Buyers Guide: Best Legal Accounting Software 2023 Legal Billing Made Easy

Above all, its fundamental strength comes from its tight integration with Clio Manage. While it doesn’t break new ground with its feature-set, being part of Bookkeeping for Law Firms the wholistic Clio product family makes it groundbreaking. Generate financial statements like cash flow, profit and loss, or balance sheets.

• Sync your legal accounting software to apps that organize clients, billing, and documents in one place.
• Proper handling of trust accounts, including IOLTA accounts, is essential for compliance with legal and ethical standards.
• Software with built-in trust safeguards helps you meet bar requirements, avoid accidental violations, and pass audits with confidence.
• Trust accounting requires law firms to meticulously track transactions coming in and out of trust accounts.
• MyCase legal accounting software offers a suite of analytics, workflows, and tools that simplify accounting and financial administration.

Free accounting software for lawyers

Key responsibilities include reconciling bank and trust accounts, reviewing outstanding invoices, tracking expenses, and setting aside money for taxes. It’s also important to generate financial reports—such as income statements and accounts receivable aging summaries—to monitor cash flow and spot potential issues early. Using legal-specific accounting tools can help streamline these tasks and reduce the risk of missing something critical.

What Is Lockup in Law Firms? The Cash…

This contributes to why the general accounting principles (GAAP) does not find cash accounting acceptable. It can also be complicated to switch from cash accounting to accrual accounting. For example, businesses filing taxes for 2024 can only use the cash method if receipts from the past three years do not exceed $30 million. Controllers take a holistic look at your firm’s financial operations.

Contact Management

Small and medium-sized law firms with revenue between $3 million and $20 million increasingly prefer this model. See invoices paid 70% faster with LeanLaw’s streamlined accounting workflows. You want to make sure it will work with the other applications you are using today. Really, your accounting tool should be the center and your other tools should work with it. We see a lot of manual work where folks are having to accommodate the lack of connection between applications – usually with how time tracking and billing ties into accounting.

• It simplifies accounting, time tracking, and client billing, allowing law firms to focus more on their practice and less on paperwork.
• Yes, if your bank participates in the Plaid network, which connects to offers over 12,000 financial institutions.
• Billing is directly related to the time your attorneys spend working.
• Trust account management prohibits law firms from commingling earned and unearned client funds.
• By hosting your payroll application in the cloud, you’re moving your data off a potentially vulnerable office computer and into a secure, professionally managed data center.

What Are The Biggest Benefits of Using Legal Accounting Software?

By embracing cloud-based solutions like LexWorkplace, law firms can navigate the digital transformation journey more effectively, ensuring sustained growth and enhanced client service. Prices vary depending on the type of software and features included. Basic accounting tools like Xero start at $29 per month, while comprehensive legal platforms like QuickBooks and LeanLaw range from $35 to $45 per user per month. Advanced solutions with CRM and case management features can cost significantly more. Yes, but it requires legal-specific integrations to handle trust accounting properly. Many firms pair QuickBooks Online with tools like LeanLaw or Clio to ensure compliance with legal financial regulations.

Best Accounting Software For Small Law Firms (A 2026 Guide)

For details about our money transmission licenses, or for Texas customers with complaints about our service, please click here. A retainer agreement helps establish terms for your services and payment. Learn how to set up your own retainer agreements and improve stability for your practice.