Are you juggling with financial stress at your law firm? Cost control is definitely something you should consider, and it is best to start now.

Thomson Reuters’ 2023 State of Corporate Law Department stated that more than a third of in-house legal teams are expected to increase in legal spend the upcoming year, with 85 percent identifying reducing outside counsel costs as a top concern.

Let us define Legal Spend Management, discuss the best software among them, and a guideline to implementing efficient spend management in your firm.

What is Legal Spend Management?

Legal spend management is a collection of strategies, practices, and tools law firms use to help legal departments, agencies, and firms better control, analyze, and manage their expenses.

Law firms have been introducing various types of software into their systems, such as SaaS management software, legal case management software, law firm billing software, etc. Besides the usual software, legal industries have also introduced Legal process outsourcing into their firm’s operations, such as outsourcing legal research.

In this blog, we will discuss Law firm billing and law firm accounts receivable management as they correlate to legal spend management. All three of them involve managing cost and expenses.

The main objectives of introducing spend management software into a law firm’s working system are to maintain transparency, ensure cost control, optimize value, and maintain efficiency.

What is SaaS Management Software?

SaaS stands for “Software as a service.”

SaaS management is a business practice of managing, optimizing, and governing all the SaaS applications within a company’s portfolio.

SaaS is known by different names, such as SaaS spend management, SaaS operations, and software management. No matter what it is called, SaaS is all about managing software applications and their associated costs and risks.

Four Components of Legal Spend Management

Legal e-billing software replaces paper invoices with digital ones. It automates processes like uploading and reviewing invoices and can use AI to check them against spending guidelines.

Law firm management software helps companies manage their outside legal spending. It integrates law firms into company systems, focuses on legal department needs, and considers factors like firm selection, diversity, and pricing options.

Timekeeper rate management software helps legal teams manage and analyze timekeeper rates. It compares rates to industry benchmarks, considering factors like experience, location, and law firm size to optimize legal spending.

Legal spend reporting and analytics software help analyze legal spending. It creates reports and dashboards to help manage legal budgets and make informed decisions.

Features of Legal Spend Management Solution

• Centralized Spend Tracking – keeps all your legal spending in one place. This makes it easy to see where your money goes. Invoices, budgets, and other data are stored securely in the cloud. You can access and analyze this data anytime, anywhere.

AI tools like Ask Brightflag provide quick insights without manual reports. To ensure data is protected and secure, restricted access is granted, and only those who have access can implement change.

• Automated Application of Outside Counsel Guidelines – Automated guidelines ensure legal invoices follow your standard rules. The system flags problems and helps you review them quickly. It also makes it easier for lawyers to review and approve invoices easily.

You can update guidelines as needed. The system helps all those involved in the process understand and follow the rules, making the process smoother.

• Budgeting At Every Level Of Legal Spend – Tracking your legal costs is the base of a business’s financial health. A good tool lets you set and monitor budgets for each case, legal area, and the whole department. This helps you stay on track, find problems early, and create reports for your finance team.

• Legal Spend Reporting – This reporting tool allows you to collect data and visualize it through graphs and tables. A well-designed tool gives you clear reports and graphs to see where your money goes. You can compare costs, find trends, and get advice from experts. This allows you to make better decisions.

A Quick Guide to Implementing Legal Spend Management Effectively!

• Set Objectives and Benchmarks

Clearly defined goals are the start of implementing any successful legal spend management strategy. Keep in mind that having measurable goals is vital. The objectives should also be flexible enough to adapt to changes in the legal landscape.

Know what you want to achieve and work with everyone involved to reach those goals. Be ready to change your plans as needed.

• Collaborate with Legal Service Providers

Work together with lawyers! Talk to them often and clearly explain your expectations. This will create a mutual understanding and ensure transparency. Constant communication ensures that everyone is on the same page regarding acceptable and non-acceptable charges.

They should also give you feedback, as it provides valuable insights. Feedback gives a firm the opportunity to fix problems quickly, which helps everyone work better together.

• Review and Adjust Regularly

Tracking your progress after implementation is important to understanding how the new tool is affecting your law firm’s productivity.

