Is a contingent fee tracked as Accounts Receivable?

CosmoLex Team

Law firms track accounts receivable (A/R), the amounts that clients owe a law firm for services rendered, by generating an invoice showing the amount due during a given time period. When a law firm, however, agrees to accept a contingent fee as compensation for services rendered, the client doesn’t owe anything to the firm until the attorneys secure a recovery … Read More

Do I need to track my time for a contingent fee case?

CosmoLex Team

Contingent fee arrangements occur when a law firm provides services to a client in exchange for a percentage of future recovery in the matter. Because the law firm doesn’t collect a fee unless the client receives a recovery, and because the fee collected is a percentage of the total recovery, law firms generally do not send out monthly invoices to … Read More