Five Must-Have Features for Your Law Firm Accounting Software

accounting software for law firms

However, like the other mentioned accounting software, XLedger lacks some of the capabilities needed for a complete law firm accounting experience. But that is a problem that can be addressed and solved with the integration of the right legal billing and time tracking platform. However, while these platforms provide functions that allow you to perform your firm’s basic accounting tasks, they fall short when it comes to some of the specific needs of a law firm. With the right combination of general accounting software and a comprehensive legal billing system, you can ensure that your law practice has the tools necessary to handle all of your accounting needs accurately and efficiently. Our integrated legal practice management software manages the general bookkeeping tasks required for credit card payments, like managing where funds are deposited, how they are recognized, how to handle refunds, and more.

accounting software for law firms

Terms, conditions, pricing, features, service and support are subject to change without notice. Manage them based on your state’s specific rules within your Chart of Accounts. Generate financial statements like cash flow, profit and loss, or balance sheets. We recommend ensuring that the solution you choose offers sufficient support in the form of live chat, email, or documentation and trying out any demos or free trials and plans before committing. However, if you’re in a different time zone, the time might slightly vary for you.

What is law firm accounting software?

It’s worth noting that this is also available in other accounting software like Bonsai and Xero, but a dedicated legal accounting software tool like PCLaw offering them is very commendable. Turbotax isn’t strictly speaking an accounting software – it’s your virtual taxing guru. A few accounting software solutions on the list offer a handful of tools to help you with your taxation.

Having a tax expert like Turbotax helps you get the maximum possible refund from your filings. After all, the last thing you want is for the government to take a substantial chunk out of your hard-earned money. Once you sign up with Turbotax, you can get unlimited support from their experts, not just in the taxing season but all year round.

And while some technology providers help with setup, ongoing support ensures that if any problems do arise, you’ll be up and running again quickly. The most advanced accounting solution is worth next to nothing if it’s not convenient to use. Make sure when looking at attorney accounting software to not only look at the list of features but to actually see and demo them in action.

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Unsurprisingly, having to deal with a combination of all these factors can eat away at precious time that would better be spent on clients. If you are a Xero user, you will also find a number of application integrations to help you manage your law firm’s accounting. In particular, most of these applications will help you manage your time tracking. IOLTA reconciliations will still need to be managed, and this is something your accountant or bookkeeper can help you do. With a 100% five-star review rating on the QuickBooks Online App Store, LeanLaw is quickly becoming a favorite among accountants and bookkeepers who work with law firms, as well as law firms themselves.

FrеshBooks is thе bеst small law firm accounting softwarе duе to its usеr-friеndly intеrfacе, tailorеd fеaturеs, and comprеhеnsivе functionality. It offers еxpеnsе tracking, timе tracking, and cliеnt managеmеnt fеaturеs, еnabling small law firms to stay organized and еfficiеntly managе thеir financials. However, Oracle NetSuite has two standout features that make it well worth considering as well. Yеs, accountants commonly use Microsoft Excеl as an intеgral tool for data analysis, as it provides functions and formulas to perform calculations and gеnеratе financial rеports.

Best Legal Accounting Software for Lawyers

MyCase Accounting is a fully integrated, cloud-based, law firm accounting software that centralizes your firm’s financial data, eliminating redundant data entry across multiple systems. Law firm accounting software ensures your firm stays productive and profitable by tracking billable hours in real-time as well as allowing attorneys to manually enter hours. Without time tracking functionality, your attorneys could lose track of how long they spent on tasks or forget to charge clients for time spent. If clients aren’t being billed properly for your attorney’s time, the firm will lose money. Of the dozens of options available, you want to choose the one that combines the powerful features you need, at a reasonable price — and that is easy for you and your staff to use.

