20 Best Small Law Firm Accounting Software In 2024
10 Best Small Law Firm Accounting Software Shortlist
Here's my pick of the 10 best software from the 20 tools reviewed.
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Managing a legal practice involves juggling many elements, from matter management to bookkeeping, and the last thing you need is to be buried under accounting tasks when you should be focusing on providing top-notch legal services.
Small law firm accounting software are tools that will alleviate your administrative burden, streamline your operations, and ultimately give you more time to do what you do best: practicing law. I believe these options will provide the solutions you need, and I invite you to explore them further.
How To Choose The Best Small Law Firm Accounting Software For You
You'll want to ensure the best fit possible when looking for small law firm accounting software for your team. Here are the questions you should be asking yourself before making a purchasing decision:
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⬜ What are your goals for employing law firm accounting software?
⬜ Have you ever used law firm accounting software before?
⬜ How many users will need access to the tool? And how often?
⬜ What are 3 key software features you can't live without?
⬜ What unique or niche needs does your company have?
⬜ What channels does it need to connect to? Time tracker, other?
⬜ What's your budget for small law firm accounting software?
It could be helpful to write down the answers to these questions before you start reading the reviews below. That way, you can measure each tool against the features, functionality, and flexibility you actually need.
What Is A Small Law Firm Accounting Software?
Small law firm accounting software is a specialized tool, tailor-made to help legal practitioners and law firm administrators manage the unique financial and operational intricacies of their practices. From tracking billable hours, managing invoices, and handling trust accounting to simplifying tax compliance, these software solutions enable small law firms to maintain an organized, efficient, and compliant financial practice.
They're used by law firms that seek to streamline their accounting processes, improve productivity, and provide better client service, ultimately supporting the financial health and growth of the firm.
The Best Small Law Firm Accounting Software: Comparison Chart
| Tools | Price | |
|---|---|---|
| Clio | From $39/user/month (billed annually) | Website |
| Actionstep | From $60/user/month (billed annually) | Website |
| Firm360 | From $59/user/month (min 3 seats) | Website |
| uLawPractice | From $34/user/month (billed annually) | Website |
| Soluno | From $26/user/month | Website |
| Firm Central | From $40/user/month | Website |
| Jubilee | From $39/user/month (billed annually) | Website |
| TimeNet Law | From $299 (one-time fee) | Website |
| PracticePanther Legal Software | From $39/user/month (billed annually). | Website |
| Quill | From $8/user/month (billed annually) | Website |
Compare Software Specs Side by Side
Use our comparison chart to review and evaluate software specs side-by-side.
Compare SoftwareReviews Of The Best Small Law Firm Accounting Software
Clio is a comprehensive law firm management software with a strong emphasis on time-tracking and billing. It's an ideal choice for small law firms that need to track billable hours accurately and generate invoices effortlessly, making it the best choice for time-tracking and billing needs.
Why I Picked Clio: In my assessment, Clio shines when it comes to time-tracking and billing functionalities. While choosing, I realized that Clio offers precise time tracking coupled with an intuitive billing system, which is a pivotal need for many law firms. That’s why I believe Clio is best for small law firms that prioritize accurate time tracking and billing.
Standout Features & Integrations:
Key features of Clio include its robust time tracking, automated billing, and extensive reporting capabilities. These features are designed to streamline firm operations while providing a wealth of data for better decision-making.
Furthermore, Clio integrates well with popular tools such as Office 365, Google Workspace, and QuickBooks, providing a more connected and efficient working environment.
Pros and cons
Pros:
- Offers extensive reporting capabilities
- Integrates with major platforms like Office 365, Google Workspace, and QuickBooks
- Stellar time tracking and billing system
Cons:
- Some users may prefer more specialized software for their specific legal area
- Might have a learning curve for users not accustomed to such a comprehensive tool
- Can be expensive for solo practitioners or very small firms
Actionstep is a cloud-based legal practice management software, providing an all-in-one solution for law firms. It encompasses a wide array of functionalities including case management, billing, accounting, and even CRM capabilities, making it a versatile choice for law firms that need a comprehensive solution.
