On the surface, fixed fee arrangements are quite simple. However any case can become complex and law firms need time and billing software that can handle both simple and complex billing arrangements.

CosmoLex legal billing and accounting software can handle both fixed fee models: fixed plus cost for one-time cases, or monthly retainers for ongoing legal matters. Although fixed fee cases are typically paid up front, one reason law firms like the arrangements, CosmoLex can also generate invoices if needed.

Although you can simply charge your fees and do the work, industry experts say that even fixed fee law firms should track hours and expenses associated with each matter. This allows you to compare your actual costs with the fees you charge to find if you are losing money by charging to little, or losing clients by charging too much. Hours and expenses can be entered as unbillable in the attorney time and billing software so they will show up on your reports but not on client invoices. Cloud-based software makes it easy to enter all expenses associated with a matter from anywhere you have internet access.

You never know when a simple case might have unforeseen problems, and you need to be prepared to bill for unusual expenses. You can easily add expenses or billable hours to a flat fee case to invoice clients for work above and beyond what is reasonable for the fee. CosmoLex handles the hybrid billing system easily.

Trust Fund Management

Fixed fee matters often involve handling of trust funds and you need a billing solution that includes a trust accounting system. Even if you don’t typically handle trust accounts, it’s better to have the capability and not need it than to be left in a trust case without the right tools. CosmoLex includes the ability to:

  • Create the audit trail required by state trust compliance laws.
  • Track individual trusts by matter, even if all of your trust funds are comingled in a single bank account.
  • Ensure you don’t accidentally overdraw a trust account, effectively paying one matter with funds from another.
  • Reconcile bank account statements monthly.
  • Print disbursement checks.
  • Generate three-way reconciliations and other reports.

CosmoLex law practice management software makes fixed fee billing even easier, and gives you more time to practice law. Try CosmoLex free and find out for yourself.

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