11 Jun 6 Benefits of Legal Accounting Software in Law Firms

It’s daunting to jump into the world of accounting when you didn’t go to business school. In fact, according to the 2021 Legal Trends Report, only 7% of lawyers felt that law school prepared them to run a business. Like Clio, PCLaw is a complete practice management solution as well.

Clients will have the option to pay online which will be tracked and recorded on the dashboard. From a billing perspective, Bill4Time makes client billing seamless. We’ll let you know which cases or clients have outstanding balances, which cases are racking up expenses, and more.

#2: Xero

Leveraging the right accounting software can give law firms exciting opportunities to streamline their accounting processes, decrease compliance risk, and improve client experiences. But finding the best law firm accounting software can be a challenge, especially with so many seemingly similar options out there. Here are the most important things you law firm bookkeeping need to keep in mind when choosing legal accounting software for your practice. This is why it’s important to keep accurate records and separate cases or matters based on the attorney. If you’re looking for software that can competently handle both bookkeeping and accounting, you’ll need to pay close attention to the features that it includes.

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 also want to make sure the law firm accounting software you choose is one that integrates with the general ledger package your accountant or bookkeeper uses. This will save hours of data entry time as well as eliminate the possibility of errors. PC Law is a relatively inexpensive option that can be a good choice if trust accounting is important in your business.

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It’s relatively easy to use, offers plenty of features, and automates many accounting tasks. Other features include balance sheets, accounts receivable and payable, and general ledger tools. You can also set up payment reminders, recurring invoices, and auto credit card charges. Then, you’re ready to evaluate the top accounting platforms for law firms. Get a free demo and see why the most successful small law firms use Smokeball to manage and grow their business. When you need to manage client and matter-specific level data that is required by your firm’s workflows, it’s best to use a system that has a client portal — such as Clio and PC Law.

• In fact, many law firm and accounting management software solutions even do automatic three-way reconciliation to target discrepancies early so they can be fixed as soon as possible.
• Capturing every minute of billable work is critical for accurate law firm billing and, ultimately, profitability.
• A Private Cloud will host your desktop-based legal software, documents and data in the cloud.
• Clio is practice management software for case management, billing, accounting and client intake to support your firm’s practice at every stage of the client journey.
• You want to make sure it will work with the other applications you are using today.
• The most advanced accounting solution is worth next to nothing if it’s not convenient to use.

Some of the links that appear on the website are from software companies from which CRM.org receives compensation. If your firm has already moved to the cloud and gotten rid of on-premise servers, you might find getting quality, legal-focused IT support difficult. You can use the app or forward invoices directly from your email to your secure cloud storage solution. Law firms must know that there is essentially no wiggle room for errors.

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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. It has to come with superior accounting features, handle client trust accounts, and maintain detailed records to properly bill clients. Zola Suite is a cloud-based legal practice management and accounting application. ProLaw comes in a number of packages and editions, some of which include ProLaw’s fully-featured accounting software.

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. In addition to sophisticated law practice management and document assembly/form assembly features, LEAP provides time tracking, billing, trust accounting and financial reporting capabilities. ProLaw is robust practice management, document management and accounting software for law firms. It’s the only legal software platform that includes all three of these main pillars to running a law practice. Moreover, law firms can gain a more detailed understanding of financial health and determine which areas are needed to improve.

Reason #5: Effectiveness in tracking expenses

They have software options that QuickBooks + LeanLaw don’t have, like document management, case management, and project management. You’ll likely need software alongside your legal account solution to manage your law firm’s pricing. As a complete pricing tool that focuses on collaboration, AltFee makes it easy to create, manage, and analyze your law firm’s fee structures.

Using the right legal accounting software will provide your law firm with the approaches to track the time accurately spent on client tasks. By employing the information, the firm leaders can determine the ineffectiveness and time-wasting activities in order to improve the firm performance. In addition, the firm can avoid law firm bookkeeping and accounting problems related to overbilling or underbilling for their clients. Relying on memory is never a good way to keep track of your billable hours. Leading legal accounting software include convenient time tracking features to keep track of your firm’s workload and progress. It also ensures that billable hours are logged correctly against the client’s retainer for simplified invoicing.

Let’s take a closer look at why you should seek out an accounting software system specifically for the legal profession. While many law firms prefer using a legal-specific software, it isn’t necessary for every firm. Some law firms we work with at ProFix like legal accounting software because of the added features, such as client contact portals and matter management.

• “Replace your law firm accounting software with Soluno (especially if it is PCLaw)… the transition was smoother than I expected and the Soluno team was there every step of the way.”
• Free accounting software for lawyers allows you to save time and scale your firm by providing you with all of your firm’s billing activity.
• Unfortunately, reports that give you what you need can be cumbersome to create manually.
• On top of that, ZipBooks is more than reasonably affordable; it’s highly affordable compared to many options.
• While general accounting software may work, choosing accounting software that’s designed for law firms will be vastly more useful.