Best Law Firm Accounting Software in 2023
Tim is a Certified QuickBooks Time (formerly TSheets) Pro, QuickBooks ProAdvisor, and CPA with 25 years of experience. He brings his expertise to Fit Small Business’s accounting content.
Danielle is a writer for the Finance division of Fit Small Business. She has owned a bookkeeping and payroll service that specializes in small business, for over twenty years.
This article is part of a larger series on Accounting Software.
The best law firm bookkeeping and accounting software must be able to handle client trust accounts (CTAs), including interest on lawyers’ trust accounts (IOLTAs), track time and expenses spent on cases accurately, and maintain detailed records to bill the client properly. It must also have a three-way reconciliation of client ledgers, trust accounts, and bank statements, in addition to other useful features, like customer relationship management (CRM), document management, and time tracking.
Here are our best law firm accounting software, which include both stand-alone solutions and general bookkeeping programs with integrations:
- PCLaw: Best overall all-in-one law firm accounting software
- QuickBooks Online: Best for small firms when integrated with LeanLaw
- CosmoLex: Best all-in-one cloud-based accounting and practice management solution
- Xero: Best legal accounting software for unlimited users when integrated with TimeSolv
- CARET Legal (formerly Zola Suite): Best all-in-one legal accounting software with CRM functions
- Clio: Best for law firms wanting fast and efficient communication tools
Best Law Firm Accounting Software at a Glance
Provider | Monthly Pricing | Trust Accounting | Matter Management | Legal Billing | Time Tracking | CRM | Document Management |
|---|---|---|---|---|---|---|---|
 | Custom quote | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
 | $30 to $200 per month | Requires LeanLaw integration | ✕ | Requires LeanLaw integration | ✓ | ✕ | ✕ |
 | $99 per user | ✓ | ✓ | ✓ | ✓ | Integrates with CosmoLex CRM | ✓ |
 | $13 to $70 | Requires TimeSolv integration | Requires TimeSolv integration | Requires TimeSolv integration | ✓ | ✕ | Requires TimeSolv integration |
 | $89 to $149 per user | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
 | $49 to $149 per user | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
Which Law Firm Accounting Software Is Best for You?
PCLaw: Best Overall All-in-One Law Firm Accounting Software
What We Like
- Built-in accounting suite; doesn’t require QuickBooks Online or Xero
- Data can be accessed anytime and anywhere with an internet connection
- All features are available in a single pricing plan
- An option to take your files online through cloud hosting
Drawbacks
- Can’t create invoices from scratch; need to use time/expense cards
- No integrated payroll system
- Tiered pricing is only available for firms with 10 or more users
- Invoices aren’t customizable
Features
- Matter management: PCLaw provides a centralized platform to manage and store matter-related information and transactions, including documents, to-do lists, and communications.
- Trust accounting: You can 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: PCLaw allows you to reconcile your bank statements to your bank journals to ensure your records are accurate.
PCLaw Overview
We selected PCLaw as the best overall all-in-one law firm accounting software because it offers everything you need in one package. You can use LEDES codes to streamline client billing, create multiple accounts for client trusts, firm funds, and Interest on Lawyer Trust Accounts (IOLTA) accounts, create tasks and assign them to different lawyers, and track time on the go with its mobile timekeeping app, PCLaw Go.
Since PCLaw is part of the LexisNexis family of legal practice management products, there are plenty of ways you can connect it with other programs that you currently use. It doesn’t have a built-in payroll management tool but it integrates with ADP to process payroll duties.
However, while PCLaw is a powerful solution, it’s complicated legal accounting software. As such, you might want to enlist the help of a professional bookkeeper or accountant who is familiar with the program.
QuickBooks Online: Best for Small Firms When Integrated With LeanLaw
What We Like
- Offers full-featured accounting, including bank reconciliation, check printing, and invoicing
- Deep integration with LeanLaw to allow three-way reconciliation and legal trust accounting
- Large network of QuickBooks ProAdvisor so it’s easy to look for bookkeeping support
- Includes a mobile app to track your finances on the go
Drawbacks
- Requires separate subscription to LeanLaw to add legal-specific features
- Has no matter management features even when integrated with LeanLaw
- Lacks other important features, such as CRM and document management
Features
- Invoicing: You can easily create and send invoices with QuickBooks Online. Once a time entry is made in LeanLaw, it’ll be pushed to your QuickBooks Online account for invoicing.
- Improved reporting: QuickBooks Online provides more options for reporting, including A/R aging, trust accounting, and attorney compensation/revenue reports.
