Income Statement By Attorney, Dept, Practice
Area
In a multi-attorney firm, it’s critical to track revenue & business expenses by partners or locations or even by practice area. You may even wish to create separate profit centers for different practice groups or equity partners. CosmoLex provides advanced accounting features for allocating your collections to each attorney based on originating attorney, working attorney etc. General business expenses can be allocated to different profit centers (set as “classes”). Class-based income statements can provide deep financial insight into your profit centers (Reports are under development).
Alternatively, if your needs are basic and, for example, you just wish to know which practice areas are most profitable, you can create multiple “income sub-accounts” in your chart of accounts and select these as part of the matter setup. That’s it. After that, as matter invoices are paid, fee income is credited to its specific income account. Your income statement will contain these income sub-accounts.