What legal billing increment should our law firm use?

CosmoLex Team

Deciding on what minimum billing increment your firm should use can have a big impact on efficiencies. There’s no one right answer, but they each come with benefits and drawbacks[1]. When billing, lawyers will typically choose one of the following increments to track their time. If tasks take less time than a given increment, the time is rounded up. Keep … Read More

Should my law firm outsource our legal billing?

CosmoLex Team

Billing is an essential task for law firms, but doing it can take up valuable time. Studies show lawyers can spend up to an hour a day processing client payments and preparing and sending invoices[1]. To maximize billable hours, it can make sense to outsource legal billing. However, for some firms it may make sense to hire someone to handle … Read More

Can my law firm pass on charges for payment fees to my client?

CosmoLex Team

Accepting credit cards is a benefit to both your clients and your cash flow, providing an easy way to quickly take payment for invoices without requiring available funds or a mailed check. However, accepting credit cards comes with a service charge, usually ranging from 2-5%. For lawyers who are trying to maximize their profits, the question arises of whether or … Read More

How should our firm pay credit card merchant fees?

CosmoLex Team

When accepting credit card payments from clients, fees should be paid out of the firm’s operating account and never from the client trust account or taken out of funds being deposited into a trust account. Traditional merchants pull the processing fees from the account the funds were deposited to. If your firm will be accepting retainer payments where the funds … Read More

How can my law firm avoid bad debt?

CosmoLex Team

Bad debt can take up a significant portion of a firm’s income. While it can be challenging to avoid bad debt entirely, law firms can minimize its likelihood by doing the following: Be upfront with pricing Make sure from the start that your client is aware of what the payment amounts will be. If you have a flat-fee structure, lay … Read More

How should I set my hourly rate as a lawyer?

CosmoLex Team

Setting your rates is a combination of multiple factors including[1]: Geography Experience Firm size Specialization/type of case Reputation Look at what others in your area are charging, and assess the type of setting you’re in. Rates in large cities will be larger than those in suburban or rural areas. See what others nearby are charging to get an idea of … Read More