Why I Picked Actionstep: I selected Actionstep for its versatility and all-in-one approach to law firm management. It caught my attention with its wide range of features, from case management to billing, to its in-built CRM capabilities, making it a comprehensive tool. Therefore, I believe it's best for end-to-end law firm management, as it provides a single platform for managing all aspects of law practice.
Standout Features & Integrations:
Actionstep's standout features include robust workflow automation capabilities, which can be highly customized to fit a law firm's unique process. It also boasts a built-in document assembly for efficient document creation and management.
Regarding integrations, Actionstep provides connections with key platforms like Microsoft 365, Xero, and InfoTrack, enhancing its functionality and ease of use.
Pros and cons
Pros:
- Integrations with key platforms
- Robust workflow automation capabilities
- Comprehensive all-in-one platform
Cons:
- More expensive than some other options
- User interface could be more intuitive
- Can be complex for beginners due to its comprehensive nature
Firm360 is a robust tool that provides an all-in-one solution for managing accounting, time tracking, and billing for small law firms. The system's focus on streamlining various business processes corresponds well with its position as the best tool for integration across business operations.
Why I Picked Firm360: In selecting software, I found Firm360's ability to bring together multiple crucial functions into one platform appealing. It’s not every day you find a tool that caters to diverse aspects of law firm operations in such a cohesive manner. In my judgment, its consolidated approach justifies the label of being the best for integration across business operations.
Standout Features & Integrations:
Firm360 offers impressive features such as trust accounting, expense management, and client intake forms, all designed to enhance efficiency. It also boasts advanced analytics for a more in-depth look into your firm's financial health.
When it comes to integrations, Firm360 connects with Google Calendar, Office 365, and QuickBooks, allowing users to synchronize data across multiple platforms.
Pros and cons
Pros:
- Compatible with major platforms like Google Calendar, Office 365, and QuickBooks
- Provides advanced analytics for better financial insight
- Consolidates multiple functions into a single platform
Cons:
- Some users may find the range of features overwhelming
- Requires a minimum of 3 seats, which may not suit solo practitioners
- Higher starting price compared to some alternatives
uLawPractice is a Canadian cloud-based legal practice management and legal accounting software. It is uniquely designed to meet the regulatory requirements of the Canadian legal market, making it an ideal solution for legal practitioners who need a tool that abides by local regulations.
Why I Picked uLawPractice: In deciding on uLawPractice, it was the software's emphasis on Canadian regulatory requirements that made it distinctive. Other generic tools may not offer this level of compliance. Hence, I chose uLawPractice as the best tool for Canadian legal practitioners, as it's tailored to cater to their unique needs, keeping them aligned with local rules and regulations.
Standout Features & Integrations:
uLawPractice boasts key features like comprehensive legal accounting, practice management, and business accounting, all adhering to Canadian legal regulatory compliance.
In terms of integrations, it smoothly integrates with Canadian banks, allowing for simplified transaction reconciliation, which is an immense advantage for Canadian users.
Pros and cons
Pros:
- Smooth integration with Canadian banks
- Comprehensive legal and business accounting features
- Tailored to Canadian legal compliance requirements
Cons:
- Limited integrations with non-Canadian systems
- User interface could be more modern and intuitive
- Limited applicability outside Canada
Soluno is a cloud-based law practice management software that focuses on timekeeping and billing for legal professionals. It simplifies the management of billable hours, expenses, and invoicing, which streamlines the financial side of law practices.
Why I Picked Soluno: I chose Soluno because of its specialization in time management and billing for legal practitioners. It differentiates itself by delivering a comprehensive set of tools designed explicitly for tracking billable hours, managing expenses, and generating detailed invoices. Therefore, I regard Soluno as the best choice for law firms that want to optimize their time management and billing processes.
Standout Features & Integrations:
Soluno's standout features include its time-tracking capabilities, expense management tools, and advanced invoicing options.
As for integrations, Soluno partners with several leading platforms, including QuickBooks for accounting, LawPay for online payments, and Microsoft Office for productivity.
