Hard and Soft costs in triConvey

Tracking Hard costs and Soft costs is a useful tool for financial management.  

Table of Contents

• Getting Started
• Difference between Hard and Soft costs
• Setting up Hard and Soft costs
  • Accounting software mapping 
  • Disbursement activity codes

Getting Started

These terms help differentiate between direct expenses incurred on behalf of clients and the firm's operational costs in your accounting software (Xero or MYOB).

Difference between Hard and Soft costs

Hard costs are costs paid directly to the supplier on behalf of a client. These costs can be included on the client invoice when used in conjunction with anticipated disbursements. 

Examples of Hard costs: 

• Court filing fees 
• Expert fees

Soft costs are costs that your firm can choose to pass to the client. These costs are typically harder to allocate to a specific client and may be covered through the firm’s hourly rates or fixed fees. 

Examples of Soft Costs: 

• In-house photocopying, printing, or scanning 
• Postage

Setting up Hard and Soft costs

Accounting software mapping 

It is possible to set up hard and soft costs for both cost recoveries and offices payments/cost liabilities in the Xero or MYOB settings in the triConvey Companion Site Web App. 

We recommend setting up the integration in consultation with your accountant or bookkeeper. 

If hard and soft costs do not apply to your firm’s accounting processes; for both hard and soft costs, select the same income (cost recoveries) or expense (office payments/cost liabilities) accounts from your firm’s chart of accounts.

Disbursement activity codes

You can streamline the use of hard and soft costs with activity codes. You can specify in a disbursement activity code if this entry is a hard or soft cost.