You need to ensure that your goals are being met and what and how you can improve if any required. Be flexible, change your plans as needed. Use the best tools for the job. Everyone should always look for ways to bribing improvement.

Pros of Implementing Spend Management Software

Legal Spend Management offers several advantages for law firms, enabling them to streamline processes, improve efficiency, and base all decisions on the collected data.

Cost Reduction and Enhance Efficiency

• Automated invoicing streamlines invoice handling, reduces the possibility of errors and accelerates payment cycles.
• Automated tasks save time, freeing up legal professionals to focus on core competencies.
• Identify opportunities to negotiate better rates, optimize resource allocation, and eliminate unnecessary spending. For example, one of the benefits of outsourcing legal services is saving cost as you only pay for the service you require.
• With automated processes, invoice processing and payment are completed swiftly, improving cash flow management.

Improve Visibility and Control

• Data Centralization: All legal matter information, invoices, budgets, and accruals are collected and placed in one unified platform, making access more convenient and easy to find.
• Real-time Insights: The tool provides live, updated information on legal spending, enabling proactive management.
• Risk Mitigation: The spending software can proactively identify potential cost overruns and compliance issues that could result in financial overspending or legal breaches.

Enhanced Decision Making

• Data-Driven Insights: This tool allows the visualization of data reports and analysis through graphs and tables. This aids the overall firm in making strategic decisions.

• Performance Benchmarking: Every corporation in the business world has data on its legal spending every year. With these tools, one can compare their legal spending against industry standards and previous data.

• Matter Optimization: Such software enables firms to save costs by identifying high-value matters and areas of unnecessary costs.

Vendor Management: The tool that studies the overall firm performance and identifies possible strategies for optimization.

Improved Legal Department Performance

• Transparency is vital to enhance legal spending visibility for legal and finance teams.
• Teamwork is essential in legal departments. This software helps facilitate better communication and collaboration with law firms.
• Enhanced Compliance: The software can proactively identify potential issues that could lead to financial overspending or legal breaches.
• Strategic Planning: Planning and budgeting are mandatory at the start of any legal firm project. This tool will allow firms to do just that, but more efficiently.

Risks and Considerations when Implementing Legal Spend Management System

• Data Privacy and Security Risks

In the legal industry, data transactions always raise a concern with security and privacy. Software developers are aware of this concern so respecting these concerns they have designed legal spend management solutions with in-built security measure such as restrictive access to legal data.

• Compatibility and Integration Challenges

When a new system is introduced into a legal industry, there is always the question that what if the new software does not compliment the already existing system. This can require technical expertise and can be a complex process.

• Training and Adoption

In a large law firm, training a huge team of legal experts can be time-consuming and costly as not all team members will be able to comprehend the software as well as another. Also, employees who are used to the current system won’t warmly welcome a new software compared to a new hire who has yet to adjust to the company’s ways.

• Vendor Support and Customer Service

One thing that comes to mind when introducing a new software to a law firm is the quality of the support system the vendor is willing to provide and the response time. Will there be hidden costs and how much can we customize to satisfy our needs.

10 Best Legal Spend Management Software of 2025

1. Rippling

Overview

Rippling is an all-in-one platform that simplifies HR, IT, and finance tasks. It combines essential tools for managing employees, payroll, benefits, and technology into a single, easy-to-use system.

Features: HR, payroll, benefits, and insurance alongside spend management, aiming for a unified platform for people and finance

Target Market: Small to Medium-sized businesses

Rating – 4.9

Pricing – Starting at $8 per month per user

2. Ramp

Overview

Ramp helps businesses save money, improve financial visibility, and streamline accounting processes.

Features: Focuses on spend visibility and fraud prevention

Target Market: High-growth startups and scale-ups

Rating – 4.9

Pricing – Starting at $0 per user/month

3. ExpensePoint

Overview

ExpensePoint is a cloud-based software designed to simplify and automate expense reporting and management processes for businesses. It helps companies control costs, improve efficiency, and enhance compliance.

Features: AI-powered expense reporting, automation, and integration with accounting software

Target Market: Small to medium-sized firms

Rating – 4.9

Pricing – Starting at $8.50 per user monthly

4. Stampli

Overview

Stampli is a software designed to automate and manage accounts payable (AP) processes. It centralizes invoice management, communication, and workflows, offering increased visibility and control.

