Top 7 Law Firm Accounting Software For Lawyers

invoicing and bookkeeping software for law firm

And businesses of all shapes and sizes need to perform general bookkeeping functions and track their finances. Although it may seem like an unnecessary expense to some practitioners, this is not typically something your office can afford to go without. Many of the software options designed for law firms handle scheduling, time tracking and billing. These are all critical functions for the administration of your law firm.

Yes, most versions of QuickBooks Online let you create unique user IDs and customize access levels for anyone on your team so they can work in your legal accounting software with their own login. This means the product allows you to differentiate between client trust accounts and track them individually. It also means that the product helps you manage your three-way reconciliation. This means the ability to accept credit card or echeck payments within your accounting software, either through its own payment portal or via a third-party integration like PayPal or Square. Although you could get by with using just a general ledger package software for your law firm, you will most likely want another software designed specifically for legal practices. An industry-specific software option will help you manage your firm more effectively and efficiently.

How to Use ProLaw in the Cloud in 2023

Many law firms use QuickBooks for their core accounting, but acknowledge that QuickBooks does not follow the rigid Trust Accounting rules. (Some law firms try anyway, or worse yet, use an Excel spreadsheet to manage trust accounts). A common point of confusion are the different types of law firm accounting software. Client trust accounts can be pooled (more than one client’s money in an account) or separate https://www.digitalconnectmag.com/a-deep-dive-into-law-firm-bookkeeping/ (usually for larger sums of money or if requested by the client). Every jurisdiction also has different rules surrounding trust fund accounts as well, where you may require only one or multiple pooled accounts for different legal services. If you neglect any aspect of your trust account(s), you may be putting your law firm at significant financial risk or even lose the ability to practice altogether.

  • 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.
  • You can use the app or forward invoices directly from your email to your secure cloud storage solution.
  • Accounting is a world of numbers, and, for law practices, it helps efficiently manage the money flowing in and out of business.
  • Trust accounting must be done correctly in order for law firms to stay compliant.
  • 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.
  • This partnership allows PCLaw to provide a complete law firm accounting and management solution, without the need for third-party software integrations.

From corporate to criminal and family law, you need to keep up on the latest precedents and legal developments to ensure the best results for your clients. Wave accounting software is the solution you need to take charge of your business money matters and free up your time for legal work. Here, you will find the typical offerings of law firm accounting software, and be able to compare the features of each. Some programs offer only accounting features, while others will allow you to accept credit card payments online, manage your payroll, and more. Those who are looking for an all-in-one solution — including a general ledger package — for their law firm need look no further than PCLaw by LexisNexus.

What is the best legal accounting software? Here’s our top 10 list:

Make sure that any solution you consider has multiple layers of security and encryption to keep transaction history and other account information safe. Zola Suite is a cloud-based legal practice management and accounting application. While it has many of the standard fare for legal case management, it also boasts a built-in email client for better managing the relationship between matters and communication, and a slick, minimalist design. At the same time, every business needs accounting, and law firms are no different. So whether you own your own law firm or work at one, knowing the basics of accounting is paramount to ensure you follow all ethics and regulatory requirements surrounding money handling and management. It’s no secret that law firm accounting is more difficult and nuanced than the typical money management of other types of businesses.

You can integrate it with a non-legal accounting software like Xero, which offers more modern solutions like
Hubdoc for receipt management. Legal billing is complex compared with billing in other small businesses. Legal billing structures are Navigating Law Firm Bookkeeping: Exploring Industry-Specific Insights unique, and lawyers are subject to strict ethics and accounting regulations. Dedicated legal billing software can help your firm manage time tracking and invoicing more efficiently than general bookkeeping and invoicing software might allow.

How to avoid malpractice with accurate trust account management

Clio Manage — Clio’s most popular solution — runs between $39 and $99 per user per month when paid annually, with most law firms choosing the $59 per user per month option. Other options include Clio Grow, which is priced at $49 per user per month when paid annually, and Clio Suite, which starts at $89 per user per month. CosmoLex includes client and matter management, time, billing, business accounting and trust/IOLTA accounting, thereby eliminating the need for QuickBooks or other accounting software. With CosmoLex, the financials of every client/matter is front-and-center, and intrinsically linked to each case. ProLaw comes in a number of packages and editions, some of which include ProLaw’s fully-featured accounting software.

invoicing and bookkeeping software for law firm

In regards to security, Clio’s cloud-based allows you to store sensitive information on your computer while being accessible to you anywhere. Amicus Attorney and AbacusLaw are downloadable software you can use on local servers or through a private cloud for easy access and sharing that’s still secure. We provide different levels of support for customers who use different features and services from Wave. Any connections between you, your bank accounts, and Wave are protected by 256-bit SSL encryption. 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.

You work hard for your clients—make your finances work hard for you

Powerful and 100% free accounting software that has everything you need to confidently manage your law practice. 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. Then, you’re ready to evaluate the top accounting platforms for law firms.

invoicing and bookkeeping software for law firm