Best Law Firm Accounting Software & Bookkeeping Service Reviews

Countless law firms have used the features QuickBooks offers to handle their financial and legal concerns. Although it can benefit law firms of any size, QuickBooks tends to work well with smaller and midsize firms. Zola Suite is an option with some of the most powerful and plentiful tools for law firm accounting and bookkeeping.

CosmoLex offers all-inclusive pricing for all its innovative features, including client relationship management tools, accounts receivable, and project management features. Because information is stored on the cloud instead of on a laptop, local server, or filing cabinet, it’s safe from theft or natural disasters. And because legal business can be performed from the courtroom, the car, or the couch, it’s easier to get things done when it works for you. Law firms need to ensure that their financial and accounting practices are up to par in order to grow their businesses. Having a separate bank account for business and personal activities is crucial, as it allows the firm to keep track of income, expenses, and any other important transactions related to legal practice.

You Always Know Where Your Money Is

For example, CosmoLex’s credit card processor, CosmoLexPay, automatically pulls fees for online payments from a designated legal account instead of from the client account. Three-quarters of consumers prefer to pay with a credit or debit card, so expanding your firm’s accepted payment methods can improve the client experience and boost loyalty. CosmoLex is a cloud-based accounting software for law firms, which means it’s easy to access our features remotely. In this day and age, it’s imperative to choose software designed to be accessed from anywhere, so you can get work done at all times without sacrificing efficiency. There’s a reason CosmoLex is considered the best law firm accounting software—we simplify administrative tasks, so you can focus on the work you do best. Bookkeeping is a vital task for law firms, as it helps them to record and monitor financial transactions and keep accounts in balance.

For that, Paro makes our list as the best accounting firm for hiring freelancers. Once your account is set up, you have secure access to your assigned accountant via messaging, phone, email, or chat. Payroll services also are available from 1-800Accountant for getting your employees paid, withholding taxes, and taking care of your payroll taxes.

What’s the difference between accounting and bookkeeping?

Plus, LeanLaw’s network of Accounting Pros is always there to advise when you need help. FreshBooks Select is a custom plan built to save time and money, and ensure your growing legal business has the accounting solution it needs. QuickBooks Online is an industry leader when it comes to the best accounting software for attorneys. It’s relatively easy to use, offers plenty of features, and automates many accounting tasks. You can try MyCase today risk-free with a 10-day free trial, which includes access to MyCase Accounting.

This feature allows users to quickly and easily sync their contacts, invoices, financial information, and transactions so that data entry is reduced or eliminated. With QuickBooks for Lawyers, you can also manage amounts in both operating and trust accounts as well as payments and credit notes applied to bills in Clio. Law firms also benefit from being able to keep client and financial data perfectly in sync. Users can also trial Xero for free before committing to use it full-time. Once you develop a bookkeeping system, business owners will want to consider working with a CPA or professional tax accountant around tax time to handle tax returns. While there are some outsourced services that offer this functionality, so far I’ve found that working with individuals and small accounting firms is better for this task.

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Additionally, users can generate reports by category or bill type to analyze their finances. For further assistance with the setup process of QuickBooks Online for lawyers in your office setting, the author is happy to come onsite if necessary. Moreover, the accountant should be able to capture expenses accurately while also understanding client trust. Additionally, an accountant who can use data to make informed decisions about the firm’s financial health is highly desirable. When choosing an accountant for a law firm, it is important to consider several qualities. The accountant should have experience with financial forecasting and strategy, preparing financial statements, and tax planning and compliance.

A comprehensive legal accounting solution can help significantly boost your operational efficiency by streamlining bookkeeping, taxes, payroll, and more – without sacrificing accuracy. By eliminating the lion’s share of manual tasks from the firm’s day-to-day, attorneys will be free to focus more on clients or pursue more strategic goals. See invoices paid 70% faster with LeanLaw’s streamlined accounting workflows. As a fully customizable legal accounting software platform, QuickBooks lets you manage retainers based on your state’s specific IOTLA programs rules.

Spreadsheet software and software that helps manage financial records are some of the tools available to help with accounting. Here we’ll explain the best legal accounting software for law firms and discuss top features, pricing plans, and pros and cons. Some of the billing software on this list would be better suited for solo practitioners and microbusinesses, and others will be a better pick for fast-growing companies. Testing different tools can help decide which one fits best to a law firm’s specific needs.

• Double entry accounting is a helpful practice for lawyers to know about, as it provides an extra guard against errors.
• Spreadsheet software and software that helps manage financial records are some of the tools available to help with accounting.
• TrustBooks has simplified the intricacies of trust accounting such that I can focus more on my client’s needs and less on law firm administration.
• For example, in order to ensure that client funds are not comingled with operating funds, attorneys must maintain a separate bank account for these funds.
• Bookkeeping is an ongoing task that is performed daily, weekly, or monthly (if you’re adventurous).
• Stay up to date with your cash flow from anywhere with an up-to-date view of bills to be paid and when.

This is more expensive than most basic software programs but cheaper than some premium plans for other options. With the accrual method, on the other hand, you enter an expense or revenue the moment it is incurred or earned. For example, when you invoice a client for services, the money they owe you is entered into the books as revenue.

We reviewed many legal accounting software options loved by law firms, and came up with a list of the 10 best apps you should know. Although it’s a virtual service, Bench personalizes its clients’ experiences by assigning them a dedicated team of in-house professionals. The team takes over all bookkeeping functions, law firm bookkeeping including setting up your account and linking it with all your financial accounts to upload data. The team then categorizes all your transactions, reconciles your bank accounts, and prepares monthly financial statements. For just $129 a month, clients receive a dedicated accountant and a detailed monthly reports.

• Link your bank accounts for up-to-date transaction information with little or no manual data entry.
• With limited reporting and accounting features, TimeSolv is a good fit for smaller firms with less complex needs.
• Law firms are held to a high standard and suffer greatly when errors occur, even when the errors are unintentional and understandable.
• This can help you defer tax liability until you are in an optimal position to address it.
• Wave uses both physical and digital protection, like read-only and 256-bit encryption to connect to your bank, and PCI Level-1 certification for credit card transactions.