- Legal billing: QuickBooks integrates with LeanLaw to comply 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.
- LeanLaw QuickBooks Online ProAdvisors: LeanLaw has a special program that matches law firms with QuickBooks Online ProAdvisors who are also proficient in LeanLaw.
- Timekeeping: Track time spent on a project using a calendar view with timers, a web app pop-up, and a mobile tracking app.
QuickBooks Online Overview
If you’re a QuickBooks Online user but need a legal accounting system that complies with trust accounting rules and will perform a three-way reconciliation, LeanLaw is the right integration for you. It is ideal for law firms with up to 30 attorneys. QuickBooks Online is already our overall best small business accounting software, but LeanLaw takes it one step further and converts it from general bookkeeping to a very capable legal billing and accounting system.
LeanLaw is mostly a legal billing software, but one of its biggest strengths is that it reconciles trust accounts automatically. On top of its deep QuickBooks integration, it 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.
CosmoLex: Best All-in-One Cloud-based Legal Accounting Software
What We Like
- Built-in accounting suite; doesn’t require QuickBooks
- Can access your data anytime and anywhere with an internet connection
- All features are available in a single pricing plan
- Accepts online payments with LawPay
Drawbacks
- Can’t create invoices from scratch; needs to use time/expense cards
- No integrated payroll system
- Tiered pricing is only available for firms with 10 or more users
Features
- Built-in legal trust accounting: Just like PCLaw, CosmoLex has built-in trust accounting tools that enable you to print disbursement checks, import bank statements, and run trust accounting reports, like trust client balances and trust ledger transactions.
- Billing and invoicing: Charge your clients for services in different ways, including fixed fees, hourly, and contingency billing. You can 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 it’s cloud-based, you can access your files wherever you are as long you’re connected to the internet.
CosmoLex Overview
What sets CosmoLex apart is its built-in cloud-based legal-specific accounting suite, which you can’t find in most legal practice management programs. This means you don’t have to subscribe to QuickBooks or any other accounting software.
With CosmoLex, you can track and manage tasks and activities, capture billable hours, accept contingent, flat, or hourly fees, and accept payments with LawPay. It also includes more than 100 reporting options to help you better understand your firm’s financial performance.
On the downside, CosmoLex doesn’t have ample integration with third-party tools, which can be an issue if you’re using multiple software in your practice. For instance, you might need to look for an alternative if you want a solution with integrated CRM tools and client intake forms.
Xero: Best for Unlimited Users When Integrated With TimeSolv
What We Like
- Allows you to set up as many users as needed without paying an additional fee
- Includes built-in bookkeeping features, such as bank reconciliation and cash flow management
- Integrates with TimeSolv to provide trust accounting features
- Manage and track your finances on the go with the Xero mobile app
Drawbacks
- Requires separate subscription to TimeSolv
- Has no legal-specific accounting features, such as CRM
- Limited number of invoices in the lowest plan
- No time-tracking feature without TimeSolv integration
Features
- Unlimited user access: Xero lets you add an unlimited number of users regardless of the plan you choose. With other similar accounting software, you have to pay an additional fee for each added user.
- TimeSolv integration: Xero itself has a robust set of general accounting features, but it integrates with TimeSolv to allow legal accounting functionality, such as trust accounting and LEDES billing.
- Time and expense tracking: With TimeSolv integration, time and expense entries can be logged and tracked easily using the intuitive Time Entry and Expense Entry forms.
- Invoicing: Xero lets you send batch invoices and set up recurring invoices. When integrated with Xero, you can split bills or choose fixed fees when charging your clients for your services.
Xero Overview
If you’re looking for accounting software that can accommodate multiple users, Xero is a great option. And if you need law firm-specific accounting, TimeSolv will convert your Xero platform to powerful law firm software. TimeSolv is cloud-based, making it easy to track time and expenses from anywhere. It provides both the required trust accounting with three-way reconciliation as well as tools to help better manage your client matters.
If you bill on a detailed hourly basis or need to track associate performance, you will most likely benefit from this program. TimeSolv also has a great list of legal management features like trust accounting, budgeting, document management, and project management. You can use its mobile application to track a matter or project on the go.
CARET Legal: Best for CRM Functions
What We Like
- Includes CRM and client intake forms
- Accepts credit card payments with no monthly fee
- Includes a client portal to easily share files with clients
- Uses LEDES for streamlined billing
Drawbacks
- No integrated payroll processing
- No free login for your external accountant
- Cannot manage unpaid bills and vendors with Core edition
- Users complain that it takes several steps to create an invoice
Features
- CRM: CARET Legal’s built-in CRM system enables you to create and manage tasks, events, emails, and notes relevant to your prospects.