Pros and cons
Pros:
- Offers advanced invoicing options, providing flexibility for billing
- Integrates with several leading platforms for accounting, payments, and productivity
- Designed specifically for timekeeping and billing, making it ideal for law firms
Cons:
- The price point might be high for smaller law firms
- The user interface could be improved for better ease of use
- It might be over-specialized for law firms that need broader practice management tools
Firm Central by Thomson Reuters offers a blend of comprehensive law firm management along with embedded legal research features. As a product of one of the world's largest providers of business information services, it serves as a reliable solution and is particularly advantageous for small law firms that value integrated legal research.
Why I Picked Firm Central: During my selection process, Firm Central stood out due to its deep integration of legal research features, a characteristic that sets it apart from its competitors. Being a product of Thomson Reuters, a leading authority in the legal industry, it provides a wealth of resources that enhance its value.
Therefore, I chose it as the best tool for small law firms seeking comprehensive management with integrated legal research.
Standout Features & Integrations:
Firm Central provides robust features like task tracking, billing, calendaring, and document management. However, its standout feature is the integrated access to Westlaw, a premier online legal research service.
With regard to integrations, Firm Central works with other Thomson Reuters solutions and also supports QuickBooks for financial management.
Pros and cons
Pros:
- Backed by a reputable name in the industry
- Comprehensive management features
- Integrated with Westlaw for legal research
Cons:
- Potential for overwhelming features for smaller firms
- The interface may seem complex for first-time users
- More expensive than some alternatives
Jubilee is a cloud-based legal software that excels in managing bankruptcy cases. This specialization, in addition to standard law firm operations like case management and accounting, justifies it as the best choice for firms focusing on bankruptcy cases.
Why I Picked Jubilee: Jubilee stood out for me when I was making my selection because of its focus on bankruptcy law. Not many legal software options can claim such specific expertise. Comparatively, this unique selling point made me realize that Jubilee is best for law firms that manage bankruptcy cases, as it can provide a tailored, efficient experience.
Standout Features & Integrations:
Key features of Jubilee include its case management functionality, bankruptcy forms preparation, and intuitive accounting system. Furthermore, the tool's notice management feature sets it apart, making it easy to handle bankruptcy notifications. Jubilee also integrates with NDC.org and PACER, two crucial platforms for bankruptcy proceedings, ensuring that all necessary data is easily accessible.
Pros and cons
Pros:
- Includes a unique notice management feature
- Integrates with important bankruptcy platforms like NDC.org and PACER
- Specializes in bankruptcy case management
Cons:
- Might be specialized to a fault for firms with a broader legal focus
- Lack of broader legal practice management features
- Pricing is on an annual basis, not monthly
TimeNet Law is a well-rounded law firm accounting software, engineered specifically for Mac users. Its features are optimized for the MacOS environment, providing a smooth, native experience, making it the best choice for small law firms that operate on Mac.
Why I Picked TimeNet Law: In my process of selecting, I found that TimeNet Law excels in catering to Mac users, an often under-served group in law firm accounting software. Its harmonious integration with MacOS and efficient management of invoicing, time tracking, and billing left a strong impression on me. That's why I believe TimeNet Law is the best for Mac-using small law firms.
Standout Features & Integrations:
TimeNet Law shines with features like task-based billing, invoicing, and robust time-tracking mechanisms. Its clean, easy-to-navigate user interface is a boon for MacOS users, as it blends with the overall user experience.
TimeNet Law also supports integrations with popular software like QuickBooks, enhancing its accounting capabilities.
Pros and cons
Pros:
- Integrates with popular accounting software like QuickBooks
- Comprehensive time-tracking and billing features
- Tailored experience for Mac users
Cons:
- Lack of cloud-based solution might limit accessibility
- Limited to MacOS, not suitable for Windows users
- High upfront cost could be a barrier for some small firms
PracticePanther Legal Software is a comprehensive case management solution that offers robust tools for legal practices. It streamlines various aspects of case management, including time tracking, invoicing, client communication, and document management.
