The #1 Legal Practice & Case Management Software

You can also schedule invoices to automatically generate and go out to clients on specific dates or at set intervals. Generate financial statements like cash flow, profit and loss, or balance sheets. QuickBooks is the ideal software for lawyers to spend less time on busywork, and more on real work. The migration timeline varies based on the firm’s size and current case volume. For a small firm with moderate cases, it could take a few weeks to a couple of months. Larger firms with extensive historical data may require several months.

Essential Features to Look for in Estate Tracking Software

Now that we’ve covered the key benefits, it’s time to look at the best options. Not all accounting tools are designed for law firms, and choosing the wrong one can lead to compliance issues and extra admin work. Do you ever feel like managing your firm’s finances takes up more time than actual legal work? Tracking billable hours, handling trust accounts, and chasing down invoices can be overwhelming—especially if you’re relying on spreadsheets or generic accounting tools. Late payments, trust accounting mistakes, and disorganized records can lead to compliance issues and cash flow problems.

Best Accounting Software for Small Law Firms in 2022

While it’s not built specifically for legal professionals, it offers powerful financial management features and integrates with legal software like Clio and LeanLaw. Law firms don’t just need accounting software—they need tools built for the way legal finances work. Between managing trust accounts and staying compliant with industry regulations, standard bookkeeping software doesn’t always cut it. You can effectively analyze the financial health of your business, find ways to generate more profit, and move forward with your business plan.

Learn why QuickBooks and Excel are not the best solutions for your trust account.

FreshBooks offers a well-rounded, intuitive, and attractive double-entry accounting experience. It anticipates the needs of freelancers and small businesses well—better than competitors in this class. First, you need to make sure that your bank account can sync with Bookkeeping for Law Firms the software. Automated bank reconciliation is a must — not having it should be a non-starter. On premise solutions are a thing of the past Attorneys today need a mobile app in addition to a web-based solution.

• Tracking billable hours, handling trust accounts, and chasing down invoices can be overwhelming—especially if you’re relying on spreadsheets or generic accounting tools.
• However, they lack the core/traditional accounting software fundamentals (like a Chart of Accounts, P&L, Balance Sheet).
• The PCLaw software can handle everything by itself without the need for third-party integration.
• See invoices paid 70% faster with LeanLaw’s streamlined accounting workflows.
• Yes, Clio Accounting is designed with practices of one to four attorneys in mind.

Solutions like MyCase offer automatic three-way trust and bank reconciliations. These features simplify the trust accounting process and provide greater peace of mind that you comply with state bar requirements. Time tracking features help ensure that billable hours are logged correctly against the client’s retainer for simplified invoicing.

Can modern legal accounting tools handle UTBMS codes and LEDES invoicing?

You must first apply money from the paid invoice toward incurred costs. For example, if your firm paid court filing fees for the client, a part of their paid invoice must cover that cost. After covering client expenses, the leftover amount is considered income.

Add your accountant to your legal team

Without the right system, even simple bookkeeping tasks can turn into unnecessary headaches. FreshBooks is a renowned cloud-based accounting software that simplifies financial management for freelancers and small businesses. Originating in 2003, FreshBooks has established itself as a top choice, serving over 24 million users worldwide.

For law firm accounting and financial management, this process helps firms anticipate lean months, plan for tax liabilities, and avoid overspending. PCLaw is a longstanding desktop-based solution offering integrated matter management, billing, trust accounting, and financial reporting. It delivers a unified toolkit designed for firms that prefer locally hosted systems and comprehensive matter workflows with firm accounting in one place. Zoho Books is best for detail-oriented law firms that want to build custom accounting workflows and connect their financial data with other parts of their practice. A solo practitioner managing basic invoicing and trust accounting will not need the same tools as a growing litigation firm with multiple billers.