The Best Legal Accounting Software 2023 Review

accounting software for attorneys

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. Legal accounting software with billing features (such as the ability to create or track invoices) or that connects with your practice management software helps simplify your workflows. Take Xero and Clio Manage, the integration lets your firm automatically connect your client invoices and expenses from your practice management software to your accounting software—streamlining the process. Trust accounting must be done correctly in order for law firms to stay compliant.

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accounting software for attorneys

Accounting is an essential function of any business, and law firms are no exception. Thankfully that job is made much easier than it used to be because much of the information you need to record is captured digitally. Most bookkeeping and accounting software will allow you to import a lot of this digital data into your chosen program, meaning much less work is needed to stay on top of both your books and your accounts.

Keep track of bills

Accounting for law firms becomes so much easier when you work with an accounting professional from the beginning. Poor accounting practices, such as struggling to track billable hours or sending out invoices late, can lead to money leakage. Entering numbers manually often leads to mistakes and duplicated data entry in the accounting process. This results in wasted time, mismatched records, billing complications, and even compliance violations. So, with double-entry accounting, every financial transaction gets sorted into a specific category (assets, liabilities, or equity).

accounting software for attorneys

Wave’s accounting software is designed for lawyers, and can be easily customized for any type of law you practice or legal services you provide. Wave is cloud-based, and gives you the ability to add mobile apps so you can securely access your accounting software and financial information anywhere, anytime. Whether you’re on a break at the courthouse or traveling to see clients, your financial info is at your fingertips. However, while PCLaw is a powerful solution, it’s complicated legal accounting software. As such, you might want to enlist the help of a professional bookkeeper or accountant who is familiar with the program.

Comprehensive case management software that meets the needs of your firm—and your clients

While the desktop route is a solid one Zoho Books also has an impressive app presence, making it a good mobile bet too. The free plan gets limited to a business with less than $50k in revenue, 2 users (as in yourself and your accountant) and maxes out at a pretty generous 1,000 invoices for the year5 automated workflows. After you process your pay run using law firm accounting software, your accounts will be updated automatically. Without accounting software for lawyers, it’s easy to see how the above unpaid invoice could have gotten lost or forgotten. And while there are always ways to enhance your law firm billing process, utilizing accounting software for lawyers should be an obvious first step.

  1. The Business edition is aimed at growing businesses and limited companies.
  2. Features like Clio Payments also help streamline payment and collections, ensuring you get paid faster and collect more of what you bill.
  3. Because the rules governing client funds and trust accounts are specific and complex, many legal professionals find it easier to use trust accounting software to help law firms ethically manage these complex accounts.

And a tool that provides free accounting software for lawyers is especially valuable. If you are looking for the best accounting software for law firms with fantastic reviews from the customers and are highly affordable, you are in the right place. Bookkeepers and accountants who work on law firms love this software because of its features. Using the best accounting software for law firms can save your time, reduce the chances of error, and enhance efficiency.

Time Matters

In addition to being necessary to comply with ethics rules around legal accounting, accurate financial records drive law firm growth, as you need accurate data to make smart business decisions for your law firm. Additionally, if your legal accounting software is cloud-based, this information will be accessible from anywhere, at any time. It is one of the best accounting software for law firms, but it still has one drawback. It lacks payroll processing, but you don’t need to worry about this because they partner with ADP for payroll processing.

Accounting software is an essential part of any law firm’s legal tech toolbox. While you’re building the technology stack for your law firm, don’t forget to ensure you have the best document management system. With an industry that bills by the hour and juggles intricate client trust accounts, streamlined financial operations are paramount. Ditch your outdated templates and create professional invoices that capture every detail of billable work. The other bonus with using software to manage your books and submit accounts for taxation purposes is that the package will invariably come complete with tools for making the job that much easier. In many cases you’ll simply need to add in your figures, collated from things like bank statements and receipts.

The tax implications of this method also allow your firm to pay tax on income once it’s received and in the bank. If you want your firm to stay compliant, be financially successful, and grow, you need to have an accurate and clear bookkeeping system for your law firm to follow. This could mean taking on bookkeeping tasks in-house or hiring a professional bookkeeper with experience working with law firms. An accountant who specializes in accounting for law firms is beneficial. Your best bet is likely to hire both a legal bookkeeper and a legal accountant. Beyond just staying organized and compliant, following best practices for accounting for law firms will help you identify growth opportunities.

A common point of confusion are the different types of law firm accounting software. It’s therefore a good bet if you work for yourself and have a workload that can be easily tracked without the need for too many features and functions. Furthermore, to combine it with payroll from Gusto increases the costs further for an additional $40/month making us think we may be better off with another solution that is one price with payroll already integrated. Because solo lawyers have limited time for chasing payments, choosing software with a powerful time and expense tracking feature is important.

Billing clients is easy due to this tool’s invoicing and payment options. You can also track expenses with ease using the built-in tracker to keep a record of all your finances. CosmoLex is the best trust accounting software for a reason—we take the guesswork out of navigating these complex accounts and enable legal professionals to feel confident in handling trust financial data.

And a lack of professionalism can lead to losing your clients, referrals, and growth opportunities. CosmoLex is cloud-based, which means you run the software from a web browser. ProLaw is desktop/server-based, so it can be run on-premise or within a Private Cloud. ProLaw also offers ProLaw Workspace, an optional web interface to the ProLaw system. Book some time for a consultation, and our support staff is happy to give advise you in the best direction to go.

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