How do invoice payments need to be allocated?

CosmoLex Team

Not all invoice payments can be directly recorded as revenue, and doing so can have negative repercussions for the firm including an unnecessary tax liability. Law firms need to apply payments in the appropriate order once payments are received. Payments should be applied in the following order once taken in: Taxes Cost recovery, including reimbursable client costs Late fees and … Read More

What client trust funds can be used to pay an invoice?

CosmoLex Team

When you’ve worked on a matter and are billing fees to a client, those fees can then be deducted from the client’s trust account. You can also look to seek payment on an invoice for reimbursement of advanced matter costs. However, it is recommended to have the client view and approve the invoice prior to moving the funds[1]. With trust … Read More