What is a virtual law firm, what benefits do they provide lawyers and clients, and how to build one?

Are you considering setting up a virtual law firm? You’re not the only one.

The legal industry is one of many now reaping the benefits of a flexible workplace. The number of virtual lawyers has reached a record high in the UK, proving that there’s a case to be made for the virtual law firm.

But is it the right move for you?

Whether you’re a large firm looking to transition from your traditional structure or a startup considering going entirely remote, going virtual can be daunting. We’re going to explore some benefits and tips to help you set your virtual law firm up for success.

What is a virtual law firm?

It’s simple, a virtual law firm operates virtually instead of in a brick-and-mortar office.

Rather than commuting to work and communicating with clients face-to-face, lawyers work from home and use modern communication technologies.

They also use secure, encrypted online portals to share, manage, and collaborate on documents with clients.

Virtual law firms are regulated just as stringently as traditional law firms, but they come with a bunch of perks. Those include better client experiences, reduced costs, and increased talent and client accessibility.

Advantages of taking your legal practice virtual

A better client experience

No longer are clients forced to drive down to your office on their day off. Instead, they can simply hop on a voice or video call to speak to you at their own convenience.

Or, they can log onto your secure online portal and access the documents they need without contacting you at all.

This flexibility makes for a better client experience. To achieve it, you need a communications solution that centralises your lawyer-client interactions. With Dialpad, for example, you can communicate with clients via phone calls, SMS, instant messaging, and video chat inside one singular platform.

Increased flexibility and work/life balance

59% of lawyers say that working from home has a positive effect on their wellbeing and job performance. This is pretty unsurprising—stress and burnout run rampant in the legal industry.

Remote lawyers are free of (at least some of) the stresses that plague traditional law firms. They can manage their schedules more effectively and avoid toxic office politics. Best of all, they can make much better use of the hours they’d normally spend commuting.

Reduced costs

With no need to rent out a physical office space, you immediately reduce overhead costs. But there’s more to it than that.

Virtual law practices save money by using centralised cloud-based repositories and integrative technology solutions. For example, they use communication platforms and legal practice management software instead of expensive, siloed in-house solutions.

Fewer restrictions

Unhindered by geographical limitations, you can get the best talent on board regardless of their location. And, you can reach clients from all over the UK (and elsewhere).

This helps new firms get their business off the ground as they don’t have to directly compete with local competitors.

Challenges any virtual law firm must overcome

Cybersecurity

Law firms handle incredibly valuable, sensitive client data. Which, unfortunately, makes them a prime target for cybercriminals.

For firms where data is stored, managed, and distributed entirely online—such as the virtual law firm or paperless law office—robust cybersecurity is vital. But it can be challenging to keep up with threat intelligence while you’re trying to run a successful business.

Enforcing cybersecurity measures (strong passwords, data encryption, VPNs, etc.), is a must in order to maintain data security and confidentiality.

Legal and ethical limitations

While it’s perfectly legal to use a virtual office as a business address, there are some unique legal and ethical risks to navigate. Most notably tax implications (such as the legal and ethical risks that come along with filing expenses) and privacy and confidentiality concerns.

Lawyers who don’t possess the cybersecurity knowledge or resources needed to secure sensitive documents can put clients’ information at risk. There’s also the privacy and safety issue of registering your home address as your business address.

Collaboration and company culture obstacles

Remote lawyers don’t have the convenience of popping into a colleague’s office to ask them a question. Nor do they have the same opportunities to engage in spontaneous brainstorming or casual chit-chat. This can result in poor communication, ineffective collaboration, and a lack of company culture.

However, with the right communications solution, you’ll have no problem fostering a collaborative culture.

How to start a virtual law firm: Hints and tips to set you on your way

Create a secure online portal

This is one of the first things you need to do when you’re setting up a virtual law firm. An online portal enables you to share sensitive documents with multiple parties securely and efficiently.

Instead of handling and mailing volumes of paper documents, lawyers and clients can simply upload documents onto your online portal. From there, they can review, sign, and refine documents right from their mobile or desktop.

Even better, this can be done in real-time with 24/7 accessibility. So, clients can immediately access, review, and respond to updated documents and case files without lengthy waits.

Prioritise security and ensure that your online portal is fully encrypted to prevent breaches, ensure compliance, and establish lawyer-client trust.

Use sophisticated communications software

From discussing sensitive cases with other professionals to interacting with emotional clients, effective, reliable communication is the backbone of a successful law firm.

But in lieu of a physical office, virtual law firms need sophisticated phone systems to facilitate the same effectiveness. And don’t be fooled—a modern law office phone system is more than just a phone system.

AI-powered communications platforms like Dialpad facilitate multiple methods of encrypted communication, from instant messages and SMS to voice and video calls:

This is ideal because rather than use a collection of different apps—each with unique logins, user interfaces, and controls—you can communicate with everyone via one single solution. That’s a lot of time and money saved.

You still get all of the powerful business phone features that you need to deliver a high-quality telephone experience. Features like IVR, custom routing, and visual voicemail ensure that your clients can reach you from anywhere.

To streamline your communications strategy even further, you can also make use of integrations. Take Dialpad’s Clio integration, for example—not only can you call clients from inside Clio:

But Dialpad also automatically syncs and logs your calls and meetings, so you’ll never lose track of your billable hours again.

Streamline processes with AI

Despite the legal industry’s initial wariness towards AI, it’s quickly becoming appreciated for its productivity-enhancing capabilities.

If you’re starting up a virtual law firm from scratch, then you’re in luck. You aren’t restricted by complex legacy systems and traditional processes, giving you a competitive edge from the get-go.

There are plenty of AI applications that you can take advantage of as a virtual law firm. Even better, you can access them through advanced communication solutions like Dialpad.

Dialpad Ai can generate hyper-accurate transcriptions of calls and meetings in real-time, complete with timestamps, action items, speaker talk times, and more:

This not only eases your administrative workflow, but it helps you maintain legal and ethical compliance.

Virtual law firms: The future of legal advice?

The legal industry is changing. As clients demand convenient digital experiences and lawyers push for flexibility, virtual law firms are emerging to meet these needs.

With the right software to use as a virtual law firm platform, you can do the same.

Ensure that your virtual law firm has a secure online portal and robust communications technology that delivers SMS, instant messaging, and video chat alongside phone calls. Why not take advantage of free trials and try them out before you buy?