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. Clio is an excellent option for law firms seeking quick and efficient communication tools—its built-in text messaging feature allows you to communicate quickly with your clients and team members. You can also integrate the software with some of your favorite business management tools, and you can process unlimited documents in any Clio plan. It also stands out for its unique features, such as SMS text messaging and a do-it-yourself (DIY) website builder, making it among the most affordable legal practice management solutions. For many legal professionals, tracking time, and reconciling accurate records of retainers against billable hours can be a challenge.

best accounting software for lawyers

As an accounting tool, Ramp uses machine learning to analyze merchant names, locations, and purchase types and categorize transactions into relevant expense categories (e.g., travel, office supplies). It lets you build automated workflows for transaction reviews and approvals. Its spend analysis functionally identifies areas to optimize spending and provides recommendations on which subscriptions to cancel, which vendors to negotiate with, etc. Additionally, it offers employee cards with predefined usage restrictions to simplify expense tracking and improve budget control for managers.

Frequently asked questions when selecting accounting software

This influences which products we write about and where and how the product appears on a page. Compare product reviews and features, and learn from our Finance Software Research. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world. Store every document securely in the cloud, linked to the correct matter. Find what you need in seconds with advanced search, and instantly send for e-signature. Although there’s no free plan, you can access all Xero features for free for 30 days.

Ensure your chosen accounting tool has essential security measures, such as robust encryption, access control, secure login protocols, and multi-factor authentication. These measures safeguard your data, allowing access to only authorized individuals and mitigating the risk of potential security breaches. Wave Accounting is worth considering for finance and accounting teams that want to prioritize data security. When users upload data into Wave, their information is encrypted using 256-bit TLS encryption while it’s moving over the internet. Additionally, accounting data stored on Wave servers is secured with strict physical access protocols with 24/7 monitoring.

This popular solution has been around since the mid-2000s and boasts over 2 million users. CosmoLex is a cloud-based law accounting software that’s part of the Tabs3 family. It comes with built-in trust accounting tools, so you don’t have to use any additional software. In this section, we’ll take a quick look at how the top 10 legal accounting software solutions compare against each other in terms of pricing. If a free tool can make your life as a lawyer or law firm office manager easier, you should jump at the opportunity to use it. And a tool that provides free accounting software for lawyers is especially valuable.

Built-in payment management features ensure that any unearned client payments are automatically put in a client trust and that the fees to maintain that account are handled correctly. Top solutions also offer helpful automation capabilities, such as the ability to perform a three-way trust reconciliation process at the press of a button. This gives you the best of both worlds while making your law firm’s comprehensive accounting situation easier to manage.

Quickbooks Accounting Screenshot

Given the frequent changes in accounting and tax regulations, keeping up with the latest requirements can be challenging. Failure to maintain compliance puts your small business at risk of penalties and other legal consequences. Therefore, opt for accounting software with features such as automatic tax updates, integrated compliance checklists, and audit-ready transaction bookkeeping basics records. For instance, if you’re a construction business, your shortlisted accounting software should include job costing to calculate the precise costs of hiring construction equipment, labor, and materials. Likewise, if you’re in retail, the software should offer inventory management and tracking capabilities to monitor and record retail sales and purchases.

Filevine shines with its highly customizable case management workflows, detailed reporting, and document automation. Additionally, it seamlessly integrates with tools such as Outlook, Google Calendar, and QuickBooks, enhancing its productivity potential. Its platform is designed to support remote work, which sets it apart in a world where flexible work models are becoming more common. This characteristic makes Soluno the best tool for firms embracing remote work.

Should law firms and legal practices consider using accounting software?

This site does not include all software companies or all available software companies offers. While this primarily applies to new law firms, ensuring that the basics are determined and set up correctly is critical. The firm could face compliance issues, and their books will be inaccurate (skewing the value of any accounting data derived from them).

Ensure your chosen accounting tool has essential security measures, such as robust encryption, access control, secure login protocols, and multi-factor authentication.
While we rated it as the best sole proprietor and small business accounting software for lawyers, it is also one of the best scalable options.
Our Site does not include all software companies or all available vendors.
While QuickBooks Online is extremely customizable, it has no legal-specific features that law firms need, such as trust accounting, legal billing, and legal-specific reports.
Consider whether your firm would be best suited for combined practice management / accounting software (or separate software for each), and consider the specific features your law firm needs.

Not only does it excel in the programming of the many features, but it results in the law firm being run more effectively and efficiently when you simplify the process, not to mention the time it saves. Enhancing business processes leads to more profitability because the staff has more time to focus on the clientele. Zoho Books is a recommended product for companies that are already using other Zoho products, like Zoho CRM and Zoho Projects. Another perk of the Zoho Books software is that it supports more payment gateway options than other accounting tools.

Taxes

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. The following review showcases the best accounting software for lawyers in 2021.

They are the only cloud-based end-to-end legal practice management that has completed a SOC 2 audit. SOC 2 was established by the American Institute of Certified Public Accountants to ensure that businesses don’t take on any unnecessary risks when hiring a service provider. It also has time & billing with advanced origination tracking & reporting and complete business accounting, trust accounting, and settlement management.

Some of its features include time & expense entry, batch billing, trust & IOLTA accounting, LEDES codes, conflict search, and document management & automation. It stores payment information, records all payments, and runs payments in batches. It also has flexible billing templates and multiple reports in different formats.