Related Posts
Me in the club
I need more coffee ...
Is this group still popping or??
Just found out this existed! 27F in London
This is a good use of my paycheck, right?
Additional Posts in Small Law / Solos
Does anyone have experience with Ben Glass’s “Great Legal Marketing” programs? https://greatlegalmarketing.com
I ordered a free “starter kit” from his company and received a decent-sized box with some books and audio CD’s. Haven’t listened to the CD’s yet, but the books aren’t bad, with plenty of practical advice.
Now he’s running a promotion where you can get two months of his basic-level course for just $19.95 to cover the cost of shipping. It seems that Ben is one of the better-regarded legal marketing “gurus” out there.
New to Fishbowl?
unlock all discussions on Fishbowl.
I’m not a CPA or tax lawyer, but I believe you can’t write off bad debt if you’re using cash method accounting.
It would be unpaid work product. I don’t see how this is any different than a carpenter who makes a personalized piece that can’t be resold, and the customer bails, or takes it and doesn’t pay.
My accountant decides based on the year. It’s only happened to us once tho, 99.99% of clients pay.
As attorneys, our product is time. We do not make trinkets to sell that can be stolen, destroyed, or donated. We spend our time, which has a definitive value, to address problems. So it only makes sense that when a client does not pay, or when we do pro bono work, it should be considered as a loss or a donation—and should be valued based on time spent and our hourly rate.
I’d previously been given the advice to not sue them, bc it will just turn into an ethics complaint or malpractice suit despite the lack of any ethics violations or professional negligence. I’ve heard of companies “writing off” bad debt as you suggest, but I haven’t done that yet so not sure if it counts as a deduction on income or if it’s just an adjustment in the books. Would love to learn more. Long winded way of saying I’m following this thread.
My firms tries to get them to pay through payment plans and occasionally price reductions. If they don't pay after we try that multiple times, then we send them to collections. I can see how it could backfire with bar complaints, but probably 95% or more end up paying, so we've only ever sent maybe 3 total to collections.