Document Management for Law Firms - What to Look For

More than any other profession, legal work begets paperwork: agreements must be written and affirmed, recommendations must be recorded, and the working for every decision noted down in a way that supports it. On top of that is the regular need to meticulously track internal timekeeping: while charging clients for billable hours in six-minute increments isn’t as ubiquitous as it used to be, particularly at smaller operations, many firms still track them regardless as a performance metric.

Much of this is driven by legal requirements: law firms are subject to specific legislation which mandates long-term storage of documents (with varying lifespans from three years to indefinitely, as required by the Limitation Act) and scrupulous behaviour as detailed by the Solicitors Regulation Authority. 

The US has separate legislation, with additional requirements varying by state, but the headline requirements are broadly the same: ethical behaviour, acting in the best interests of clients, and protecting client information. Firms have to maintain robust records to demonstrate all of the above, and lawyers are personally accountable for compliance and must be prepared to justify their decisions and actions. 

• Lawyers must protect all client information, with strict access controls for sensitive information
• Firms must keep and maintain records to demonstrate compliance with SRA regulatory arrangements
• Firms are accountable for compliance, even when work is carried out through others.

This means that law firms can see huge benefits from using a document management system. A good DMS will not only tame the endless flow of (digital) paperwork through the firm, but it will also provide robust tracking and monitoring that can be used to demonstrate compliance - which is essential when confirming to the SRA Principles. That’s particularly important when it comes to sharing documents with clients or other firms, when relying on email creates regulatory risk.

The SRA's focus on accountability means that if a breach or non-compliance occurs, the firm must be able to show that it had "effective safeguards" in place. A full-fat DMS with suitable user access controls is an excellent foundation for that, and of course it includes the efficiency benefits that come as standard. This guide lists the main features to consider when looking for a document management solution for law firms.

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1. Compliant with Legislation and Best Practice

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The table stakes is compliance with GDPR, which applies to all businesses. Any document management service used by a law firm would also be considered an Important Business Service (IBS) under FCA guidelines, so the law firm will be held responsible for ensuring its resilience. Accordingly, the provider needs to offer robust contractual safeguards and support ongoing monitoring and audit processes, and provide transparent proof of appropriate certifications and regulatory compliance. 

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2. Project and Client-based Filing Systems

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Being able to easily group documents by client or project, rather than by manual filing, is a major efficiency boost that gives both legal professionals and admin staff more time to handle more important work. A DMS that supports smart document management and brings all client files together in a single hub can be transformational.

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3. Secure File Sharing with Strict Access Controls and Version Tracking

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Contracts and agreements undergo multiple rounds of review and revision, both inside the firm and in the offices of clients. At other times, firms will need to share documents and information externally while still maintaining strict access controls. A good DMS will enable easy remote sharing of files, backed with excellent version tracking that can monitor who’s changed it and when.  

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4. Remote Contract Signing and Filing

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Being able to send contracts for secure digital signature is a huge efficiency boost, removing the need for hard copies for some documents (although some, like wills, will still require it). The best DMS will enable this to be done securely within the platform, so you can track and file contracts as they’re signed. 

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5. Low-cost or Free Storage Capacity

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The number of documents will only increase, so don’t choose a platform that will sting you for extra storage as the files accumulate. Unlimited document storage means you’ll be set for the future with no interruptions as the archive grows.

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6. Supports Document Retention Policies and Cost-effective Long-Term Storage

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As previously mentioned, most legal documents need to be stored for at least six years as required by the Limitations Act, rising to fifteen years and beyond for some categories of case. In some cases, like wills, trust declarations and power of attorney files, documents will need to be held indefinitely, and many files will need to be retained even if the practice closes. The right document management system for law firms will include the ability to set retention limits on files, and include a cost-effective archiving solution for legacy docs that are no longer in regular use.

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7. Alignment or Integration with Other Practice Tools

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Switching to a DMS can deliver huge efficiency savings for law firms, reducing the time spent finding documents and generally working out project status without having to dredge through the notes. The impact is greatly increased by direct integration with other tools. Plugging into Office365 enables automatic tagging and filing of relevant case files, and practices that are already using ERP systems built on Oracle should look for document management systems with NetSuite integration, which can offer further time-saving. You can view the full list of tools Workiro integrates here.

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8. Smart Filing Tools That Can Automate Workflows

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Related to the above: a DMS that can automate routine workflows, like contract filing or approvals, can be invaluable. This can be within the platform, or via integration with other ERPs and tools. 

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9. Secure Remote/mobile Access

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This is particularly important for firms working across multiple timezones, but any legal firm may be called upon outside of conventional working hours. A DMS with a strong set of remote-access features, or a dedicated app, will enable effective problem-solving in that situation, although it will need to be backed by excellent security. Two-factor authentication for logins is a must.

For more insights into DMS selection, check out our guide on how to pick document management systems for different businesses. You can get some real-world insights from our current customers. If you’d like to chat to an expert, book a call with one of our specialists who can give you details tailored to your business.