Differentiating Between Hard and Soft Expenses

Expenses can be divided into two main categories: hard expenses and soft expenses. hard expenses, also known as direct or tangible costs, are expenses directly linked to a specific matter. These are measurable, identifiable, and clearly associated with the matter in question, such as court filing fees or expert witness costs.

On the other hand, soft expenses, also called indirect or intangible costs, do not have a direct link to any particular matter. These may include general office expenses or administrative fees. While soft expenses are more difficult to quantify and may not have an obvious impact on the final deliverable, they still represent costs that must be accounted for in the overall financial management of your cases.