Features: AI-driven invoice automation, supplier collaboration, and early payment discounts

Target Market: Mid-market and enterprise organizations

Rating – 4.8

Pricing – Available on Request

5. Rindegastos

Overview

Rindegastos is a cloud-based expense management platform designed to streamline the process of tracking, managing, and reimbursing employee expenses. It offers a mobile app and web-based interface for easy use.

Features: Primarily focused on the Spanish market, offering localized features and compliance

Target Market: Spanish Businesses

Rating – 4.9

Pricing – Starting at USD 2 per user/ monthly. Free Trial Available.

6. Coast

Overview

Coast is a versatile software designed to enhance operational efficiency. It aims to improve productivity, reduce costs, and enhance overall operational performance.

Features: Emphasizes expense management and corporate card controls with a focus on simplicity

Target Market: Small to medium-sized businesses

Rating – 5.0

Pricing – Starting at $4 per active card, per month. Various plans are available. Visit website for more information.

7. Pleo

Overview

Pleo is spent management software designed to streamline business expenses. It offers a combination of corporate cards, expense management, and invoice management tools.

Features: Corporate cards with spending limits and controls aimed at providing financial freedom for employees.

Target Market: Small to medium-sized businesses

Rating – 4.8

Pricing – Starting at 0 to 89 GBP per month

8. Budgetly

Overview

Budgetly is a software that offers a combination of prepaid corporate cards, budgeting tools, and expense tracking features. It is known to help you with managing your finances effectively.

Features: Budgeting and forecasting tools integrated with expense management, suitable for businesses with complex budgeting needs.

Target Market: Small to medium-sized businesses

Rating – 4.9

Pricing – Starting $89 per month, billed annually

9. Wallester

Overview

Wallester it is a spend management tool that offers a comprehensive solution for businesses to manage their expenses, control spending, and enhance their financial operations.

Features: Virtual card platform with emphasis on control and security.

Target Market: Businesses seeking advanced card management

Rating – 4.9

Pricing – Starting at 0 euro/ month to 999 euro/ month. For a set of personalized solutions for large-scale business, contact Wallester.

10. Precoro

Overview

Precoro is a user-friendly online tool that helps businesses manage their spending. It simplifies tasks like requesting purchases, approving orders, and paying bills, all in one place.

Features: Procurement and spend management platform, offering sourcing, contract management, and supplier collaboration

Target Management: Mid-market and enterprise organizations

Rating – 4.8

Pricing – Free Trial Available. Starting at $249/month, billed annually.

Will These Software Enable Legal Firms to Reduce Legal Spend?

With legal spend management solutions, the legal department will be able to create detailed visualized reports that provide an overview of the organization’s legal spending, budget, and allocation of legal work.

In addition, a detailed overview of the firm will provide transparency into how both your in-house team and your outside law firms are performing. This will allow firms to calculate the value they provide to the organization.

Will Data Collected By The Software Be of Any Help?

The data managed from the spend management tool will give the following:

• Measure performance, review spending, and budget: This allows the leadership team to know every single detail of every single angle of their firm’s legal department. This includes budget, spending, and allocation of legal work so they can make precise, data-driven, strategic decisions.

• Benchmark data and mitigate risk: This feature enables firms to compare their organization against the highest-performing legal departments worldwide with over $150 billion in legal spending.

This helps a firm be aware of its position in the world, and when both features are combined, they enable the firm to take strategic steps to improve its overall value.

Parting Thoughts

Tracking and controlling a firm’s spending is crucial to a law firm’s financial health. Setting a budget requires visualization of spending reports and analysis.

With Legal Spend Management software, law firms are guaranteed to thrive. The software not only helps with budgeting but also with tracking costs, benchmarking data, and automating specific processes to ensure law firm billing follows the standard rules.

At the end of the day, spend management software will enable law firms to gain valuable insights into their spending patterns, thus helping make data-driven decisions to control or reduce spend.

Besides that, Legal process outsourcing has been a trending in the legal industry since 2012 and has been growing since as the benefits of outsourcing legal services outweighs its potential challenges.

For More Info on Legal Process Outsourcing

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