B2B platform for automating LEDES and PDF invoices for law firms and their clients

Project description

For a client from the US, we created a platform to simplify and speed up invoicing, connecting law firms with their client organizations. It enables the import and validation of invoices, primarily in LEDES and PDF formats, as well as a comprehensive approval workflow based on many different conditions and the synchronization of payments to external accounting systems. For PDF invoices, we use automated data extraction with human-in-the-loop validation. The goal is to speed up invoice circulation, reduce manual work, and make approval and payment status more transparent. 

Client needs / challenge

At the outset, we defined the main issues that needed to be resolved with the client. These were:

• process various invoice formats (primarily the LEDES format specific to lawyers, followed by the classic PDF format) in a single process,
• speed up the approval cycle and reduce blocking validations,
• ensure secure access based on roles and type of organization,
• connect invoicing with external accounting systems,
• reduce manual work when transcribing data from PDF files.

Our solutions

We designed a solution based on three parts (API, web, and worker) and divided the import into phases so that critical checks were performed before the invoice was created, while "soft" checks ran in the background.

The LEDES format, specific to law firms, is the de facto industry standard. The problem is that invoices often contain dozens or even hundreds of items that must be correctly processed and recorded. This is very time-consuming when done manually and prone to errors. That is why we have automated the processing of invoices in the LEDES format, thereby significantly streamlining and speeding up the process. 

For PDF invoices, we have implemented automated data extraction with human-in-the-loop validation. The approval workflow is complemented by document collaboration and supports review policies for assignment and approval management. All this is aimed at further speeding up and streamlining the entire process. 

The integration layer enables automatic document creation in accounting systems and reverse synchronization of payments. 

Technology

Within the project, we stick to established, proven, and scalable technologies that we also use in other projects. We primarily used NestJS, Next.js, Node.js, and cloud-native architecture. Of course, we also used an auth layer and the corresponding ORM. 

Results for the client

The project has many positive impacts on both the clients themselves and their client organizations. These include, for example:

• faster availability of invoices thanks to asynchronous validation,
• significantly less manual work thanks to automated data extraction from PDFs with human-in-the-loop validation.
• transparent and auditable approval process,
• more accurate payment status thanks to synchronization with accounting,
• scalable platform for multiple organizations.

Challenges overcome

The biggest challenge was the need to unify the process for structured LEDES files and unstructured PDFs while maintaining a fast response time for users. The solution was to divide validations into blocking and non-blocking phases and introduce automated data extraction with human-in-the-loop validation.

Future proofing / further development

The architecture is designed to allow for further integration of third-party tools. Whether it's adding more accounting integration providers, expanding "soft" validations without impacting import speed, and so on. We look forward to further developments in the future. 

Takeaway

This project combines automated data extraction, accounting integration, and invoice processing in various formats into a single unified system. The result is a faster and more reliable invoicing process with a strong emphasis on security, auditability, approvability and flexibility, while significantly reducing errors. 

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