The Best Free Accounting Software for Lawyers

Jun 4, 2021 1

bookkeeping software for small law firm

The intuitive interface is simple to use and has no confusing financial jargon. It’s easy to add features as you need them, like bank account connections and real-time transaction updates, and you can make changes any time. Whether you specialize in a particular field of law or handle  different types of cases, you bring your experience, skill, and legal knowledge to every case. Wave is easy to use and fully customizable, so no need to add accounting expertise to your credentials to streamline your processes, save time, and keep more of your money. Sage Accounting is most suitable for smaller law firms and sole proprietors.

  • Law firms are held to a high standard and suffer greatly when errors occur, even when the errors are unintentional and understandable.
  • Powerful and 100% free accounting software that has everything you need to confidently manage your law practice.
  • Like other law firm accounting software on this list, ProLaw offers custom invoicing, accurate tracking, and document management.
  • If a law firm mingles client payments with revenue, then records will be off and they could face compliance issues.
  • When you add QuickBooks through instant integration, you can easily access a full suite of tools to help you manage your small or midsize law firm.
  • Keep in mind that PC Law does not have any integrations to assist with financial reporting or expense management either, which could leave your firm operating less efficiently then you want.

We provide different levels of support for customers who use different features and services from Wave. Any connections between you, your bank accounts, and Wave are protected by 256-bit SSL encryption. You work hard to make your practice a success, so be sure your hard-earned money is protected. 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.

Top 5 Legal Accounting Software for Modern Law Firms

It also makes it easier to track who’s paid you and who still owes you money so that you can follow up with reminders without that collections process eating away at your billable time. This is a modern cloud-based platform that offers integrations with hundreds of applications including Clio. Hubdoc is an encrypted document management portal where you can easily send and store all of your financial documents. With Hubdoc, we can do your accounting 100% remotely if that suits your business.Keep in mind that there are other legal accounting software options, like Cosmolux and Soluno.

bookkeeping software for small law firm

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. Legal accounting software helps law firms track time, bill clients, manage schedules and monitor business performance with financial reports.

Final thoughts on the best legal accounting software

Like other law firm accounting software on this list, ProLaw offers custom invoicing, accurate tracking, and document management. The program is more sophisticated than others here but their training modules and both online and email support provide you with the help you need to get set up. Improves Client Relationships
Sending out paper invoices and requiring physical checks can not only make your firm appear outdated, but it can put a damper on the client experience as well.

bookkeeping software for small law firm

As a solo practitioner or small law firm owner, you have more important things to do with your time than manage your books. Irvine Bookkeeping offers a full range of bookkeeping services and promises that in 2-3 weeks, we clean up a whole book for you to prepare for tax seasons. We believe knowing your company’s financial health is the key to maintaining control of your business. 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.

Choose cloud-based legal accounting software

It’s no secret that law firm accounting is more difficult and nuanced than the typical money management of other types of businesses. And, believe it or not, most lawyers didn’t go to school to learn about bookkeeping and accounting, they went to learn about the law. While AltFee offers alternative fee arrangement software to help you set out the pricing structure that your law firm will follow, you’ll need something to handle the accounting side of things. Oftentimes, traditional accounting software like Quickbooks by itself doesn’t cut it.

  • PCLaw’s certified partner program can help with this, or you can choose to have a member of your team become a PCLaw Power User.
  • Specifying your accounting methods and needs is another important step to mastery of legal accounting and financial management.
  • Legal accounting software is a type of program that is tailored to the legal industry, helping to keep track of time, billings, schedules, and more.
  • Zola Suite might be the best choice for you if you need a platform that includes CRM capabilities.
  • 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.

On the other hand, income refers to what is left over after the firm’s costs and expenses have been deducted from the revenue. Taxes, property expenses, legal dues, and payroll are typical expenses law firms must law firm bookkeeping deduct from revenue to get income. Mixing up the two can give you a false picture of your firm’s financial health. ZipBooks is considered by many to be the best accounting software for smaller law firms.