Some solos, particularly tech-savvy ones, say no, but I’m not so sure. I think those who believe practice management software is a waste of money miss some of the most important reasons for using these programs in your practice.

Some objectors opine that most lawyers purchase practice management software for document management, but that a special program for document management isn’t necessary. These lawyers extol the virtues of storing documents through the use of your regular computer operating system, which is the default method for most solos and small law firms (and even some mid-sized firms). These systems use folders for each client and subfolders for individual document types, along with a naming system for those folders.

While this system sounds logical and can work for a while, as a practical matter, it has a number of pitfalls which I have, unfortunately, witnessed first-hand both in the law firms I worked in as an associate and as a partner, but also in the law firms I work with as a consultant.

First, creating a file folder for each client makes sense, it doesn't help if you have a number of different matters for the same client. Some would argue that this is easily solved by naming the folders with the full name of the engagement, but this can also get confusing, and as your client base and the number of engagements with your office grows, you'll find that duplicates and other complications often arise. What happens if you have a practice in which you have a large number of cases with a particular client (for example, if you do insurance coverage work or all of the litigation for a particular company)? Long folder names can get cumbersome quickly. And once there is more than one person creating files, the naming system can fall by the wayside, making searching for documents and information a chore.

These same systems also use subfolders within each client's file for managing documents, with folder names such as "pleadings, discovery, client communication, correspondence, documents and trial." But these categories are open for broad interpretation. Does a letter to a client go in correspondence or client communication? If you're in New York, does the bill of particulars get filed under pleadings or discovery? Does a witness statement get filed in documents or trial? If it is exchanged by another party during discovery, does it get filed under discovery? If a piece of correspondence addresses discovery issues, is it filed under correspondence or discovery? While some of these issues can be resolved by creating rules within your office for electronic filing of documents, even those rules can get out of hand, and no set of rules will be able to account for every single document created or received in your practice. Practice management software eliminates many of these headaches because the documents can be categorized as above (and multiple categories can be assigned to a single document), but search and retrieval of documents is much easier.

I am often baffled by lawyers who insist on saving documents and naming them using the date. Your operating system allows you to sort documents by date regardless of how they are named, so naming them using the date is not only redundant, but is another area open for error because many will forget to use the necessary zeros, causing documents to be out of order anyway. And all of those numbers before the name of the document makes scanning through a document list for a particular document type or name difficult. If you’re scanning documents received from opposing counsel, your client, etc. the date of the document in your operating system won’t be the same as the date the document is created, but is the date the document was created important? There may be occasions what that is the case, but it will most likely be the exception, rather than the rule. Often, the more important date (at least in terms of searching for the document) will be the date that the document was received by your office. Of course, if there is some special reason why the date of the document itself is important, that date can be included in the document name.

Filing documents by file type also isn't necessarily productive or helpful - should it matter whether a document is a pdf or a word file in most instances? When you are searching for a particular document, is its format most important? Consider naming documents using criteria that you would use most often to search for them, or names that give you some idea of the substance of the document itself, to make the document easier to identify during your search.

If you file documents in client subfolders, it is also not necessary to include the name of the client in the file name - the document is already stored in that client's folder. The longer the file name, the more confusing it is and the less likely it is that you'll be able to see the entire name on your screen in some formats. Easy and simple but descriptive should be the order of the day. Name documents in a way that allows you to tell at a glance what the document contains so that you don’t have to open multiple documents to find what you are looking for. While it is true that each operating system has its own search function, many of these search functions are not as robust as those that are made a part of practice management software packages.

Another plus of practice management software is its ability to link clients with matters and documents with clients or matters. You can easily see what work has been done for a particular client across multiple files, and any document created on a particular file is also linked to that client and contact - along with to-dos or tasks for that client and upcoming dates or calendar entries. This is a big advantage when communicating with clients, because you have all of the information at your fingertips, without having to search several different applications (Word processing, email, calendar, etc.) and individual client matters for information - you can get it all through the client interface.

Practice management software also is a huge time saver when a client's information changes. Instead of having to go into each file separately to note an address change, a contact name change, telephone number change, etc., the change can be made once in the client's information screen and it will automatically be applied to each of that client's matters. Over and over I have seen law firms struggle with address, telephone number or contact person name changes where files and information are stored in individual file folders because lawyers and staff either are not informed of the change or they forget to make the change in each individual file.

Conflicts are another area of concern that can be addressed with practice management software. While it may be easy to determine whether you've ever represented a particular party before, it may not be as easy to determine whether you represented another party (such as a codefendant) with adverse interests without a robust database of information. Many lawyers have gotten into a case only to realize some time later that a conflict or potential conflict existed. You could develop your own conflict checking system, but is it worth the time and effort to do so when you can use one already created with lawyers in mind? If a grievance arises or your malpractice insurer inquires about what you’re using to do conflicts checks, are you comfortable saying that you rely on memory or a local search on your system?

Practice management programs integrated with time and billing programs can help you not only create and assemble documents using information stored in the system (rather than constantly re-typing the same information over and over), but can help you track and bill your time for those activities as they're being performed (if you must bill hourly).

Some lawyers who are particularly tech-savvy can develop a series of systems using other applications that can work effectively for a solo practice. But once that solo practice expands – even just with the addition of a part time paralegal or secretary - many of those systems will flounder or fail as a result of an inability to share information or adequately train another person on how those systems work. In addition, although using several different applications, programs or systems can be effective, it is less likely that information will be able to be shared across those programs or linked to one another effectively, creating the necessity to enter the same information in several different programs.

At a recent meeting of solo lawyers, one attorney remarked to me, “I would tell anyone who is starting their own practice to invest in practice management software from the very beginning. It’s the easiest and best way to stay organized. They may not think they need it right away, but it’s an investment worth making, and it’s much easier to have it ready from the start and enter each client as they come, rather than having to convert later when you’ve got a lot of clients and other work to focus on.”

In addition to traditional practice management software packages that are installed directly on your computer or server, some companies, such as Rocket Matter and Clio, are now providing practice management software as a service online, making them popular options for solos and small firms who don’t have their own IT departments.

Purchasing (and being trained on how to use) practice management software is an investment in your practice. The up-front costs involved should be easily outweighed by the gains in productivity, time and organization, especially if you're not a true solo and you need to share information with staff and other attorneys, or if you anticipate that you may need to do so in the future.