In some states, and with some services you can apply tax to your client invoices. Please be aware of your local guidelines to ensure you are taxing the proper amounts.


1- Entering the Tax Amount
  • Go to Setup > Firm Settings > Financial Settings
  • Here you have a field for Sales Tax Rate(to be applied to Expenses) and Service Tax Rate(To be applied to your legal fee


 
  • Enter the percentage to those fields which apply. 
  • Click Save at the top right to save changes.

2- Set Matter as Taxable
  • When adding (or editing a matter) go into Advanced Settings > Billing Information and change the Tax Status to "Taxable"

 

  • This will set all future Time/Expense cards as taxable by default, and the % provided in settings will apply to the invoice.


If you need to tax only certain items, you can leave the matter as "Non-Taxable" and then with each Time/Expense entry you have the option in Advanced Settings to change the tax status for that item only. Here you would UNCHECK the "Non-Taxable" flag, if you wish to apply tax


Once you generate this matters invoice, you will see the "Tax Applied" field populate with the proper value.