6 Best Law Firm Accounting Software

I find TimeSolv to be an excellent practice management software, especially for tracking time and managing trust accounts. Its project management features also stand out, allowing law firms to efficiently track ongoing projects, schedule and manage budgets, and monitor project milestones. I recommend TimeSolv paired with Xero because this combination offers enhanced project management through Xero’s project accounting capabilities.

Standout Features

• Unlimited user access in Xero: Add an unlimited number of users in Xero regardless of the plan you choose. With similar accounting software, you have to pay an additional fee for each added seat.
• Invoicing in Xero: Send batch invoices and set up recurring invoices. When TimeSolv’s integrated with Xero, you can split bills or choose fixed fees when charging your clients for your services.
• TimeSync: TimeSolv’s TimeSync app is a free desktop program (Windows and Mac) that you can use to track time without an internet connection. TimeSync will track your time and log expenses as you go, and it will automatically sync once you’re reconnected to the internet.
• Client portal: Use this as the central hub for sending bills and updating clients on important projects. Your clients can use it to track their transactions and bills.

Use Cases

• Large-scale law firms: Integrating TimeSolv with Xero is great for law firms with multiple accounting users. When you integrate the two solutions, you can access strong case management and legal bookkeeping functionality, such as legal billing and invoicing, document management, and a client portal.
• Solo practitioners often working in areas with limited or no internet connectivity: TimeSolv’s free desktop app, TimeSync, lets you log time even when offline. You can sync your data later when you get back online.

TimeSolv scored exceptionally high in pricing due to its overall affordability, and it nailed my review of its accounting features thanks to its integration with Xero. Among all the providers I looked at, TimeSolv offers the most affordable pricing structure.

It did, however, lose some points in ease of use because it requires integration with Xero. I prefer law firm accounting software that combines accounting and practice management in a single platform, like CosmoLex for a cloud-based solution or PCLaw for a desktop program.

What I think really sets CosmoLex apart from the other solutions in this guide is its built-in CRM suite. It enables law firms to send personalized messages and email campaigns to clients and maintain existing relationships with them. It ensures that all client communication is streamlined and managed in one place, making it easier to handle client concerns effectively.

Standout Features

• Billing and invoicing: Charge your clients for services in different ways, including fixed fees, hourly, and contingency billing. Create legal-specific invoices, and send and print invoices in bulk.
• Matter management: Manage items and events related to matters, including invoices, time cards, expense cards, and trust transactions.
• Document management: Store and manage your files and documents securely. Since CosmoLex is cloud-based, you can access your files wherever you are, as long as you’re connected to the internet.

Use Cases

• Law firms wanting one tool for managing their legal practice and accounting: CosmoLex has built-in accounting features, so you don’t have to integrate QuickBooks or any other bookkeeping program.
• Law firms that have plans to scale but can’t afford to switch to a more expensive platform: CosmoLex has two tiers to choose from—and the higher contains additional features like workflows, automations, and budgeting.
• Those working remotely: Since CosmoLex is cloud-based, you can access and manage your data anywhere, making it a great choice for busy lawyers and timekeepers who are often out of the office to meet clients and prospects.

CosmoLex earned high scores in my assessment of its accounting and practice management features. It covers all the essentials I looked for, such as customizing the chart of accounts, emailing invoices, customizing reports, and reconciling bank accounts.

However, it missed the mark slightly in practice management when it comes to document storage. While its native system offers unlimited storage, it limits individual file uploads to a maximum of 100MB. For larger files, you’ll need to integrate with third-party services like OneDrive or Google Drive.

Also, its pricing is on the higher side compared with other options in this roundup, which might make it less appealing to smaller law firms, and I believe adding more support channels, like live chat or chatbot assistance, could significantly improve customer support accessibility.

Given these factors, my recommended alternative to CosmoLex would be TimeSolv with Xero. It’s a more affordable option that’s well-suited for smaller law firms with basic or intermediate legal accounting needs.

