Best Law Firm Accounting Software in 2023
This article is part of a larger series on Accounting Software.
The best law firm bookkeeping 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 solutions, which include both stand-alone software and general bookkeeping programs with integrations:
- PCLaw: Best overall all-in-one law firm accounting software
- QuickBooks Online: Best accounting software for small firms when integrated with LeanLaw
- CosmoLex: Best for law firms needing an all-in-one cloud-based accounting and practice management solution
- Xero: Best legal accounting software for unlimited users when integrated with TimeSolv
- Zola Suite: Best for law firms needing an 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
|
|
|
|
|
|
|
|
---|---|---|---|---|---|---|---|
|
Custom quote |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
Visit PCLaw | |||||||
|
$30 to $200 per month |
Requires LeanLaw integration |
✕ |
Requires LeanLaw integration |
✓ |
✕ |
✕ |
Visit QuickBooks Online | |||||||
|
$99 per user, per month |
✓ |
✓ |
✓ |
✓ |
Integrates with CosmoLex CRM |
✓ |
Visit CosmoLex | |||||||
|
$13 to $70 per month |
Requires TimeSolv integration |
Requires TimeSolv integration |
Requires TimeSolv integration |
Requires TimeSolv integration |
✕ |
Requires TimeSolv integration |
Visit Xero | |||||||
|
$69 to $99 per user, per month |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
Visit Zola Suite | |||||||
|
$49 to $149 per user, per month |
✓ |
✓ |
✓ |
✓ |
✓ |
✓ |
Visit Clio |
PCLaw: Best Overall All-in-One Law Firm Accounting Software
PCLaw
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
- Enables you to manage critical information about your cases and matters
- Uses Legal Electronic Data Exchange Standard (LEDES) codes to streamline client billing
- Helps you manage separate accounts for client trusts, firm funds, and Interest on Lawyers’ Trust Accounts (IOLTA) accounts
- Lets you create and assign tasks to different lawyers
- Allows you to track billable time and expenses using timesheets, timer plugins, or the timekeeping app, PCLaw Go
- Streamlines client and lead communication with client intake forms
PCLaw Overview
QuickBooks Online: Best for Small Firms When Integrated With LeanLaw
QuickBooks Online
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
- Lets you generate and send customized invoices to clients
- Tracks time from any device (requires at least QuickBooks Essentials)
- Allows you to set hourly billing rates for each of your legal services
- Processes electronic payments through QuickBooks Payments
- Integrates with LeanLaw to allow legal-specific features, such as LEDES billing and trust accounting
QuickBooks Online Overview
CosmoLex: Best All-in-One Cloud-based Legal Accounting Software
CosmoLex
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
- Offers built-in accounting, such as the ability to set up and manage individual client ledgers
- Lets you manage and track all items and events related to matters and cases
- Tracks time in multiple ways
- Supports different billing methods, such as fixed fee, hourly, and contingency billing
- Allows you to create time and expense entries and easily convert to invoices
CosmoLex Overview
Xero: Best Legal Accounting Solution for Unlimited Users When Integrated With TimeSolv
Xero
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
- Lets you create and send invoices with multiple levels of details
- Tracks account cash flow in real time
- Enables you to run invoicing and billing reports that aid in financial management
- Offers built-in general project management tools, such as estimate creation and management
- Integrates with TimeSolv to provide legal-specific features, like matter management and time-tracking
- Has a TimeSolv integration that allows management and payment of trust accounts using credit cards
Xero Overview
Zola Suite: Best for Law Firms That Need CRM Functions
Zola Suite
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
- Integrates with other Zola products
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
- Tracks billable time and expenses
- Lets you create a new invoice from scratch or one from a time and expense entry
- Reconciles trust accounts manually
- Allows you to track all matter-related information
- Helps you better manage customer and lead interaction better with its CRM features
Zola Suite Overview
Clio: Best for Law Firms That Need Fast & Efficient Communication Tools
Clio
What We Like
- Includes built-in trust accounting features
- Offers unique features, such as 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
- Records and tracks time and expense entries (called activities)
- Tracks all important items related to legal cases and matter
- Adds and manages any type of contact
- Monitors important events and schedule deadlines with the calendar
- Creates and assigns tasks to team members
- Lets you send and receive SMS and multimedia messaging service (MMS) messages from your contacts
Clio Overview
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)
Are law accounting software different from general accounting software?
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.
Is QuickBooks Online considered legal accounting software?
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.
Can I use generic software programs to manage my legal accounting?
Yes, you can use generic software programs, 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.
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 Zola Suite is a great option.