Top 5 Legal Accounting Software for Modern Law Firms
Here, you will find the typical offerings of law firm accounting software, and be able to compare the features of each. Incorporating a new legal accounting solution does not necessarily mean you have to throw out what’s already working for you. Great legal accounting software should enhance your existing operations with minimal disruption. Beyond that, integrations give your firm more flexibility to make changes or embrace new technologies without having to tear things down and start from scratch. So when evaluating different options, make sure to find a legal accounting provider that supports integration with your existing software. Zola Suite is a cloud-based legal practice management and accounting application.
With law firm accounting software, clients can pay by credit card (online or by phone) for initial trust retainers, fee prepayments, ongoing invoice payments, and more. This accounting software is suitable for mid- to large sized law firms. Their suite of accounting solutions provides expense management along with mobile tracking for lawyers who spend time working on cases remotely. Using digital tools to manage accounts was once seen as a convenient, but ultimately unnecessary, part of law firm operations.
Invoicing & Accounting Features Designed for Your Law Firm
Other tools include billing and creating professional invoices, including bulk invoices if you’re handling multiple clients. With the matter management features, you’ll be able to manage items and events related to matters, including expense cards, trust transactions, and time cards. You can impress clients with professional estimates and invoices that show off your brand. FreshBooks accounting software offers online billing and payment options to get you paid faster. FreshBooks is a cloud-based accounting software that we voted as the best legal accounting software overall.
A common point of confusion are the different types of law firm accounting software. Sure, FreshBooks is built for small business owners, packed with legal accounting software options. But you can also invite your accountant to get access to do general accounting tasks, gather info, and help you grow your business. For example, with QuickBooks Online and Clio, manage your firm’s financial information, trust transactions and disbursements, and online payments in one integrated cloud-based solution. You save time and reduce the risk of error meeting client, firm, bar association, and law society obligations.
You can integrate it with a non-legal accounting software like Xero, which offers more modern solutions like
Hubdoc for receipt management. MyCase Accounting is a fully integrated, cloud-based, law firm accounting software that centralizes your firm’s Running Law Firm Bookkeeping: Consider the Industry Specifics in the Detailed Guide 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.
- Whatever software you choose should be user-friendly enough to meet the needs of those using it the most at your firm.
- QuickBooks has some of the most affordable pricing plans for their accounting software.
- Clio also has a trust accounting add-on, but it doesn’t actually do trust accounting or reconciliations.
- We believe everyone should be able to make financial decisions with confidence.
- In Canada, the Legal Profession Act states that a law firm has to hold client funds for more than two years and make every effort to contact the client about their funds.
- Many or all of the products featured here are from our partners who compensate us.
Reports like Accounts Receivables and Accounts Payable are used to project and manage cash flow in your firm. In order to make sure you have sound financial records and reliable accounting processes for your law firm, you need the right legal accounting software. If you haven’t explored the option of implementing accounting software for law firms, you could potentially be missing out on making your practice more efficient, competitive, and profitable in the long run. With Clio Manage (case management and billing), you can organize everything you need to know about matters, including notes, contact information, documents, tasks, time tracking and invoices.
What is Legal Accounting Software?
In Canada, the Legal Profession Act states that a law firm has to hold client funds for more than two years and make every effort to contact the client about their funds. If they are unable to get ahold of the client, then the law firm must forward the unclaimed funds to the province’s law society. For instance, in Ohio, funds must be held for at least five years, and after that time they must be donated to a legal assistance foundation that increases access to justice. And in case you’re a smaller law firm with humble needs and didn’t find anything you like on this list, take a look at our best small business accounting software post. Small and medium law firms have a lot to benefit from this software, as well as solo accountants working for multiple clients.
When you purchase a CosmoLex subscription, you access our free, in-house support. We’re available every step of the way to help law firms make the most of our supportive features. Import bank statements or electronic credit card statements for automated data entry. Built-in adaptive mapping rules can correct payee names and learn a chart of accounts.