I recommend PCLaw for firms that prefer desktop accounting over cloud-based options. It supports LEDES codes to streamline client billing, lets you create multiple accounts for client trusts, firm funds, and IOLTA, and even allows task creation with assignments to different lawyers. Plus, its mobile timekeeping app, PCLaw Go, enables you to track time on the go.

That said, despite PCLaw’s robust capabilities, it’s quite a complex piece of legal accounting software. Because of this, you might consider working with a professional bookkeeper or accountant who’s well-versed in the program. And given that PCLaw is a desktop solution, it lacks the accessibility you get with cloud-based software. For flexibility, I recommend exploring cloud-based solutions like all the other options on this list.

Standout Features

• Matter management: Get a centralized platform to manage and store matter-related information and transactions, including documents, to-do lists, and communications.
• Trust accounting: Execute trust accounting functions, such as writing checks, accepting client payments, and reconciling trust bank journal balances to your client listing.
• Time tracking: Track billable and non-billable time using PCLaw’s timesheets or timer plugins. If you want to track time on the go, you’ll benefit from the PCLaw Go mobile app.
• Bank reconciliation: Reconcile your bank statements to your bank journals to ensure your records are accurate.

Use Cases

• Firms needing an all-inclusive legal management platform: PCLaw provides a single platform where you can manage your clients, cases, bank reconciliations, billing processes, and financial reports.
• Legal practitioners using other products from LexisNexis: The program integrates with other LexisNexis products, such as Amicus Attorney and Time Matters.
• Lawyers charging by the hour: PCLaw’s built-in time tracker, Time Entry Advisor, lets you automatically log billable hours and bill them to clients.

PCLaw scored excellently in both accounting and practice management features. As desktop software, it delivered on all the essentials I was looking for. It fell short in areas like linking bank accounts and emailing invoices to clients. These tasks need to be performed manually—PCLaw doesn’t offer automation for them. You’ll have to send invoices to each client individually and upload bank statements instead of having automated bank feeds.

While PCLaw includes nearly all the practice management features I expected, it lacks client portals—which I understand given its nature as desktop software. It also comes with a steep learning curve that might be too advanced for some users. For those who prioritize ease of use, I recommend alternatives like TimeSolv with Xero or LeanLaw with QuickBooks Online.

Integrating LeanLaw with QuickBooks Online completes LeanLaw’s missing features, such as performing bank reconciliations and generating accounting reports. LeanLaw doesn’t disappoint on practice management features, however, such as trust accounting and three-way reconciliation.

It also comes with a comprehensive time tracking tool that allows you to capture time using any device. Time entries are converted into invoices automatically through QuickBooks, and electronic payments can be processed through the Intuit Payment Network. LeanLaw also supports standard LEDES codes for easy invoicing.

Standout Features

• Convenient invoicing: LeanLaw automatically sends invoices to QuickBooks Online every time an entry is made.
• Timekeeping: Track time spent on a project using a calendar view with timers, a web app pop-up, and a mobile tracking app.
• Improved reporting in QuickBooks Online: QuickBooks Online provides more options for reporting, including A/R aging, trust accounting, and attorney compensation/revenue reports.
• Legal billing: LeanLaw complies with LEDES and American Bar Association (ABA) standards for billing and invoicing clients. Invoices are submitted to LEDES billing systems, including eCounsel, Lawtrac, Legal Tracker, and CounselLink.

Use Cases

• Law firms needing a powerful legal management and accounting solution: Through LeanLaw with QuickBooks Online, you can perform all essential accounting tasks on QuickBooks Online and trust accounting in LeanLaw. The deep integration makes it easy to sync information between the two software.
• Legal firms requiring professional bookkeeping support often: Another reason to integrate LeanLaw with QuickBooks is easy access to QuickBooks ProAdvisors in case you need extensive bookkeeping support. Additionally, LeanLaw will provide the necessary resources and support to help you find a QuickBooks ProAdvisor who is also proficient in the LeanLaw software.

