Best Law Firm Accounting Software for 2021

Software that is more than just general bookkeeping is required by law firms. Bookkeeping software for law firms must also manage client trust accounts (CTAs), which includes interest on lawyers’ trust account (IOLTAs). They need to keep detailed records and track the time and expenses they spend on cases to bill clients. Legal accounting software helps lawyers to manage their revenue, improve their billing processes, and gain valuable insight into how their finances are doing. We looked at many accounting software options in order to find the best.

  • Best all-in-one accounting software for law firms.
  • CosmoLex: This is the best option for law firms looking to have a cloud-based accounting system and practice management software.
  • LeanLaw – Best legal accounting software integrations for QuickBooks Online users
  • Best Integration for Law Firms that Use Xero Accounting Software
  • Zola Suite – Best for law firms looking for a cloud-based, all-in-one solution that is less expensive

How we evaluated law firm accounting software

Software for law firm accounting includes features that are not available in other bookkeeping programs such as trust/IOLTA accounting and financial reporting by matter. A legal-specific accounting software must be able to perform three-way reconciliations of client ledgers and trust accounts, as well as bank statements. Our top law firm accounting software was evaluated on price, ease-of-use, customer support and availability of key legal-specific features such as:

  • Matter Management: The best accounting software for law firms should be able to manage legal matters efficiently, including transactions and contracts, as well as billing and compliance.
  • Time tracking As a lawyer, it is important to have accurate software that tracks the time you spend with different clients and cases.
  • Trust accounting This software should allow you to track both the total client funds and the client owed funds. Software must also provide a list with trust transactions that have been separated by clients. You should also be able to easily perform a three-way reconciliation between client trust accounts, client ledgers and bank statements.
  • Billing system Time and expense tracking by client job and code. Billing rates should allow for variations by service code or employee. Employees should have the ability to track time and expense while they are away from work. The billing system should produce professional-looking invoices that are easily printed or emailed.
  • Practice Management: Some clients may also like to integrate practice management with their accounting and billing systems. Client portals, secure communication, document management, calendars that integrate time tracking and matter dashboards that link to all parties, documents and expenses are some of the most common features.

PCLaw: The Best All-In-One Law Firm Accounting Software

PCLaw by LexisNexis, a popular practice management software, allows law firms to track matters, track expenses, pay vendors and accept client payments in one place. This program is great for solo practitioners as well as law firms that need to track their billable hours and calculate profit an hour.

 

  • Remote time tracking using PCLaw Go
  • All-in-one legal management software
  • Integrates with other LexisNexis Products
  • For easy billing, use the Legal Electronic Data Exchange Standard (LEDES), codes

  • There is no payroll processing built in
  • It is difficult to use
  • It is difficult to share books with an outside accountant
  • There is no upfront price

Plans & Pricing

PCLaw does not publish pricing information on their website. However, you can get a custom quote from LexisNexis. Register for a demo to try before you buy.

 

Go to PCLaw

Our Expert Opinion

PCLaw has everything you need. LEDES codes can be used to simplify client billing. You can also create multiple accounts for client funds, firm funds, IOLTA accounts, client trusts, and firm funds. Create tasks and assign different lawyers. With its mobile timekeeping app PCLaw Go, you can track your time and keep track of it on the move. It’s part the LexisNexis legal practice management product family, so you have many options to connect it with your existing programs. Although it doesn’t include a payroll management tool, ADP integrates with it to handle payroll tasks. PCLaw is a powerful, but complex legal accounting program. You might consider hiring a professional accountant or bookkeeper who is familiar with the program.

CosmoLex: The Best All-In-One Cloud-Based Legal Accounting Software

CosmoLex, like PCLaw is an all-in one accounting and legal practice management system. However, it is cloud-based instead of being installed on your computer or network. PCLaw offers many features including task and document management, time tracking, trust accounting and billing. It is part the Tabs3 software family, which provides specialized software for law firms of all sizes.

 

  • Built-in accounting suite; doesn’t require QuickBooks
  • Unlimited training and unlimited customer support
  • LawPay accepts online payments
  • Login for an external accountant free of charge

  • It doesn’t integrate well with third-party software
  • There is no integrated payroll system
  • Only firms with more than 10 users can get tier pricing

Plans & Pricing

CosmoLex is $89 per month for monthly contracts, and $79 for an annual contract. All accounts come with unlimited training, unlimited data migration, unlimited file storage and a unconditional 90-day guarantee.

CosmoLex can be tried for free for 14-days before you purchase the software.

 

Go to CosmoLex

Our Expert Opinion

CosmoLex’s built-in, legal-specific accounting suite is what sets it apart. This suite is not available in many legal practice management software. You don’t need to sign up for QuickBooks or any other accounting program. CosmoLex allows you to track and manage tasks, activities, billable hours, accept flat or hourly fees, as well as accept LawPay payments. You can access more than 100 reports to better understand the financial performance of your company. CosmoLex is not compatible with many third-party software, which could be a problem if your practice uses multiple software. If you are looking for integrated client intake forms and customer relationship management (CRM), you may need to search for another solution.

