Trial Magazine

Stay in front, or fall behind. Those are the two choices a small law firm faces when it comes to adopting law firm technology. But where does one begin? With all the considerations—vendors, tech solutions, and costs—how does a small firm lawyer make the best decisions when investing in technology?

Law firms throughout the country are increasingly investing in office technology: In a recent International Legal Technology Association (ILTA) and Inside Legal survey, 53 percent of respondents said their technology budgets increased in 2016—that’s a 12 percent growth rate compared to 2015.¹ And 39 percent of those firms that increased their tech budgets in 2016 were small law firms (1–49 attorneys).² But a recent ABA survey shows that sole practitioners and small firms are still less likely to budget for technology than large firms.³

Too often, small firms overlook the importance of incorporating technology expenses into a budget. When used purposefully, however, technology increases a law firm’s productivity and success. So how do you create a budget that works for your firm?

You can only create an appropriate budget by understanding your current expenses. For guidance, look back at the past five years to identify areas that may increase in cost and areas in which you can save money. When constructing a technology budget for future years, I recommend adding roughly 5 percent to each subsequent year to adjust for unanticipated expenditures.

However, many law firms experience vast fluctuations in their year-to-year income. Plaintiff firms often work on cases for years before going to trial, and there are no guaranteed results. Because of this unpredictability, there are no hard guidelines for what percentage of your firm’s income to spend on technology. As a starting point, I suggest purchasing what you feel will have the most impact on your practice, which may be as simple as upgrading your computer or implementing low-cost staff training for your current software. As your productivity increases, decide what areas deserve increased expenditure.

Of note: In the ITLA survey, respondents’ top five purchases in 2016 were desktop ­hardware, laptops and ­notebooks, network upgrades, printers and multifunctional devices, and ­antivirus software.⁴ Whatever you choose, tech budget expenditures can be broken down into four basic categories: hardware, ­software, training, and services.

Hardware

Let’s start off with the most divisive topic of them all: Mac or Windows? After years of competition and price wars, the real winner is fortunately the consumer, who has a great selection of affordable computers to choose from.

Years ago, after experiencing one too many PC glitches before a jury, I made the decision to go all in and adopt a ­Mac-only environment in both the courtroom and my office. I now use a combination of iMacs, MacBook Pros, iPads, Apple TV, and even an Apple Watch. The connectivity between devices is an essential part of my productivity inside and outside the office. Macs are integrated with other Apple products as well as their apps, such as Keynote—a powerful and intuitive presentation application we use at trial. I have a copy of Windows 10 ($100), which—along with the free Mac Boot Camp service—allows us to run Windows on our Mac computers if the rare need arises.

Whichever computer platform you choose, remember to “future proof” your workstation and spend extra money upfront to maximize the RAM, processor, and storage. Although I replace our Macs every four to five years, these incremental upgrades stretch the life of the computer for years. Our powerful iMacs from 2009, for example, work flawlessly. I always recommend purchasing AppleCare for $169 from the Apple store, which will add three years of repair coverage and 24/7 telephone technical support.

I also recommend setting aside roughly $400 each year per computer in anticipation of the next computer purchase or, if your budget allows, scheduling it as a special purchase every five years. Another option is to purchase refurbished products from the Apple store—this is a much less expensive approach, but it carries more risk.

iPads. The iPad Pro ($649) is essential to my practice. With an enormous ecosystem of creative apps, the iPad allows me to read and annotate deposition transcripts (TranscriptPad); present exhibits at trial or a hearing (TrialPad); analyze lengthy medical charts (iAnnotate­ or Liquid Paper); access my complete case files anywhere that has internet (Dropbox or Box); and perform immediate, on-the-fly research. The screen can be displayed in any courtroom­ through traditional plug-and-play technology, as well as wirelessly through Apple TV.

Data management. I use a mixture of on-site servers and off-site backup. On-site servers are advantageous because they offer users instant access to all files in the office, and they also sync with Dropbox for remote access and backup.

In my office, I installed a Western Digital 4-terabyte eFile server system, available for $1,200 on Amazon. I personally prefer a physical server to Dropbox—it’s faster, more stable, and on site, which means all files are local and can be fixed in the event of a technical issue. All servers can also assign each user a unique login, which generates accountability among office users.