LeanLaw didn’t get a high score in practice management features primarily because its matter management is focused on the financial side. While you can add time entries and expenses to client matters, I found that it lacks tools for managing non-financial information.

The platform took a hit in ease of use due to its limited support channels and the need for integration with accounting software. Without QuickBooks Online, LeanLaw’s accounting capabilities fall short of what most legal practices require. For more comprehensive matter management features, look into TimeSolv or CARET Legal.

Clio’s built-in text messaging feature allows you to communicate quickly with your clients and team members. The SMS feature allows you to send text messages using a toll-free number. You can also integrate the software with some of your favorite business management tools and process unlimited documents in any plan. Clio also stands out for its DIY website builder, making it among the most affordable legal practice management solutions.

Standout Features

• Document management: Easily add any type of contact, such as a vendor, a witness, or an outside counsel. You can also assign matters, documents, and bills to each contact. Clio offers unlimited document management in all its plans.
• Mobile app: The iOS and Android mobile apps include almost all of Clio’s desktop features, such as task management, document management, and time tracking.

Use Cases

• Law firms working with multiple clients and associates: The SMS messaging feature is useful for lawyers needing a fast and efficient way to communicate with their clients and their staff and for partners, including associates and paralegals.
• Lawyers and law firms needing a new website: Clio’s built-in website builder lets you create simple, single-page websites without using codes.
• Law firms using different business tools: Clio integrates with over 200 business applications, such as Zoom, Gmail, and QuickBooks Online.

Clio’s accounting score landed only slightly above average due to the lack of bank reconciliation features. However, integrating it with accounting software like QuickBooks Online can help bridge that gap, providing a more complete set of accounting tools.

While Clio earned high marks in practice management, it could have aced the criterion if it didn’t rely on third-party integrations for document management and file hosting with systems like Dropbox and Google Drive.

If bank reconciliation is a priority for you, I suggest considering TimeSolv with Xero or LeanLaw with QuickBooks Online. Both Xero and QuickBooks Online offer robust bank reconciliation features that stand out.

I believe CARET Legal is a solid choice for legal professionals looking for software with strong matter management features, which allows you to filter and view matters from various perspectives. It is especially suited for firms that handle a significant number of documents daily and is optimized for seamless use with Microsoft 365 or Google Workspace.

It lets you track contacts, time, events, and expenses efficiently. It also offers advanced capabilities like customizing matters by practice area and assigning them to the responsible attorney. It even has built-in accounting features for trust accounting and billing. However, in case you need more accounting features, it can integrate with QuickBooks Online, which gives you more control over your law firm’s accounting.

Standout Features

• CRM: Create and manage tasks, events, emails, and notes relevant to your prospects.
• Matter management: Organize matter-related contacts and roles, set unique permissions on a matter level, and add notes to share with clients or team members.
• Client intake forms: Manage client intake forms that you can email to your prospects. Once the forms are completed, you can convert the new lead information into a matter easily.
• Billing: Bill your clients directly from time entries or create a new invoice from scratch. CARET Legal uses the LEDES billing method to make it easy for law firms to issue and track invoices.
• Smart Account Reconciliation module: Reconcile your accounts manually to ensure that your trust transactions are recorded accurately.

Use Cases

• Managing client information: Through its robust matter management and built-in CRM features, law firms and lawyers can use the client intake tools to ensure that no important communication, clients, and leads fall through the cracks.
• Lawyers managing a high volume of legal documents: CARET Legal’s higher tiers, Enterprise Insights and Enterprise Advance, allow you to manage and store unlimited documents.

I couldn’t award a higher mark for practice management due to CARET Legal’s limited trust accounting capabilities. Its features for trust accounting aren’t as robust or comprehensive as other options in this guide, managing only the basics. If robust trust accounting is a priority, I’d recommend exploring TimeSolv with Xero as an alternative.

CARET Legal’s built-in CRM is also great, making it a solid choice if you’re looking for a central hub to communicate with clients only. Unfortunately, its CRM doesn’t have email campaigns, so you may want to check CosmoLex if email campaigns are important to your business.