- Matter management: CARET Legal lets you create 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: Create 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: You can 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: This feature enables you to reconcile your accounts manually to ensure that your trust transactions are recorded accurately.
CARET Legal Overview
CARET Legal (formerly Zola Suite) is a good fit for legal professionals seeking a legal accounting software with strong CRM features. It is also a great fit for firms handling a large volume of documents every day, especially if you’re using Office 365 or Google Workspace.
Its integrated email management tool helps you manage case-related contacts and messages easily through email. Its other notable features include matter management, task management, time tracking and billing, and trust accounting. It’s suitable for law firms with three or more users.
Clio: Best for Fast & Efficient Communication Tools
What We Like
- Includes built-in trust accounting features
- Offers unique features, such as short message service (SMS) messaging and a website builder
- Allows you to compare predicted time estimates and actuals
- All plans include unlimited document management
- Has a functional mobile app
Drawbacks
- Can’t perform bank reconciliation; requires QuickBooks Online or Xero
- Some important features, such as CRM and the website builder, are offered in the most expensive plan
- Telephone support is only available in the higher plans
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.
- Communication hub: The communications hub includes an SMS messaging feature that allows you to send text messages using a toll-free number.
- Strong integration: Clio integrates with over 200 apps, including Gmail, Google Drive, MailChimp, and Dropbox.
- Mobile app: The mobile app includes almost all of Clio’s desktop features, such as task management, document management, and time tracking.
Clio Overview
Clio is an excellent option for law firms seeking quick and efficient communication tools—its built-in text messaging feature allows you to communicate quickly with your clients and team members. You can also integrate the software with some of your favorite business management tools, and you can process unlimited documents in any Clio plan. It also stands out for its unique features, such as SMS text messaging and a do-it-yourself (DIY) website builder, making it among the most affordable legal practice management solutions.
How We Evaluated Law Firm Accounting Software
We evaluated the best law firm accounting software based on pricing, ease of use, customer support, and the availability of essential legal-specific features, including:
- Matter management: The best law firm accounting software should have a streamlined way of managing legal matters, including contracts and transactions, trust accounting, billing of case-related events, and compliance.
- Time tracking: As a lawyer, you need good software to track the time you spend on different clients and cases accurately, so we looked into whether the best platforms can help with this.
- Trust accounting: The software must provide a way to track both aggregate client funds in your client trust account and the amount of those funds owed to each client. It must also provide a list of trust transactions separated by the client and let you perform a triple reconciliation between the client trust account, client ledgers, and bank statement easily.
- Billing system: The billing system must generate professional-looking invoices that can be printed or emailed. It should also track time and expenses by client job and service code. Billing rates should be allowed to vary by service code and employee, and employees should be able to track and report time and expenses while away from the office.
- Practice management: You might like practice management features integrated with your accounting and billing systems. Common features include client portals, secure communications, document management, calendars with integrated time tracking, and matter dashboards with links to all relevant parties, documents, time, expenses, and invoices.
Frequently Asked Questions (FAQs)
Law firm accounting software is a specialized accounting software designed to meet the unique needs of law firms. It can manage financial transactions, track billable hours, generate invoices, and provide reports on a law firm’s financial health.
Yes, they are different. General accounting software is designed to perform common accounting tasks, while law accounting software is specially created for lawyers and law firms and includes features to aid in accounting for funds held in trust for clients.
No, it isn’t. While QuickBooks Online is extremely customizable, it has no legal-specific features that law firms need, such as trust accounting, legal billing, and legal-specific reports. This is why we recommend adding a LeanLaw integration, which is ideal for law firms with up to 30 attorneys.
Yes, you can—but it’s best that you integrate them with legal accounting solutions. For instance, you can integrate QuickBooks Online with LeanLaw to develop a powerful legal billing and accounting solution.
Law firms need accounting software to manage their financial records efficiently and accurately. These entities deal with a large number of financial transactions, including billing clients for their services, managing a client’s trust account, paying employees, and invoicing clients. Accounting software can automate many of these processes and provide real-time information on a law firm’s financial status.
Bottom Line
While PCLaw is our overall best legal accounting software, it doesn’t mean it’s good for every law firm. If you don’t want to use separate programs for managing your bank accounts, cases, clients, and legal matters, then PCLaw is right for you. If you’re currently using QuickBooks Online and want to transform it into a capable legal accounting solution, then you can integrate it with LeanLaw. If you need a program to help you automate your CRM workflows and can help you manage leads, then CARET Legal is a great option.