Why I Picked PracticePanther Legal Software: I selected PracticePanther Legal Software because it offers an extensive set of tools designed specifically for law firms. This software stands out because of its end-to-end case management capabilities, which make it a single platform for all case-related tasks. It's, for this reason, I believe PracticePanther Legal Software is best suited for law firms seeking a comprehensive case management solution.
Standout Features & Integrations:
PracticePanther's features are extensive. Its case management tools include detailed contact profiles, task tracking, and customizable workflows. On the billing side, it offers time tracking, expense tracking, and comprehensive invoicing tools.
As for integrations, PracticePanther connects with popular platforms like QuickBooks, LawPay, Microsoft Office 365, and Google Workspace.
Pros and cons
Pros:
- Comprehensive billing and time tracking features help manage finances efficiently
- Integrates with widely used platforms, enhancing functionality and flexibility
- Provides extensive case management tools, which simplify case handling
Cons:
- Requires a learning curve to fully understand and utilize all the features
- Some users might find the number of features overwhelming at first
- Monthly cost can be higher for small firms or solo practitioners
Quill is a versatile legal practice management software designed to streamline the operations of law firms. With its robust features covering case management, time recording, billing, and document management, it's tailored to address the unique needs of law practices in the UK.
Why I Picked Quill: I picked Quill because it provides an integrated solution for managing legal cases, which simplifies the operations of law firms. What differentiates Quill is its focus on the UK legal industry, including compliance with UK-specific regulations.
Thus, I deem Quill as the ideal choice for UK-based legal practices seeking a comprehensive management tool.
Standout Features & Integrations:
Quill boasts a number of impressive features such as intuitive case management, secure document storage, and automatic legal forms, all designed to make legal processes more efficient. It also includes a legal accounts system that complies with the SRA Accounts Rules and CLC Accounts Code.
Regarding integrations, Quill works with Microsoft Office, allowing users to generate and store documents directly within the system.
Pros and cons
Pros:
- Provides a comprehensive, all-in-one legal practice management solution
- Integration with Microsoft Office for efficient document management
- UK-specific features and compliance, making it ideal for UK law firms
Cons:
- User interface might feel dated compared to newer software in the market
- Focused on the UK market, potentially limiting its usefulness for non-UK firms
- Could be costly for smaller law firms due to the required base fee
Other Small Law Firm Accounting Software
Below is a list of additional small law firm accounting software that I shortlisted, but did not make it to the top 10. Definitely worth checking them out.
- ZenCase
Best for simplified case management
- FreshBooks
Best for quick and professional invoicing
- CARET Legal
Good for intuitive case management with integrated analytics
- Xero
Good for law firms wanting a robust accounting solution
- Case Master Pro
Good for integrated accounting and case management
- SILQ
Good for Australian legal practices needing local compliance
- Osprey Approach
Good for end-to-end legal practice management in the cloud
- Law Ruler Software
Good for automating lead intake and client relationship management
- Orion
Good for providing complete financial management in legal practices
- Time59
Good for independent attorneys needing time tracking and billing
Other Legal Software Reviews
Here are some other popular types of legal software you might be interested in.
Small Law Firm Accounting Software Selection Criteria
Selecting small law firm accounting software involves evaluating functionality and meeting specific use cases that matter most. For legal billing practices, I evaluate criteria relate to specific software buyer needs and pain points. I've personally tried and researched these tools.
