Can our law firm write off bad debts?

CosmoLex Team

Bad debt is when a customer won’t pay their bill and you can’t collect it. It’s frustrating but you don’t have to take a total loss on bad debt. You may be able to take a deduction for them. However, there are caveats to this. To write off bad debt, it must meet several requirements. First and foremost, the debt … Read More

How can our law firm avoid a billing dispute?

CosmoLex Team

Billing disputes are stressful for everyone. They’re time-consuming, stressful, and can hurt your reputation. However, there are a number of ways you can avoid disputes over billing and collection. By implementing these best practices, you may be able to head off conflict before it begins. Focus on transparency Be clear and honest with your clients about costs, timelines, and possible … Read More

Can my law firm charge our clients for credit card processing fees?

CosmoLex Team

The ability to take credit card payments is a major need for law firms. 80% of consumers prefer using cards over other forms of payment and more than half of all credit cardholders use their cards for daily expenses. That’s a lot of credit card users. Credit cards are convenient but they do come with downsides for the payee. The … Read More

How should our law firm choose a bank?

CosmoLex Team

Business bank accounts are a necessity for law firms. Choosing where to open these accounts requires some research, along with asking specific questions, to make sure you’re selecting the bank that’s the right fit for your firm, needs and compliance. Fees and limits Most bank accounts have fees associated with them. However, depending on the amount of money you’ll be … Read More

How can our law firm start accepting credit cards?

CosmoLex Team

Accepting credit cards helps cash flow, provides a convenient way for clients to pay, and gets rid of the time spent processing checks and applying payments. To start accepting credit cards, your firm should take the following steps. First, you need to decide on a credit card merchant. Be sure to keep in mind that accepting credit cards for law … Read More

How much will our law firm be taxed?

CosmoLex Team

The amount that a firm is taxed varies by firm, but it’s likely a big expense for your firm. A wide number of factors play into what the total dollar amount is, but one factor you should pay particular attention to is your tax rate[1]. The Tax Cuts and Jobs Act of 2017 made substantial changes in tax rates for … Read More