Introduction

The Uniform Task-Based Management System (UTBMS) is a framework that allows law firms to categorize and keep track of tasks, activities, and expenditures that can be easily identified through a system of codes. It provides both law firms and clients greater transparency, maintains mutual understanding, and identifies the most costly tasks and activities that attorneys engage in. While the UTBMS has been widely used within the industry, there are many challenges that lawyers can face, ranging from human error to client-specific variations and preferences. In this post, we will explain some of the best practices to help your firm use these codes efficiently and mitigate the common challenges that arise when using the system.

Best Practices When Using UTBMS Codes

Choose the Right UTBMS Codes for Your Firm

UTBMS codes are organized into distinct sets tailored to various legal services such as litigation, bankruptcy, project administration, and more. This structure allows firms to focus on the code sets that are more relevant to their practice areas, making the billing process more efficient and meaningful.

Each code set breaks down the legal process into categories and specific phases, enabling detailed tracking of activities at every stage. The letter at the beginning of each code denotes the code set (e.g., “L” for Litigation), while the numbers that follow usually represent particular phases or tasks (e.g., L210-L260 covers tasks within the “Pre-Trial Pleadings and Motions” phase). UTBMS codes are intentionally granular, capturing not only tasks and activities but also related expenses, which helps firms analyze case costs by phase, identify trends, and benchmark performance across similar matters. This standardized approach promotes transparency and allows for more accurate reporting, both internally and externally, while supporting consistent billing practices throughout the industry.

Always Supplement Codes with Narratives

It is always best to supplement codes with clear and standardized narratives to provide context for the codes beyond the task, activity, or expense. Narratives also help provide explanations to clients and other people who read the invoice while also providing more clarity, as it is much easier to interpret a short sentence than a list of codes. This is especially important for certain codes, such as activity code A111, which represents miscellaneous work that was done that may not be known to everyone.

While it is important to use narratives to describe codes, it is vital for the narrative to be as specific as possible to avoid any confusion. One approach some attorneys use is the verb-object-purpose format for formatting narrative entries. For example, "Researched case law on breach of contract (A102)" immediately tells the client about what was done and removes the vagueness associated with the activity code A102. Regardless of which format your firm uses, double-check narratives with codes and ensure that they are matched accordingly and that the code is the most appropriate for the task, activity, or expense. Ensure that narratives are not just repeats of the code’s description but instead provide any necessary context for the reader.

Review Current Coding System

Occasionally, there could be some revisions to industry standards for UTBMS codes. The LEDES Oversight Committee (LOC) is responsible for revising and expanding the use of codes to match the evolving and rapidly changing legal world. As an example, in 2013, the LOC introduced numerous revised expense codes and set the new codes to start with "X" instead of the original "E" prefix to help distinguish them from older expense codes. Updates to UTBMS codes are designed to provide greater granularity, enabling firms to capture more detailed information about their work and gain clearer insights into specific activities and costs. Many firms and clients may have a preference as to which codes to use, so it is important to pay close attention to any new additions and use codes accordingly.

Additionally, the preset codes established by the LOC may not cover all the work your firm performs. Firms can consider adopting custom codes tailored to their business or practice, provided these are acceptable to their clients. Custom codes are useful in more niche and differentiated law practices that continue to evolve over time. While there is a risk of confusion and inconsistencies, it could provide greater value in giving more applicable time entries, precise definitions, and more transparency.

Leverage UTBMS Software

Many legal practice management software have UTBMS code tracking built within them, making it easier for legal professionals to assign the correct codes. Some more advanced systems can remember commonly used code entries, and others may even use AI to auto-classify entries and even flag missing codes, reducing the risks of mistakes, and saving time and effort. In addition, these tools often offer powerful analytics to help firms evaluate expenses, identify spending patterns, and improve overall practice management.

Billables AI is a timekeeping tool that allows lawyers to spend less time billing and other tedious tasks involved in timekeeping. With many built-in features and customizations, the platform allows users to assign codes to specific tasks, activities, and expenses digitally, acting as an all-in-one platform for billing. Billables AI integrates with many common workplace software such as Gmail, Outlook, Microsoft Office, Zoom, and more to allow for effortless time tracking and code-assigning capabilities. Billables AI also integrates with other legal practice management software such as Clio and MyCase, allowing users to make use of coded entries and features used within these platforms. Billables AI leverages AI-driven suggestions that become smarter as users approve or adjust entries, making code assignments even more intuitive over time. With the ability to import codes or input your own, Billables AI gives more flexibility and convenience to many law firms.

Interested in streamlining your billing and improving your practice management? Sign up at the bottom of this page to request a demo or learn more about what Billables AI can do for your firm.

Ensure Consistent Use Across the Firm

UTBMS codes deliver their full value only when they are applied consistently and standardized across the entire firm. For example, if an attorney classifies a task as A103 (Draft/Revise) but another attorney who performs the exact same task labels it as A104 (Review/Analyze), it can cause confusion and undermine the integrity of the firm's reporting and billing.

To avoid this, firms should prepare and train all personnel responsible for reading and reporting UTBMS codes to ensure consistency throughout the firm. Information regarding the firm's specific guidelines when classifying tasks and manuals that can be referred to when ambiguity exists can help provide shared understanding and decrease the need for interpretation. Firms should also consider regular internal audits of codes to correct misclassified codes and reinforce best practices to billing staff.

Maximize the Value of UTBMS Codes

By thoughtfully implementing these best practices, law firms can fully realize the benefits of UTBMS codes, achieving greater transparency, improving communication with clients, and strengthening internal processes. Staying proactive about updates, using the right tools, and committing to consistency ensures that billing remains both efficient and accurate, even as legal services continue to evolve. Ultimately, a well-managed UTBMS system empowers firms to make better business decisions, foster trust with clients, and maintain a competitive edge in today’s dynamic legal landscape.