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Before you get started
1. Decide how you want to handle reimbursed client costs, i.e. Advanced Client Costs, Reimbursable Client Costs, or both (depending on matter type).
2. Decide how you want to handle income, e.g. one fee income account (included as default) or use separate sub-accounts for each practice area.
Choose Default Accounts for Client Costs
- Each Billing Method type (Hourly, Fixed Fee, Contingency) can have a different selection
- Why is Cost of Goods Sold NOT an option for tracking matter costs?
- COGS is intended for goods purchased for resale and CosmoLex does not allow its use to track matter related costs.
Choose Default Legal Fee Account for all matter types
Here you can select which income account should default for all matters. This is a firm-wide setting, but you can also override the fee income account on the matter level.
A good use of this feature is to track income by practice area. For steps on how to track income this way, click here.
CosmoLex allows you to assign an expense account to a payee. This way the accounts are memorized when entering an associated expense.
Best Practice Setup
- Go to Contact > Add Payee OR you can add the payee when entering the transaction:
- Option 1 – On Add Payee screen, choose the account from the drop-down menu in the Default Account field. You can use the split icon and choose multiple accounts. For example: Mortgage Company split account > 2600 Notes Payable, 6320 Interest Expense, then save
- Option 2 – On Bank Transaction Screen > Enter Payor Name and enter details under More Info > choose account from the drop-down menu in Default Account Field. You can use the split icon and choose multiple accounts > check box “Remember Payee”. This will memorize payee information and link to the chart of accounts chosen.
- Once Payee is set each time you use that Payee, the memorized account(s) will be pre-filled. You can still select different accounts from the chart of accounts if desired.