Core Small Law Firm Accounting Software Functionality - 25% of total weighting score:
- Legal billing tools
- Trust accounting
- Expense tracking
- Financial reporting
- Time tracking
Additional Standout Features - 25% of total weighting score:
- Integration with case management systems
- Integrated legal time tracking system
- Customizable reporting
- Mobile access
- Automated reminders for overdue invoices
- Client portals for invoice review and payment
Usability - 10% of total weighting score:
- Intuitive interface design
- Drag-and-drop functionality for scheduling
- Easy navigation and minimal clicks to perform tasks
- Customizable dashboards
- Role-based access that's easy to configure
Onboarding - 10% of total weighting score:
- Availability of training videos
- Interactive product tours
- Templates for quick setup
- Chatbots for instant support
- Webinars for in-depth training
Customer Support - 10% of total weighting score:
- 24/7 support availability
- Multiple support channels (phone, email, chat)
- Knowledge base and FAQs
- Response time and resolution efficiency
- Personalized support options
Value For Money - 10% of total weighting score:
- Transparent pricing models
- Cost vs. feature set
- Scalability of pricing plans
- Free trial or demo availability
- Discounts for long-term commitments
Customer Reviews - 10% of total weighting score:
- Overall satisfaction ratings
- Specific feedback on ease of use
- Comments on customer support quality
- Reviews on feature effectiveness
- Testimonials on value for money
Trends for Small Law Firm Accounting Software in 2024
In 2024, several key trends are shaping the way these firms manage their finances and operations.
Integration with Other Legal Software
One significant trend is the integration of accounting software with other legal management tools. This integration combines document management, case management, and e-discovery tools into a comprehensive platform. This trend is important because it enhances efficiency and allows law firms to manage all aspects of their operations from a single interface.
Increased Use of AI and Automation
Artificial intelligence (AI) and automation are transforming accounting software for lawyers. AI-powered tools can perform complex financial analyses and provide insights that would be difficult for humans to achieve. Automation reduces the need for manual data entry and billing tasks, freeing up lawyers' time for more valuable activities. This trend is crucial as it boosts efficiency and accuracy in financial management.
Cloud-Based Accounting Software
Cloud-based accounting software is becoming the norm, offering real-time access to financial data, automatic updates, and improved data security. This trend is particularly important for small law firms as it eliminates the need for expensive hardware and software infrastructure, making it an affordable and scalable option.
Mobile Accounting Software
The use of mobile devices in the legal industry is on the rise, and mobile accounting software allows law firms to manage their finances on the go. This trend is significant because it provides real-time access to financial data and improves communication with clients, enhancing transparency and trust.
Focus on Data Security
With the increasing use of cloud-based solutions, data security is a major concern. Law firms are prioritizing robust data security protocols to protect client information from cyber threats. This trend is essential as it ensures the confidentiality and integrity of sensitive financial data.
The trends in small law firm accounting software for 2024 are geared towards enhancing efficiency, security, and client communication through advanced technologies and integrations.
Features Of Small Law Firm Accounting Software
When choosing accounting software for a small law firm, it's important to consider the specific needs and challenges that come with managing legal finances. The right software can streamline operations, ensure compliance, and ultimately contribute to the firm's success. Here are the most important features to look for in small law firm accounting software:
- Trust Accounting: This feature ensures that client funds are managed separately from the firm's funds, which is crucial for compliance with legal regulations.
- Time Tracking: Accurate time tracking helps in billing clients correctly and ensures that no billable hours are lost.
- Expense Tracking: Keeping track of expenses allows for better financial management and helps in identifying areas where costs can be reduced.
- Invoicing: Automated invoicing saves time and reduces errors, ensuring that clients are billed promptly and accurately.
- Financial Reporting: Detailed financial reports provide insights into the firm's financial health, aiding in strategic decision-making.
- Integration with Case Management Software: Seamless integration with case management software ensures that all financial data is in one place, making it easier to manage.
- Client Portal: A client portal allows clients to view their invoices and make payments online, improving client satisfaction and speeding up the payment process.
- Compliance Management: This feature helps ensure that the firm complies with all relevant financial regulations, reducing the risk of penalties.
- Scalability: The software should be able to grow with the firm, accommodating more clients and cases as the firm expands.
- User-Friendly Interface: A user-friendly interface makes it easier for staff to use the software, reducing the learning curve and increasing productivity.
Choosing the right accounting software for a small law firm can make a significant difference in the firm's efficiency and compliance. By focusing on these key features, you can ensure that your firm is well-equipped to handle its financial management needs effectively.
