How long does it take a paralegal to....

"How long does it take a paralegal to analyze financial statements?"

Answering this question without reviewing the attorney's files is difficult. Assessing this common paralegal task is difficult without knowing the document's length, readability, and other factors.

Determining a precise timeframe for a paralegal to analyze bank and credit card statements is not a matter of a simple calculation. There is no industry-wide standard or universally accepted benchmark for this crucial task. The time required is highly variable and hinges on a multitude of factors, ranging from the sheer volume of the documents to the complexity of the legal matter and the technological tools at the paralegal's disposal.

The core of the task requires a meticulous review to ensure every responsive document has been produced and to identify key information relevant to the case. This can range from a few hours for a straightforward matter with limited records to several days or even weeks for complex litigation involving years of financial history.

Note that some courts set hourly guidelines for simple document review. For example, according to the Northern District of Oklahoma's CJA Billing and Payment Instructions Manual, counsel, experts, and service providers are expected to review discovery and/or documents at a rate of at least 60 pages/hour..... (p. 2).



Another caveat to this manual also states that complex revenue cases can take longer and photos and illustrations can take less time, while they also knowledge that each case is unique and therefore this rate is not to be construed as a strict rule. It is also noteworthy to clarify that the reviews describing the manual are "quick reviews without taking notes,"(p. 2).

Chart: Estimated Actual Time for Review

This chart shows the actual time you would likely spend on the task, depending on your goal.



The foregoing chart does not consider the completeness or neatness of the source documents. Nor does it fully consider the key factors influencing the timetable.

Key Factors Influencing the Timeline



Four key variables directly impact the duration of the analysis

Volume and Organization of Documents: A single year of monthly bank and credit card statements can easily equate to hundreds, if not thousands, of pages of data. The more statements and the more transactions per statement, the longer the review will take. Disorganized or incomplete records will also add a significant amount of time for organization and follow-up.

Client document organization varies widely. Some clients are very organized. Other clients produce many flawed documents. This table is suitable for basic paternity cases involving mandatory disclosures. The table above also does not consider the time it takes to the time it takes draft the pleading of compliance. Drafting time for compliance pleadings is billed separately.

Complexity of the Case and Scope of Discovery: A divorce case requiring the tracing of marital assets will necessitate a more in-depth analysis than a simple contract dispute where the financial review is more limited. The specific questions the analysis seeks to answer will dictate the level of scrutiny required. For instance, identifying undisclosed income or dissipated assets is a far more time-consuming process than simply verifying a series of known payments.

Experience Level of the Paralegal: An experienced paralegal with a strong understanding of financial documents and the nuances of the legal matter will generally be more efficient than a junior paralegal. Their ability to quickly identify red flags and relevant information comes with practice.

Use of Technology: The advent of e-discovery and AI-powered document review platforms has revolutionized this process. Software can rapidly scan, digitize, and even categorize transactions, significantly reducing the manual review time for a paralegal. Optical Character Recognition (OCR) can make documents text-searchable, allowing for quick identification of keywords, payees, or specific transaction types. However, the initial setup and quality control of these technological tools also requires time.

Methodologies for Review and Billing

Paralegals employ various methods to analyze financial statements, each impacting the time involved:

Manual Review: This traditional method involves a page-by-page examination of each statement. While thorough, this approach is the most time-consuming, especially with a high volume of documents. The time logged for this method depends on the purpose of the page-by-page examinations. This article assumes manual review means no OCR or searchable tags were used.

Aided Review: The most common method used by the Best Virtual Paralegal Team involves a page-by-page examination of each statement combined with using OCR software, searchable tags, and other technologies to complete a standard page by page review of the documents. A caveat here would be that AI technology is still in its infancy and especially when using it in client data. The integration of AI within legal technology is now pervasive, making avoidance challenging as most practice management tools incorporate AI functionalities.

Spreadsheet Analysis: A common and effective method involves manually entering or exporting transaction data into a spreadsheet. This allows for sorting, filtering, and performing calculations to identify patterns, irregularities, and key financial data points. The time commitment for data entry can be substantial.

Utilizing E-Discovery Software: As mentioned, specialized software can automate much of the initial data extraction and organization. The paralegal's role then shifts to a more analytical one, focusing on the interpretation of the flagged information and a deeper dive into specific areas of concern.

When it comes to billing for this time, transparency and detailed descriptions are paramount. Vague entries like "document review" are often insufficient. Instead, billing entries should be specific, for example:

• "Review and analysis of 12 months of Client A's bank statements to identify sources of income and non-marital assets (3.5 hours)."
• "Data entry of three years of credit card statements into spreadsheet for categorization of spending habits (5.0 hours)."
• "Searched and tagged 24 months of financial records in e-discovery platform for transactions related to 'undisclosed business' (2.0 hours)."



Ultimately, the "reasonable" time for a paralegal to complete this task is the time that is necessary to do a thorough and accurate job based on the specific requirements of the case. Furthermore, the conclusion that document review time is contingent upon numerous factors is reinforced by the influence of the attorney's and paralegal's individual work styles on the outcome – it truly is a matter of it depends.

 Open communication between the supervising attorney and the paralegal regarding the scope of the review, the expected timeframe, and the desired deliverables is essential to ensure both efficiency and the delivery of high-quality legal work. 

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