  • You are either going to damage your clients and reputation by overcharging them or damage your firm’s bottom line by undercharging for your services.
  • Accounting software is an essential part of any law firm’s legal tech toolbox.
  • Of the dozens of options available, you want to choose the one that combines the powerful features you need, at a reasonable price — and that is easy for you and your staff to use.
  • This data shows that clients find software that securely accepts online credit card payments is more convenient.
  • Find thе right balancе bеtwееn cost and fеaturеs to еnsurе thе softwarе еfficiеntly supports your firm’s financial managеmеnt nееds without compromising financial stability.

You work hard to make your practice a success, so be sure your hard-earned money is protected. Wave uses both physical and digital protection, like read-only and 256-bit encryption to connect to your bank, and PCI Level-1 certification for credit card transactions. CosmoLex’s cloud-based software is more accessible, secure, and cost-effective than traditional desktop programs that require you to create a patchwork of tools to run your practice.

Law Practice Management, Billing, and Accounting are three related, but discreet functions. And each can be managed with different software Contingent Asset: Overview and Consideration (or, all in one software suite). This is where the fuzzy terminology makes understanding what any given software package does confusing.

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Time tracking records are quickly imported into invoices that are completely customizable to your firm’s needs. With Wave, you can import your financial information into easy-to-understand graphs, charts, and dashboards so you can see at a glance where your income is coming from, and which expenses are cutting into your bottom line. Plus you can dig down deeper with expense tracking and customized reports to show month-to-month comparisons so you can make better business decisions. You’ll have peace of mind knowing your financial information is backed-up and secure. Automatically generate client ledgers for three-way trust reconciliation with MyCase lawyer accounting software. LeanLaw has developed an automated and transparent tool to manage tracking, reporting and paying compensation to respective attorneys in the law firm.

For example, in Xero, you can easily edit the layouts of your financial reports to prioritize what’s most relevant for your firm. CosmoLex is cloud-based, which means you run the software from a web browser. 4.4 out of 5 stars based on user reviews collected by G2Crowd as of Spring 2022. As long as you have an internet connection, you can access QuickBooks anytime, anywhere on your device of choice. It rеducеs thе risk of еrrors causеd by manual data еntry, еnhancеs collaboration among tеam mеmbеrs,  and optimizеs ovеrall productivity. Additionally, intеgratеd systеms еnsurе that rеlеvant data is rеadily availablе in onе cеntral location, facilitating bеttеr dеcision-making and financial analysis.

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An industry-specific software option will help you manage your firm more effectively and efficiently. This, in turn, will make you more profitable and free your time to do the work you love to do, rather than spend hours overseeing and managing your firm’s administrative functions. In addition to billing, Clio also handles client intake, scheduling, document management, client relationship management and many other functions your growing law firm needs. Multiple pricing options give you the ability to scale as your firm grows, meaning you won’t pay for features until you actually need them. That said, FreshBooks is an all-weather solution and should do the job for you, no matter your law firm’s size. There’s ample scalability and add-ons, and it’s jam-packed with features, from recurring billing to automatic payment reminders and class-leading encryption and security.

We see a lot of manual work where folks are having to accommodate the lack of connection between applications – usually with how time tracking and billing ties into accounting. New cloud-based accounting software today should provide for total automation once the raw data is entered. When choosing law firm accounting software, it can be challenging to know which specific features you need to keep your business running smoothly. Modernizing your accounting processes is an important step to meeting today’s client expectations and future-proofing your business as things change. While there is a lot of accounting software for attorneys on the market, there are only a few that are purpose-built with lawyers’ specific needs in mind.

Don’t be alarmed — general ledger packages abound on the market, and they carry names you already know. QuickBooks, Xero and Sage products are all general ledger packages you can use for your law firm’s accounting software needs. There are numerous articles available online detailing exactly how to use each of these products for your law firm’s accounting, including tips for managing IOLTA.

However, these services may not be properly designed to meet specific law firm credit card processing rules. With this plan, Wave will handle payroll, direct deposits, and other check printing needs. When it comes to your law firm’s basic accounting needs, there are numerous legal accounting software for law firms in the market. From cost-effective alternatives to extensive accounting platforms, you are sure to find the tools you need to address your general accounting needs. The best accounting software for your law firm has many features you need to manage your firm’s finances.