Billing is not revenue. Payment is. But CRA collects taxes on billing (accrual accounting) — which means law firms must grapple with non-paying or slow-paying clients. CosmoLex gives you advanced functions to improve your collection efforts. And when the money does arrive, CosmoLex makes it easy to distribute it to all deserving parties.
While issuing invoices for the current month, you can label all outstanding balances as “Prior Balances” and seek full payments. You can also send “past-due invoice” reminder emails to your clients – with all the options you use for regular invoices. That includes one-click batch processing & sending. And customized messages. CosmoLex will help you filter invoices by the payment due date or amount due to target the most critical delinquent accounts.
Evergreen Retainer Reminders
Your firm’s invoice templates can include the automatic addition of a “retainer replenishment amount” as part of the total bill, providing another opportunity to bring every client’s retainer back to the agreed amount (evergreen retainer).
Low Retainer Reminders
For matters that rely on an evergreen retainer, CosmoLex can send retainer reminders when the retainer balance reaches a threshold that you define. Here again, you can send “low retainer” reminder emails to multiple clients with one click. And CosmoLex lets you filter low retainer reminders by a “replenish amount” of your choosing.
Advanced Invoice Changes/Write Offs
Due to accrual accounting requirements in Canada, an Invoice can’t be altered once issued (as invoice is considered “earned” upon billing.) CosmoLex provides advanced Invoice “change/write-off” function that can allows invoice change — but on future date. This allows you to efficiently add finance charges, late fees, or in the case of non-payments, write off invoice to recover previously paid income & sales taxes.
Automated Revenue Distribution
Law firms often compensate their partners, or staff members, with pro-rated fee/award distributions based on an individual’s contribution to income. Accurate distribution calculations can be complex — with multiple components such as costs, charges or fees from multiple sources. Some distributions are paid in installments. The distribution percentage may vary from matter to matter. CosmoLex automates these complex calculations 100%. All you need to do is specify the distribution percentage for billers, as well as for various matter parties (originating lawyer, matter owner, working lawyer, etc) and generate the report.
CosmoLex provides itemized invoice-by-invoice breakdowns, along with summaries by invoice, matter owner, or individual parties.