Why Is the Difference between Hard Costs and Soft Costs Important?

CosmoLex Team

Hard Cost vs Soft Cost

In the course of doing legal work for clients, many law firms end up covering hard costs and soft costs for their clients. It’s common to ask for reimbursement of hard costs, but approaches to soft costs differ. Whichever approach your firm chooses must be addressed in the client agreement. To make sure you have every base covered, it’s essential … Read More

What Are the Three Bank Accounts Every Law Firm Should Have?

CosmoLex Team

3 Bank Accounts

Lawyers go to law school—and graduate to find themselves running businesses. Yet whether you’re starting a solo practice or growing an existing firm, the same accounting rules apply. Every law firm should have three basic bank accounts: an operating account, a savings account, and a trust or IOLTA account. And despite trust laws varying state-by-state, there are also a few … Read More

When should my law firm outsource bookkeeping?

CosmoLex Team

Bookkeeping means recording financial transactions—and it’s distinct from accounting, or the active keeping of financial accounts. So, how do you know if your law firm should outsource your bookkeeping? Below, we’ve shared a few common scenarios that indicate you should consider outsourcing. If you’re putting off tasks If your bookkeeping falls behind, it can be really hard to get back … Read More

What expenses are tax-deductible for law firms?

CosmoLex Team

As we approach tax season, it’s time to start thinking about—and gathering the paperwork for—expenses that are tax-deductible. We’ll review some of the most common deductions for law firms. Convenience fees For lawyers who accept online payments, including via credit cards, the convenience fees are tax-deductible. While this used to be a rarity, accepting online payments has become increasingly common … Read More