Objective:
- What is a Hard Expense?
- What is a Soft Expense?
- What is Disbursement?
- What is the difference between Expenses?
- SRAs Code of Conducts effect on UK Expenses?
- How to add an Expense?
- What is Manage Category?
- What are Hard and Soft Costs?
- Europe
- EMEA
Environment:
- Clio Manage
Additional Information:
- Clio And The Requirements of SRA's Code of Conduct Handbook
- Hard (Disbursements) and Soft costs help firms to accurately classify their expenses and are important for business intelligence, compliance with audits performed by law societies or bar associations, and for reporting taxes.
Answer:
Hard costs (Disbursements) are expense recoveries paid on behalf of a client to a third-party vendor (e.g. Court filing fees, translators, medical records).
A Vendor (e.g. Court) can be added to a Hard Cost by creating a 'New Contact' under 'Companies'. This is not a requirement but is advised as a best practice.
A Vendor (e.g. Court) can be added to a Hard Cost by creating a 'New Contact' under 'Companies'. This is not a requirement but is advised as a best practice.
NOTE: Hard costs generally should not be charged VAT
Soft Costs (Expense Recoveries) are expense recoveries that are not directly related to a payment for a third party vendor (e.g. photocopies, postage).