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
- Go to Setup > Firm Settings > Accounting
- Each Billing Method type (Hourly, Fixed Fee, Contingency) can have a different selection
- These are global settings affecting all matters in the firm.
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 cost.
Choose Default Legal Fee Account for all matter types
- Here you can select which income account should default for all matters. You can also override the fee income account on the matter level. This will allow you to track income by practice area. For steps on this, Click HERE
Payee SetupCosmoLex allows you to assign the expense account to the 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(s) from the drop-down menu. You can use the split icon and choose multiple accounts, e.g. Mortgage Company split account > 2600 Notes Payable, 6320 Interest Expense, then save
- Option 2 - On Bank Transaction Screen > Payor > Use arrow to enter details > choose account(s) from drop-down > 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.
Note that if you need to migrate any previous accounting information into CosmoLex, Click HERE