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 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