality software product, the benefits it provides your practice should well outweigh the price of using it. 

Further, consider the scalability of software as your firm grows or even shrinks in its caseload. Will that software still provide the same level of benefit to you if things change for your firm? With the best options, the answer should still be a definite “yes.”

Security

It doesn’t take a law degree to know security is vital to the practice of law. Whether working with client documents, processing payments, or moving from offices to courtrooms, you have to keep operations as secure and safe as possible — for both you and your clients. 

Start by looking at how each legal software option handles encryption. It’s important that all client data, whether it’s being sent or stored, is protected against unauthorized access. Encryption ensures that even if data is intercepted, it remains unreadable to anyone without the proper clearance.

Access control is another vital feature. Your software should allow you to customize permissions for each member of your team. For instance, a junior associate might only need access to specific case files, while a partner might require broader access. This way, sensitive information stays within the right hands, and your firm maintains the necessary level of confidentiality.

Compliance with legal standards is another factor to weigh. Depending on your practice, you might be required to adhere to regulations like GDPR or HIPAA. Your software should make it easier to meet these requirements, reducing the risk of penalties or complications down the road.

Client Experience

Creating a positive client experience is one of the most important aspects of running a successful law firm. Clients want to feel informed, supported, and confident that their matters are being handled with the utmost care.

When evaluating legal software, consider how it impacts your client interactions. A system that prioritizes client experience will help you maintain strong relationships while managing your caseload efficiently. Below is a checklist of must-haves to ensure the software you choose supports a superior client experience:

• Client Portals: Secure online portals where clients can access their case information, review documents, and communicate directly with their legal team.
• Automated Updates: A system that automatically sends notifications to clients about key developments in their case, reducing the need for manual follow-ups.
• Document Sharing: Easy and secure document sharing options that allow clients to upload and download files without hassle.
• Two-Way Texting: A feature that allows you to send and receive texts with clients directly through the software, facilitating quick and convenient communication.
• Flexible Payment Options: Integrated payment systems that offer clients various ways to settle invoices, such as credit cards, e-checks, or payment plans.

Simply put, a software that excels in these four factors — efficiency, budget, security, and client experience — is one that will truly support a law firm’s success in its practice.

What Is a Legal Matter Management System Example?

The best example of a legal matter management system is PracticePanther: the only all-in-one legal case management software that provides the security, efficiency, and flexibility law firms need to be successful. With features like automated workflows, client intake data syncing, and customizable insights reports for your practice, you’ll be able to not only optimize your firm but make informed decisions that will improve your practice down the road.

Many firms have already seen success with PracticePanther — for example, Slingbaum Law, which is now able to complete cases 25% faster than before. To quote the founding partner Matthew Slingbaum, PracticePanther has “paid for itself a thousand times over already” by providing efficiency, convenience, and organization to the firm.

If you’re ready to experience the same level of success as them and many other firms who use PracticePanther, sign up for a free trial or a free demo. We’re excited to work with you!