best law firm accounting software

Within CARET Legal, you can view all matters through different filters. Moreover, it offers advanced features like customizing matters by practice area and responsible attorney. These are the reasons why CARET Legal is our best pick for matter management. For tips on data security for law firms and how to vet potential providers of cloud-based services for security, read our law firm security guide.

best law firm accounting software

Trades and Home Services

best law firm accounting software

You can start a timer from within the mobile app to log hours spent on a particular project or sync data from tools like Asana and Trello. To find startup accounting software that will best serve your business at any stage, consider scalability as well as strong customer support. You will also want to choose software that uses the accrual basis accounting method for recording transactions.

What to look for in a legal accountant

  1. Its retail solution, for example, includes CRM, inventory management and marketing features to integrate with its accounting platform.
  2. For example, in Xero, you can easily edit the layouts of your financial reports to prioritize what’s most relevant for your firm.
  3. The free version is free forever and has plenty of invoicing and accounting functions.
  4. What differentiates Quill is its focus on the UK legal industry, including compliance with UK-specific regulations.

To choose the right option for you, think about the present and future versions of your business — your accounting software should be able to support both. Right now, check that it’s within your budget and is compatible with your point-of-sale and/or payroll software, as well as your accountant’s system. Based on how much you expect your small business to grow, keep an eye on scalability, too. FreshBooks Select is a custom plan built to save time and money, and ensure your growing legal business has the accounting solution it needs. Easily integrate your FreshBooks accounting system with other apps and partners to simplify things like time management, payroll, and scheduling software. Even better, with Wave’s Pro Plan, you can safely give your accountant access to your books by adding them as a limited user.

Comparison of the Best Law Firm Bookkeeping Software

In our evaluation, TimeSolv got a very high score in pricing because of its overall affordability and perfect marks in accounting for its integration with Xero. It took a hit in ease of use because of the need to integrate with Xero. As much as possible, we prefer law firm accounting software that offers accounting and practice management solutions in one platform, such as CosmoLex for a cloud-based solution or PCLaw for a desktop program. Here we’ll explain the best legal accounting software for law firms and discuss top features, pricing plans, and pros and cons. Some of the billing software on this list would be better suited for solo practitioners and microbusinesses, and others will be a better pick for fast-growing companies.

Rocket Matter – Best for automated time tracking and billing, catering to efficiency enthusiasts

best law firm accounting software

TimeNet Law also supports integrations with popular software like QuickBooks, enhancing its accounting capabilities. There are some practice management software programs out there like Clio, Cosmolex, Timesolv, PCLaw. They have software options that QuickBooks + LeanLaw don’t have, like document management, case management, and project management. It provides more flexibility and ease of use for employees and the time of day (or night) that they want to work.

They handle everything from tracking revenues, expenses, and profits (general/business accounting) to managing client funds held in trust (Trust/IOLTA accounting). These software are designed to ensure the smooth running of your law firm’s financial operations and compliance with legal standards. Actionstep is a cloud-based legal practice management software, providing an all-in-one solution for law firms.

We reviewed many legal accounting software options loved by law firms, and came up with a list of the 10 best apps you should know. Many of the household accounting software names, such as QuickBooks, Xero and Zoho Books, can be classified as integrated accounting software solutions. When it comes to accounting for law firms, there’s no one “right” method (though you may be required to take on the accrual method). Some software platforms allow you to use accrual-based books for monthly management of the firm while also creating cash-basis statements for preparing tax returns.

The software is user-friendly, offers plenty of useful feature modules, and is highly affordable. The free version is free forever and has plenty of invoicing and accounting functions. CosmoLex is a cloud-based law accounting software that’s part of the Tabs3 family.

As a desktop software, it didn’t disappoint in features because it has all the essentials we’re looking for. However, it took a hit when it came to linking bank accounts and emailing invoices to customers. Both of the features are manually performed, and PCLaw can’t automate this for you.

After careful comparison, I picked Rocket Matter due to its strong emphasis on automation. It truly stands out with its auto-billing and time-tracking capabilities, which are integral to improving operational efficiency. For law firms looking to streamline these aspects, Rocket Matter is a suitable choice. ActionStep offers critical features such as case and workflow management, time recording, and billing. It seamlessly integrates with popular tools such as Microsoft 365, Xero, and QuickBooks, making data synchronization across platforms efficient.

LeanLaw is one of the more popular names in the legal accounting industry. There are many things that make LeanLaw the best law firm billing software, including features like time tracking by matter, expense tracking, bulk invoices, and trust accounting. Smokeball Bill is a software product that provides tools for sending and collecting invoices and for simple accounting. Legal accounting software helps law firms track time, bill clients, manage schedules and monitor business performance with financial reports. Accounting software options that are specific to law offices will ensure confidential client information is stored properly and complies with data security laws.

This way, your firm can stay compliant with ethics rules—and you can ensure you aren’t leaving money on the table. I picked Quill because it provides an integrated solution for managing legal cases, which simplifies the operations of law firms. What differentiates Quill is its focus on the UK legal industry, including compliance with UK-specific regulations. Soluno boasts features such as comprehensive case management, detailed timekeeping, and versatile billing.

This is why we recommend integrating it with LeanLaw, which is ideal for law firms with up to 30 attorneys. QuickBooks Online, for instance, works with Clio’s practice management software to sync contacts, invoices, financial information, trust transactions and disbursements. When you use these tools together through their Clio integration, this eliminates repeat data entry—saving you time and effort. No matter how big or small your law firm is, accurate, timely payroll is essential—but it can be time-consuming to complete manually. CosmoLex includes client and matter management, time, billing, business accounting and trust/IOLTA accounting, thereby eliminating the need for QuickBooks or other accounting software.

Look into the pros and cons of both methods for your firm, then be consistent going forward to ensure your records are accurate and easy to track. Trust accounts are one of the most common areas where legal accounting expense recognition principle mistakes are made. Whether you mismanage the accounts, put funds in the wrong account, accidentally use funds, or fail to report correctly, trust accounting errors are a big deal in accounting for law firms.

Abrir chat
¿Necesitas ayuda?
Hola 👋
¿En qué podemos ayudarte?