Most contingency agreements specify the firm will receive a percentage of the settlement plus expenses. However to collect those expenses, the attorney must be able to provide an itemized list. CosmoLex legal billing and accounting software makes it easy to enter costs and to generate an expense report when the case is over. Since CosmoLex is cloud based, attorneys can enter expenses from anywhere so no fees are overlooked.
After settlement CosmoLex calculates the contingency fee plus the expenses so the firm can see exactly how much money goes to the client as well as other parties such as insurance companies.
Settlement funds are initially deposited into trust funds before being disbursed to the receiving parties. Although contingency trusts might seem simple, law firms should use billing software like CosmoLex that includes a trust accounting system. This way they can ensure that the funds are not accidentally mishandled, and they can offer the reconciliation and financial report required to remain in compliance with trust management regulations.
Clients are often surprised that when a case is decided the settlement funds don’t magically appear in their bank accounts. Court settlement is only the beginning. Actual collection of the settlement can take months or years, and the money is often paid out in installments.
CosmoLex law practice management software allows law firms to keep a matter open, track each settlement payment, disburse funds to appropriate parties, and generate reports to keep all the transactions straight. No matter how long the collection process lasts, the billing will always be up to date.
Don’t complicate simple contingency cases by not using the right tools. Try CosmoLex attorney time and billing software for yourself free for 30 days to see how much simple contingency cases can be.