Printers and scanners. You can either lease or purchase a combined printer/copier/scanner for the office. I lease a Canon machine for approximately $700 per month—the lease allows us to more accurately budget expenses for each month, and a single machine of this quality can easily serve 20 lawyers.

If you purchase a machine, there’s a higher initial cost accompanied by low monthly maintenance fees, although investing in a good printer can minimize those recurring costs. Some offices choose to purchase through a vendor, such as Canon or Sharp, whose monthly services charge will include ink and maintenance. These recurring monthly payments will also make it easier to calculate a budget.

I also equip every employee with a Fujitsu ScanSnap ($430), which is capable of handling large scanning jobs and is easy to operate. Each employee can scan documents to the central server, which helps keep the main server up to date with the latest documents. This is particularly important because I keep my office as paperless as possible by adopting a disciplined system of scanning each incoming document and filing it on the server. Not only is a scanned document easier to search for and access, but going paperless frees up ­valuable office space and reduces expenses for paper, storage, document destruction, and printing fees.

Software

The following software is particularly useful for my firm’s operations:

Adobe Acrobat Pro. Adobe Acrobat Pro ($449) allows the user to edit, Bates stamp, and search pdfs with ease.

Dropbox. Dropbox ($20 per user/month) allows remote access to files and lets you share folders with other attorneys and clients. It can be synced to the internal server system, allowing for ­well-organized offsite access and productivity.

LogMeIn. LogMeIn ($600/year for up to five computers) is an innovative app that allows remote, secure access to your office computer, eliminating the need to buy double the software licenses if you have a second workstation or are traveling for work.

Microsoft Office Suite. Microsoft Office Suite ($100/year) contains five licenses for the office and includes Word, Excel, PowerPoint, and Outlook, among others.

MyCase. MyCase ($39 per user/month) is case management software that includes an interactive calendar where staff can sync appointments and mark deadlines, deposition dates, trial dates, and much more. It also tracks time and expenses, stores client contact information, and assigns tasks to staff.

QuickBooks. QuickBooks ($35/month) is a necessity for office administration—it manages income, billing, and expenses.

FactBox. ($45/month) is an online alternative to the PC-only CaseMap software and allows the user to create detailed, to-the-second case time lines.

Training

Purchasing legal technology is only one side of the coin. You must invest the time and resources to train your employees to use the technology effectively. Simple tasks—such as periodic computer ­shutdowns and immediately installing recommended updates—will maximize your computers’ lifespan, extend the life of the entire workstation, and save money in the future.

You should think of your employees’ ­workstations as their computers, monitors, and peripheral devices. If an employee has a question or needs help, set aside a few hours to walk them through the basic functions. I do not outsource this task to IT professionals—I find that most employees understand these responsibilities and perform them independently.

Services

LogMeIn. In addition to providing secure remote access to your workstation­, LogMeIn also allows IT to service your workstation remotely, accelerating response time and minimizing costs. Since I don’t have in-house IT, off-site IT can use the app’s remote access to fix any issues. It also allows me to share certain hardware throughout the office, such as printers, Wi-Fi routers, ­telephone networks, and conference room equipment.

IT. Develop a relationship with a reliable IT professional who is not only knowledgeable but also responsive. I budget approximately $400 per month for IT costs. Don’t forget that you can also use the free support number included with computer hardware or software.

Phone and internet services. I use Comcast for our phone and internet service—having one provider for both helps us negotiate a lower cost. I pay $500 per month, which includes 25 phone lines plus high-speed internet. The cost can be apportioned among the lawyers in the office.

A small business owner’s cash flow should be tightly managed, and your office cannot experience any ­downtime—so a well-organized tech budget is crucial.

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Lloyd N. Bell is the founder of Bell Law Firm in Atlanta. He can be reached at bell@belllawfirm.com. The views expressed in this article are the author’s and do not constitute an endorsement of any product or service by Trial or AAJ.

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Notes

1. Int’l Legal Tech. Ass’n, 2016 ILTA/InsideLegal Technology Purchasing Survey at 1, www.insidelegal.typepad.com/files/2016_ILTA_InsideLegal_Technology_Purchasing_Survey.pdf.
2. Id. at 1, 5.
3. See Dave Bilinsky & Laura Calloway, ABA TechReport 2016, www.americanbar.org/publications/techreport/2016/planning_budgeting.html.  
4. 2016 ILTA Survey, at 1, 5.