Clio even integrates with word processing software, so you can create and edit docs with familiar programs and save them to Clio with one click. TimeSolv has been around since 1999 and offers project management and billing software for firms of all kinds—consultants, PR, freelancers, accountants and lawyers. It caters to “Mac firms,” because of the seamless syncing across devices, but it offers apps for Android and PCs as well as iOS and Macs, along with its cloud-based app. Larger law firms that need an all-in-one accounting system with more advanced features should consider tools like PCLaw and LeanLaw.

Therefore, it’s imperative that you run your business based on a fool-proof financial process. Trust accounts are one of the most common areas where legal accounting mistakes are made. Whether you mismanage the accounts, put funds in the wrong account, accidentally use funds, or fail to report correctly, trust accounting errors are a big deal in accounting for law firms.

TaxSlayer

Rocket Matter lets you set up automated billing, so invoices will be sent out on a chosen schedule based on your billable hours and expenses. The platform includes conflicts management and trust accounting for your law firm’s unique needs. Once the accounting software is in place, law firms need to set up invoicing and payment tracking.

The fee structure for every payment provider differs, and before you decide, ensure you know your numbers and the effect of the provider’s fee on your bottom line. The income statement provides other information like the status of revenues, pinpointing irregular or inconsistent expenses, and overall company performance. Let’s face it, the legal pad did not get named by office supply stores! Accounting is a Tactical tool to the overwhelming Strategic challenge you are facing as a Small Law Firm. When organized as a business system – accounting can provide strategic clarity and confidence for decision making and planning as you build. When it comes to organization, getting off on the right foot should help you stay more organized now and into the future.

Flexible, Affordable Service Options

That’s also why we recommend eventually hiring a professional bookkeeper to ensure nothing falls through the cracks. By now, you know you can’t simply create a financial strategy and budget and sit back and relax. Using key performance indicators will help you know sooner if you’re on track.

• That’s why accrual accounting necessitates you track accounts receivable and accounts payable on your balance sheet.
• To avoid this type of situation, use accounting software that allows you to automate these processes.
• In addition to accounting, your law firm likely needs other software.
• It also requires the bank account and book balances to match client ownership details.
• Once you’re geared with this information, refresh your knowledge on how to read the critical financial statements for your practice, like the income and cash flow statements and balance sheets.

This is because a professional legal bookkeeper and accountant can help you manage your firm’s revenue and ensure your firm’s financial transactions are handled ethically and accurately. Award-winning support means talking to a real person for the help and info you need because we provide so much more than just online accounting software for law firms. Getting paid is an important part of running a law firm, so having on online payment service is vital to growing and sustaining your law practice. Online payment services make paying your firm easy for your clients and automated for you. SharePoint, part of Office 365, is an Intranet and lightweight document management system.

What is Law Firm Accounting Software?

This method does not recognize various payment accounts, such as accounts receivable and payable. Specifying your accounting methods and needs is another important step to mastery of legal accounting and financial management. The appropriateness of one method over the other highly depends on the characteristics of your firm.

This method does not recognize accounts receivable or accounts payable. Every state has an IOLTA program, and it’s likely that the bank where you opened your regular business checking account also offers IOLTA accounts. But rules do vary by state, so consult your State Bar Association law firm bookkeeping and a professional accountant before finalizing your accounting setup. Make sure you’re clear on all of the law firm accounting obligations related to managing and growing your business. The following guide explains the fundamentals of law firm accounting and bookkeeping.

Send invoices from the app and get alerts the moment they’re paid. That includes things like affordability, ease of use, and suite of features (client management, financial management, project management, etc.). You can make the right buying decision only by knowing exactly what features you’re looking for. You’ll be able to import bank statements, run trust accounting reports, and print disbursements checks, all from one platform. In this section, we’ll take a quick look at how the top 10 legal accounting software solutions compare against each other in terms of pricing. As a secondary layer of reconciliation, you’ll also need to make sure that each client’s IOLTA balance on your firm’s books adds up to the total balance of your IOLTA bank account.