When should our law firm’s client accounts be sent to a collections agency?

CosmoLex Team

When clients repeatedly fail to address an outstanding invoice, you have to evaluate all your options for collecting the debt. First, you’ll want to be familiar with the laws and ethics rules in your jurisdiction. You want to have the client settle their account, not run afoul of the law yourself. The scope of some state laws on debt collection … Read More

How do I read my law firm’s balance sheet?

CosmoLex Team

The balance sheet provides a crucial tool in understanding your firm’s financial health at a glance and determine its current value. Many accounting programs can easily produce this report for you. Not only can this help guide decisions, but you may also need to present this information in order to obtain a loan. The balance sheet follows a straightforward formula: … Read More

How is law firm accounting different from other types of business accounting?

CosmoLex Team

Law firms, like all businesses, need to produce in order to evaluate their operations, financial position, and cash flows.[1] All general and many legal-specific accounting programs can produce these statements provided the business enters all financial transactions into the software. Because law firms receive retainers and advanced fee deposits from clients and must hold these funds in trust until earned, … Read More