Law Firm Accounting Guide: Securing Your Law Firms Future

bookkeeping software for small law firm

Using legal billing software helps to eliminate some or all potential human errors by automating several processes that are normally done manually. Automated billing and other processes also help improve project and client management. Your billing process is also more streamlined and bills are processed and sent out in a timely manner.

For example, in Xero, you can easily edit the layouts of your financial reports to prioritize what’s most relevant for your firm. CosmoLex is cloud-based, which means you run the software from a web browser. ProLaw is desktop/server-based, so it can be run on-premise or within a Private Cloud. ProLaw also offers ProLaw Workspace, an optional web interface to the ProLaw system. Finding the right staff member requires asking the right interview questions.

Rocket Matter Incorporates Kanban Project Management into LPMS

The right legal accounting software helps you better manage and improve your law firm’s cash flow by providing a clear, real-time picture of the firm’s financial data. 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.

Whatever software you choose should be user-friendly enough to meet the needs of those using it the most at your firm. If your firm’s users tend to need more technical support when learning a new tool, look for options that are easy to navigate and offer personalized customer support. Accounting software with a robust client relationship management system (CRM) saves time and streamlines your firm’s The Importance of Accurate Bookkeeping for Law Firms: A Comprehensive Guide invoicing and billing workflows. For example, the Clio Manage and Xero integration lets you apply a tax to an expense category in Clio, and that same tax amount will be applied to the client invoice in Xero. After all, you didn’t study the law to work on cash flow statements and financial projections. It’s daunting to jump into the world of accounting when you didn’t go to business school.

LexisNexis and Uptime Legal – a Match Made in the Cloud

CosmoLex also has specific features to protect client funds, like preventing the commingling of funds and overdrafts. Like accounting solutions, legal accounting software gives businesses secure digital tools to manage and track client payments, expenses, revenue, and more. Additionally, many accounting solutions integrate with payment providers and include other features that help streamline financial processes. But unlike software used for retail or other types of businesses, accounting software for attorneys is designed from the ground up to address the financial challenges that are unique to legal professionals. Attorney accounting software has specific capabilities to handle things like maintaining client trust accounts, case management, time tracking, and ensuring IOLTA compliance – to name just a few.

  • Another perk of the software is that it seamlessly integrates with Quickbooks Online if you’re already using this software for your accounting and bookkeeping needs.
  • It is one step ahead of QuickBooks as it is capable of recording everything from general to records to advance accounting systems.
  • Using the right legal accounting software will provide your law firm with the approaches to track the time accurately spent on client tasks.
  • Trust accounting is an essential and efficient way of gaining the trust of your client.

From keeping up-to-date on earnings to tracking expenses, find out what’s making money for your law practice and where you can cut costs. Plus you can  make it easy for clients to pay online via bank transfers, credit cards, or Apple Pay—and help eliminate late payments by including automated reminders and recurring invoices. As a lawyer, utilizing technology specifically created for the legal industry will save you time and money, especially when it comes to accounting. While having a basic understanding of accounting is essential for every business owner, legal accounting software can do much of the heavy lifting. Legal accounting software is especially useful with legal trust accounting to ensure you stay compliant with industry regulations. Tabs3 is part of the Tabs3 / PracticeMaster suite of law firm software.

Free accounting software for lawyers

This is intended to make employee management online software programs such as time and attendance, payroll, payroll tax filing service, human resources, and accounting software easier to use. Their offerings include time and attendance software, HR software, full-service accounting, and online basic accounting software. Start accepting credit cards hassle-free by signing up for a CosmoLexPay account. Our flat-fee credit card processor integrates with your legal accounting software. 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.

Not only do these features help you get paid faster but can drastically improve the client experience as well. 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. Costs incurred from a legal matter must be handled by the money that a client pays via an invoice, full stop. If a law firm mingles client payments with revenue, then records will be off and they could face compliance issues. FreshBooks accounting software is built around ensuring you get paid every penny for your hard work. It’s simple to create and customizing an invoice, add your logo and personalize your “thank you” email.


Understanding these terms and how they relate will help law firms properly manage their finances. Additionally, maintaining accurate books helps ensure that all financial information is correct and up-to-date. By learning the principles and best practices of legal accounting and bookkeeping and mastering their languages, you can effectively separate personal and business expenses. You can also strengthen and protect your firm’s finances from preventable problems.

bookkeeping software for small law firm

At $10 per month for the first six months and $20 after, the price is just right for law firms on the move. With financial data, legal accountants present big-picture information and give comprehensive and specific reports of a firm’s financial health. These data are valuable for a law firm’s future sustainability and profitability. Both accounting and bookkeeping for law firm are essential for success, and they share some similarities. Generally speaking, law firm bookkeeping is only concerned with organizing recording financial transactions and data.

Dedicated legal billing software can alleviate a lot of headaches and allow you to capture more billable hours. Cloud-based solutions let you log hours and manage cases from anywhere, keeping up with the way you work. Accounting programs for lawyers make your legal services run more effectively and efficiently. There are many accounting programs available and most are designed to improve time management, billing, accounting, and case management. The honest truth is that, just like everyone else, no technology provider can predict the future. This is why it’s essential to partner with legal tech providers that are cloud-based and offer ongoing support.

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