Best Law Firm Accounting Software & Bookkeeping Service Reviews

bookkeeping software for small law firm

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. Trialing a free application is a low-risk way for solo attorneys and small firms to get acquainted with different accounting software for lawyers. Of course, the applications explicitly built with lawyers in mind—those which offer integrations with practice management software—will likely yield the best return on investment for your firm. Below are three options for accounting software for lawyers—all of them offer free trials.

To get accurate pricing for your firm, you will need to complete PCLaw’s web form and schedule a demo and consultation. Our partners cannot pay us to guarantee favorable reviews of their products or services. Or do you use a different solution to manage your firm’s accounting?

Save time on payroll

However, there is no harm in using these products for trust accounting, as long as your accounting team is familiar with the trust accounting rules outlined by your local Law Society. It is sad but true that some of the most troubling errors law firms face are simple data entry mistakes. Unfortunately, their consequences are not always so simple and can affect significant portions of law firm business. Accounting and financial management mistakes can threaten the well-being of any law firm. Fortunately, you can easily avoid many of them if you know which types of errors are the most common.

However, QuickBooks is not a legal industry-specific solution, so larger firms with a large caseload could find it lacking in some areas. For example, you will have to use tags to keep payments or records for each client straight. With legal accounting software, records and transactions can be automatically applied to specific client accounts, making it easier to find the information you need quickly. In addition, the way that the software handles matter management, time tracking, trust accounting, and billing needs to work with your law firm’s current processes and workflows.

Customers love Wave

QuickBooks Online, for instance, works with Clio’s practice management software to sync contacts, invoices, financial information, trust transactions and disbursements. When you use these tools together through their Clio integration, this eliminates repeat data entry—saving you time and effort. However, with online legal accounting software, it’s easy to quickly produce reports that give you the insights you need—whether you need reports on sales, expenses, taxes, or other metrics. Some even have report customization options to get a clear view of what you care about most. As the 2021 Legal Trends Report found, the majority (66%) of consumers expect to pay for legal services online.

  • Below are three options for accounting software for lawyers—all of them offer free trials.
  • You can also strengthen and protect your firm’s finances from preventable problems.
  • Features like automated accounts receivable management and invoicing take the stress out of billing.
  • After selecting a candidate, provide adequate training to ensure they are prepared to handle the job.
  • You can automatically share intake forms and get documents signed online.

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. 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. And when you select an application that was built specifically for lawyers, you avoid the overwhelm of daunting spreadsheets and features that aren’t designed for legal professionals. If it can make your billing more efficient while providing clients with a better experience, it’s well worth the investment.

Key legal accounting software features

You can also set up payment reminders, recurring invoices, and auto credit card charges. 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. For a general bank account, you’ll need to use an accounting software with a general ledger that performs bank reconciliations. Any accounting software with a general ledger should offer this feature.

If all the other components of your law firm’s billing and financial reporting don’t fall into place, it can cause difficulties in ensuring that the right lawyer gets compensated fairly for their work. FreshBooks allows your law firm to practice and process accounting procedures from anywhere in the world. Most modern online accounting platforms offer intuitive dashboards, so you can monitor your firm’s business at a glance. These dashboards show important financial data like bank balances, reconciliation information, outstanding invoices, budgets, and more.

Some accounting software can also be used to prepare taxes for your firm so you can review, approve, and even pay your taxes all in one place. 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. So no matter where you are, you can always keep tabs on your business. Real estate accounting shouldn’t require hours of staring at a spreadsheet.

bookkeeping software for small law firm

We’ll be reviewing these in the near future, so look out for more information on those coming soon. It is necessary for the firm to gain an in-depth understanding of where their money is used for the firm’s activities or the payments on behalf of their clients. With no right legal accounting software, law firms might face a number of problems such as missing receipts and inaccurate records in the ledger.

Since our software has been developed for a deep integration with QuickBooks Online, you can count on total automation, efficiency and transparency for your law practice accounting needs. On premise solutions are a thing of the past Attorneys today need a mobile app in addition to a web-based solution. If you make the decision to buy software that needs to be used on-premise, your people will law firm bookkeeping not be able to work remotely with this kind of software. Keep track of miles traveled visiting clients or heading to the courthouse, making it easier to tally for taxes or billing purposes or add to your expense reports. Link your bank accounts for up-to-date transaction information with little or no manual data entry. This reduces confusion and minimizes any changes needed for accuracy.

  • A strong accounting practice will also allow you to plan strategically for the future.
  • Accountants play an integral role in every business—law firms are no different.
  • Finally, sign up for a trial account with one or two likely software options, put them through their paces, and select the one that will work best for your firm.
  • I started doing the bookkeeping for a group of small businesses that are all owned or part owned by the same person in 2001.
  • Bill4Time’s starting price is focused on solo law practitioners with more options for those running a law firm with multiple partners.
  • 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.
  • As a litigator and manager of a busy divorce practice, I cannot imagine practicing law without such a brilliantly executed piece of software.

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