5 Affordable Bookkeeping Software Solutions for Law Firms

Break free from hourly pricing and take the fear out of scoping and pricing client projects to start maximizing profitability. FreshBooks has multiple package options so you can pick the one that best suits your business needs and budget. Unfortunately, reports that give you what you need can be cumbersome to create manually.

• ZipBooks is considered by many to be the best accounting software for smaller law firms.
• With this in mind, it’s important to vet the security features of any potential solution.
• In regards to security, Clio’s cloud-based allows you to store sensitive information on your computer while being accessible to you anywhere.
• Zola Suite is an option with some of the most powerful and plentiful tools for law firm accounting and bookkeeping.

As a fully customizable legal accounting software platform, QuickBooks lets you manage retainers based on your state’s specific IOTLA programs rules. Easily track all money held in trust retainers and general retainers. See invoices paid 70% faster with LeanLaw’s streamlined accounting workflows.

Improve your law firm’s cash flow

Online payment solutions like Clio Payments also streamlines your collections and accounting workflows. 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 law firm bookkeeping accounting software for lawyers should be an obvious first step. Don’t be alarmed — general ledger packages abound on the market, and they carry names you already know. QuickBooks, Xero and Sage products are all general ledger packages you can use for your law firm’s accounting software needs.

• Debits and credits combine to form a balance sheet comprising assets, liabilities, and equity.
• 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.
• 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.
• The software offers advanced reporting, including origination reports for new-business incentives, allocation reports, matter budgets, and team and matter productivity.
• Kelly is an SMB Editor specializing in starting and marketing new ventures.

Legal Files is commonly used by corporate legal departments, law firms, university legal departments, insurance companies, and various levels of government. Clio is one of the most simple accounting software programs for lawyers by handling all your basic administrative tasks while on the go. First, you need to make sure that your bank account can sync with the software.

Best Law Firm Accounting Software for 2023

TrustBooks also has countless five-star reviews regarding ease of use and customer service. PCLaw is an all-in-one accounting software for law firm use, suitable for large companies with more advanced needs. Built by LexisNexis, it integrates seamlessly with other LexisNexis products. It comes with a good deal of features to help you manage matters, track time, pay vendors, accept online payments, and manage trust accounts. You can even track time on the go with its mobile timekeeping app, PCLaw Go. Like other law firm accounting software on this list, ProLaw offers custom invoicing, accurate tracking, and document management.

Next, we recommend that your firm makes an inventory of the specific capabilities and features that you require in your law firm accounting software. For this, you should confer with both your legal team and your accountant. All major legal accounting software do accounts payable date entry, but only modern software like Xero offer solutions that integrate into Hubdoc.

Law Firm Accounting Software Features

This powerful feature gives you advanced insight into your firm’s financial health. It gives you the ability to view your firm’s work in progress, billing history, invoice payments, aging receivables, and more. If you are a Xero user, you will also find a number of application integrations to help you manage your law firm’s accounting. In particular, most of these applications will help you manage your time tracking. IOLTA reconciliations will still need to be managed, and this is something your accountant or bookkeeper can help you do.

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. Because of its complexity, legal accounting can be challenging to get right, especially for smaller law firms and solo practitioners. Being aware of the challenges beforehand and having the knowledge behind how to avoid legal accounting issues helps set you up for success. The best legal accounting software also saves you time while reducing errors and unlocking easy, useful financial reporting capabilities.

With FreshBooks accounting software you’ll know at-a-glance how long tasks really take. Just start a timer and get down to business — when you’re done, you’ll have an accurate time log ready to pop onto an invoice. And when your team uses FreshBooks accounting software, everyone’s productivity is in one clear place. When you know exactly where your law firm’s money is, it’s easier to identify what parts of your firm are successful and where you’re struggling, to make more informed and strategic business decisions.

Using software with automations is one of the ways that you can help eliminate human error from being a cause of discrepancies. Plus, it keeps all the information you need in one place, including invoicing, individual client ledgers, bank statements, money movement, and reporting — you name it. 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. Thankfully, these days, endless files and folders are less common because of advancements in legal technology, including law firm accounting software. Complex bookkeeping and accounting can be handled digitally, freeing up time and saving money by having more efficient processes for handling finances. The connection between a smoother client-centered experience and accounting software for lawyers might not seem obvious at first.