Ethics-Compliant Bookkeeping for Law Firms

Another perk of the Zoho Books software is that it supports more payment gateway options than other accounting tools. There are four subscription levels which means that you can start small and upgrade to a higher plan as your business grows. In addition, Clio integrates with a good deal of third-party apps, including QuickBooks Online and Xero. It has a neat Accounting Export feature that lets you export time entries to other accounting software. MyCase Accounting is fully integrated into MyCase and offers robust three-way trust reconciliation that helps keep firms in compliance with state bar regulations. Accounting and financial management mistakes can threaten the well-being of any law firm.

• Learn more about what billable hours are, how to track them, and what kinds of time you can and can’t charge.
• Time Matters is a customizable legal software solution for practice management.
• Add to that the rapidly-changing landscape of digital payments and it’s no surprise that a growing number of law firms are looking for updated ways to accept and track payments.
• When it comes to financial records at your practice, accuracy should come above all else.
• Clio aims to be the Operating System for your law firm, and can integrate with many other cloud-based apps your firm may use.

We’ll let you know which cases or clients have outstanding balances, which cases are racking up expenses, and more. You can always access https://www.bookstime.com/ reports from your phone when you’re on-the-go. Generate financial statements like cash flow, profit and loss, or balance sheets.

#6: PCLaw by LexisNexis

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. This, in turn, will make you more profitable and free your time to do the work you love to do, rather than spend hours overseeing and managing your firm’s administrative functions. It boasts a flexible time tracking feature, which allows you to either run a timer or manually enter your time on whatever device you choose. From there, you can create your invoices in as few as four clicks, meaning you will no longer have to “find time” to bill your clients.

Automated bank reconciliation is a must — not having it should be a non-starter. Even more importantly, all of these general ledger packages allow integrations with software specifically designed to help you manage your law firm. Here are our top recommendations for accounting software options, plus tips on how to decide.

Trust Accounting

Next in our roundup of the best software for lawyers, we’ll cover legal document management software. These represent our view of the top cloud storage platforms within the broader scope of law firm software. To see even more options, check out our list of all of all cloud storage solutions for law firms. Simple cloud storage solutions are an attractive easy-button for storing your law firm’s documents in the cloud. These solutions do, however, come with drawbacks that become more pronounced as law firms grow beyond just a few users. These are vast categories that can be broken down into more specific tasks, which is where they overlap.

You can even track time on the go with its mobile timekeeping app, PCLaw Go. Clio is a cloud-based legal account software solution geared towards small to large law firms. The software makes lawyers more productive with features like time and expense tracking, online payments, billing, accounting, integrations, and calendaring. Legal-centric online payment services, like the ones we explore below, will cater to the unique needs of law firms, including dealing with trust accounts and ABA billing codes.

Add your accountant to your legal team

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. This is why it often makes sense for small law firms to choose accounting software specifically designed for law businesses. QuickBooks Online offers a free trial of their accounting software for lawyers. Their application allows you to record client payments, tag expenses to specific cases, and can even track money held in retainers. The best part is QuickBooks Online easily integrates with Clio, further streamlining accounting for lawyers.

Redundant tasks are automated which simplifies the process and saves lawyers a lot of time and frustration. These integrations not only make the accounting end run smoother, but also the business as a whole. With these streamlined tasks being simpler and quicker to accomplish, it leaves lawyers more time to focus on the client.

Top 5 Legal Accounting Software for Modern Law Firms

Their suite of accounting solutions provides expense management along with mobile tracking for lawyers who spend time working on cases remotely. 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. Some accounting software includes some bookkeeping functionality, but not everything that you need, and some offer complete bookkeeping and accounting features. Before you purchase software, it’s important to make sure that it will do what you expect. We’ll get into recommendations for the best law firm accounting software choices later in this article.

• With a subscription to Xero, you can add unlimited users to manage your accounting.
• Wave’s optional paid features include online payment processing, payroll software, and access to personalized bookkeeping services and coaching through Wave Advisors.
• LeanLaw has integrated with Gravity Legal, which allows the firm to request IOLTA funds electronically and automatically deposited into the trust account.
• Using software with automations is one of the ways that you can help eliminate human error from being a cause of discrepancies.

As long as you can access the internet, you can safely access Soluno. Grow Law Firm is a professional law firm digital marketing agency with the sole mission of helping law firms take their operations to the next level. Call today for a free consultation and learn what Grow Law Firm can do for you. QuickBooks is the ideal software for lawyers to spend less time on busywork, and more on real work.

Billing and A/R Management

To open a business bank account, you will need the necessary legal paperwork, such as the Articles of Incorporation and Employer Identification Number (EIN). You may also need to provide proof of address and identification documents. Once the account is open, it is important to manage it carefully by regularly reconciling accounts, tracking expenses, and paying bills on time. Most bar associations require law firms to comply with regular three-way reconciliation. Reconciliation protects against financial issues and uncertainty for both clients and law firms.

PCLaw is a great all-in-one legal accounting software solution that can handle bookkeeping and accounting for law firms large or small. It even uses Legal Electronic Data Exchange (LEDES) codes to simplify billing. Many best-in-class law firm accounting software come with additional functions to handle case and client management.

Legal PracticeManagement

It comes with built-in trust accounting tools, so you don’t have to use any additional software. Legal accounting software ensures lawyers have robust insight into their firm’s financial health and are in compliance with bar regulations. “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.” We know how important this is; our CEO, Devon Thurtle Anderson, is an attorney licensed in three states, with over 10 years of experience in complex commercial litigation and business law. We understand the challenges, and solutions, of running a law firm, because we’ve lived it.

• Another feature that makes it one of the top choices for law firms is its ease of use and intuitive interface.
• Online payment services are more than just cloud software for law firms, they are a service that provides payment clearing, authorization and other financial tools to help manage your practice.
• Break free from hourly pricing and take the fear out of scoping and pricing client projects to start maximizing profitability.
• This data-driven approach helps us better understand the services, so we can recommend only those that are a good fit for your needs.
• CosmoLex is legal practice management software with end-to-end accounting.

At $10 per month for the first six months and $20 after, the price is just right for law firms on the move. It provides for recording cash law firm bookkeeping as revenue when your firm receives it. This method does not recognize various payment accounts, such as accounts receivable and payable.

Infor Financials & Supply Management

Legal Files is commonly used by corporate legal departments, law firms, university legal departments, insurance companies, and various levels of government. Xero features an easy-to-use software service because it is entirely web hosted. You can access your accounting information from any device and all browsers (Google, Firefox, Windows, etc.). Clio is one of the most simple accounting software programs for lawyers by handling all your basic administrative tasks while on the go. Before you purchase the first one that shows up in a google search, you should be aware of what you need it to do, and what the different software offerings out there can provide. First, you need to make sure that your bank account can sync with the software.