LeanLaw: Small Law Firms Can Benefit from Integration With QuickBooks Online

LeanLaw is the ideal solution for QuickBooks Online users who need an accounting system that conforms to trust accounting rules and can perform a three way reconciliation. This software is perfect for law firms that have up to 30 lawyers. QuickBooks Online has been our best small business accounting software. But LeanLaw transforms it from general bookkeeping into a highly capable legal billing and accounting system.

 

  • Integrates with QuickBooks
  • Programs that are more affordable than similar programs
  • Automatically reconcile trust accounts
  • Comprehensive mobile app

  • You will need to subscribe separately to QuickBooks
  • Not able to manage communications, contacts or matter documents
  • There is no client portal for document sharing
  • It is not as robust as programs similar to it

Plans & Pricing

  • Core:$35/user per month for monthly contracts and $30/user per month for annual contracts
  • Pro:$50/user per month for monthly contracts and $40/user per month for annual contracts
  • Complete: Customized quote

The Core plan provides basic features such as timekeeping, QuickBooks Online integration and trust accounting. Higher plans include advanced functionality such as LEDES billing and advanced report templates. They also have access to top legal accountants.

 

Visit LeanLaw

Our Expert Opinion

LeanLaw is primarily a legal billing tool, but it has one of the greatest strengths: it automatically reconciles trust accounts. LeanLaw can help you correct any IOLTA balances that are not in balance. The powerful IOLTA accounting integrated into the invoicing workflow makes it possible to make legal trust deposits as well as pay invoices directly from trust accounts. It also integrates seamlessly with QuickBooks. You can use any device to record time. Intuit Payment Network allows you to process electronic payments through Intuit Payment Network. Time entries can be converted automatically into invoices through QuickBooks. LeanLaw supports standard LEDES codes to make it easy to invoice.

TimeSolv: Best Law Firm Bookkeeping Integration for Firms Using Xero

TimeSolv, a cloud-based timekeeping system and billing system with integrated project management capabilities, is available. It is not only focused on project management but also has powerful features to track time, expenses, and profits per case. It can be integrated with other tools such as QuickBooks and XeroMicrosoft 365 is also supported. Dropbox.

 

  • Integrates with industry-leading software such as QuickBooks and Xero
  • Unlimited projects and clients can be managed
  • Tracks time offline and on the move
  • For firms that only require project management, it is affordable

  • Subscription required to third-party software such as Xero
  • Only the higher plans have accounting features
  • No CRM tools

Plans & Pricing

  • $39.95 per user per month for 1 to 4 users
  • For 5-14 users, $34.95 per month
  • $29.95 per user per month for more than 15 users

TimeSolv Legal offers law-specific features such as unlimited clients, matters, and flexible billing options, including hourly, consolidated and fixed fees.

TimeSolv also provides bookkeeping assistance. For complete pricing information, visit TimeSolv

No credit card is required to sign up for the 30-day trial.

 

Visit TimeSolv

Our Expert Opinion

TimeSolv transforms your Xero accounting software into a powerful software for law firms. TimeSolv can be accessed from any location, and it is cloud-based. This makes it simple to track expenses and time. It offers both trust accounting and three-way reconciliation, as well as tools that will help you manage client matters. This program is ideal for those who bill on an hourly basis and need to keep track of associate performance. TimeSolv offers a wide range of legal management tools, including budgeting, document management and trust accounting. It also offers a mobile app that allows you to track any matter or project from anywhere.

Zola Suite: The Most Affordable All-in-One Cloud Based Solution

Zola Suite, a cloud-based platform for law practice management, offers a complete-featured solution with intelligent email management to manage case-related messages. It has many notable features, including document management, task management and billing. Trust accounting is also included. It is suitable for law firms that have three or more users.

 

  • The core plan is affordable
  • Accept credit card payments without monthly fees
  • Access to a client portal allows you to share files easily with your clients
  • Uses Zola products in conjunction

  • No integrated payroll processing
  • External accountants are not entitled to free access
  • Other programs have fewer features
  • Core edition cannot manage unpaid bills or vendors

Plans & Pricing

Zolo Suite needs at least 3 users to run any plan.

  • Core: $69 per user, month
  • Enterprise: $89 per user, per month
  • Enterprise Plus: $99 per user, per month

Core features include tools for managing documents, tasks and contacts, accounting, reports, and reporting. You will need the higher plans if you require CRM, intake management tools, custom permissions or advanced document management.

 

Visit Zola Suite

Our Expert Opinion

Zola Suite is the right choice for legal professionals who are looking for an affordable, cloud-based, all in one solution. However, they may have to sacrifice some of their more advanced features. Zola Suite Core costs $69 per month and will save you $20 per user compared to CosmoLex. If you feel you require more features, you can upgrade to Enterprise from the Core plan. This plan is great for companies that deal with a lot of documents per day, especially if they use Office365 or GSuite. The integrated email management tool allows you to manage case-related messages and contacts easily via email. Zola Suite works well with other Zola products. Zola Caseway makes it easy to send invoices and payments to clients.

Bottom line

PCLaw has the advantage of being a legal management program that does not require an accounting program. It’s a complete package that includes handy features such as simplified billing and easy expense and time capture. There are also many integrations with third-party software and other LexisNexis products. PCLaw is the right choice for you if you don’t need separate programs to manage your bank accounts, clients, cases, clients and legal matters.