What is the difference between a Hard Cost and a Soft Cost?

Hard Costs are directly paid to a vendor. An example of a this would be Court Fees.

In contrast, Soft Costs are an internal cost or an indirectly associated expense such as Office Supplies.

Hard Cost

Hard Costs are entered through the New Check modal

1. This can be accessed through the Quick Add menu by selecting in the top menu bar and selecting New Check (Hard cost) under Billing & Accounting.
   
   
   
   Or,
   
   
2. Click the Accounting icon to access the Accounting module and select the Banks & Registers tab, then click + to the right of the tab bar and select New Check (AP) from the menu that displays.
   
   
   
   
3. The New Check modal displays.
   
   Note: When a Hard Cost is created, the Account entered under the New Check section is reduced/credited, and the selected Account/User under the Assign Accounts & Matters is increased.
   
   
   
   Complete all the required fields marked with a purple bar and as many optional fields as you wish.
   
   
   • If you would like to bill your client for an expense, ensure that their MATTER is selected from the drop-down list and the checkbox beside BILL is not selected. This expense shows when you invoice Unbilled Activities. Once the invoice is paid the original increase of the selected account will now decrease by the amount paid.
     
4. Click either SAVE & CLOSE or SAVE & PRINT to complete the process.

Soft Cost

1. This can be accessed through the Quick Add menu by selecting in the top menu bar and selecting New Expense (Soft cost) under Time & Expense.
   
   
   
   Or,
   
   
2. Click the Time icon to access the Time module and select the Expenses tab, then click + from the right of the tab bar and select New Expense (soft cost) from the drop-down that displays.
   
   
   
   
3. The New Soft Cost modal displays.
   
   
   
   Complete the required fields marked with a purple bar.
   
   
   • Enter or select an option from the drop-down list in the MATTER field.
   • Optionally enter or select an option from the drop-down list in the SOFT COST TYPE field.
   • Enter an EXPENSE DESCRIPTION, QUANTITY and UNIT PRICE.
   • Select another USER from the drop-down list or accept the default of the originator.
   • Use the calendar controls to enter a date or accept the default of Today.
   • Select or unselect the BILLABLE checkbox.
     
     Note: Soft costs are not passed to you client unless the BILLABLE checkbox is selected. If left unchecked, the cost is added to your Unbilled Activities and is entered into your records when the soft cost is invoiced on accrual basis and paid on a cash basis. Your Account will increase/debit and the Soft Cost Revenue account will increase/credit when it is paid.          
     
     
4. Click Save & Close to complete the process or Save & New to repeat the process.