Benefits Of Small Law Firm Accounting Software
Small law firms face unique challenges in managing their finances, from tracking billable hours to ensuring compliance with trust accounting regulations. Below are five primary benefits of small law firm accounting software for users and organizations.
- Improved Cash Flow Management Legal accounting software provides a clear, real-time picture of the firm’s financial data, helping to better manage and improve cash flow. This allows firms to monitor their financial health at a glance and make more informed business decisions.
- Time Savings on Data Entry By automating data entry tasks, legal accounting software reduces the time spent on manual data entry and minimizes the risk of human error. This ensures that financial records are accurate and up-to-date, freeing up time for more critical tasks.
- Automated Payroll Processing Payroll can be a time-consuming task, but legal accounting software automates this process, ensuring timely and accurate payroll management. This not only saves time but also ensures that payroll records are consistently accurate.
- Accurate Financial Records Maintaining accurate financial records is crucial for compliance and business decision-making. Legal accounting software ensures that all financial data is processed correctly, making it easier to keep accurate records and stay compliant with applicable ethics rules.
- Enhanced Financial Reporting Generating financial reports manually can be cumbersome and time-consuming. Legal accounting software allows for quick and easy production of detailed financial reports, providing insights that help in making data-driven business decisions.
Implementing small law firm accounting software can transform the way a firm manages its finances, offering significant time savings, improved accuracy, and better financial oversight.
Costs And Pricing Of Small Law Firm Accounting Software
This section provides an estimate of average small law firm accounting software plans and costs. The pricing and features vary based on the plan type and the specific needs of the law firm.
| Plan Type | Average Price | Common Features |
|---|---|---|
| Free Plan | $0 | Basic invoicing, time tracking, limited support, basic reporting |
| Personal Plan | $39 - $49 per month | Time and expense tracking, basic billing, document storage, email integrations |
| Business Plan | $79 - $129 per month | Advanced billing, client portal, document templates, court calendaring, integrations |
| Enterprise Plan | $139 - $159 per month | Full suite including client intake, advanced reporting, unlimited e-signatures, priority support |
People Also Ask
How can legal accounting software improve my law firm's financial management?
Legal accounting software enhances a law firm’s financial management by automating and streamlining various accounting processes. This includes accurate time tracking, automated billing and invoicing, and efficient management of client trust accounts. By reducing manual data entry and minimizing errors, the software ensures compliance with legal standards and improves overall financial accuracy. Additionally, it provides detailed financial reports and analytics, enabling better-informed, data-driven decision-making.
If you are looking for ways to improve financial management, I would also recommend investing in legal invoice review software, which scans your invoices for common efforts on your behalf.
Is it worth investing in legal accounting software for a small firm?
Yes, investing in legal accounting software is beneficial for law firms of all sizes, including small firms. The right software can increase the efficiency of accounting processes, reduce administrative burdens, and ensure compliance with legal standards. Look for software that offers scalability, flexible plans, and the ability to accommodate growth, ensuring it remains useful as your firm expands.
How can I ensure compliance with trust accounting regulations using legal accounting software?
Legal accounting software helps ensure compliance with trust accounting regulations by providing features such as three-way trust account reconciliation, automated tracking of deposits and withdrawals, and detailed reporting. Software like Clio Accounting connects directly to trust account bank feeds, helping firms avoid common trust accounting errors and stay compliant with legal standards. Regular audits and compliance checks are also essential to maintain accuracy and transparency.
What is the cheapest small law firm accounting software?
As of my latest research, the least expensive option on the list is Time59, which starts at around $19.95 per user per month.
How can financial reporting and analytics in legal accounting software aid in decision-making?
Financial reporting and analytics in legal accounting software provide detailed insights into a firm’s financial performance, including metrics like billable vs. non-billable hours, income, expenses, and profitability. These reports help identify financial trends, forecast expenses, and make informed budgeting and strategic planning decisions. Customizable reports allow firms to focus on the most relevant data, enabling data-driven decision-making that supports growth and financial health.
Are there any free small law firm accounting software options?
While many small law firm accounting software tools offer free trials or demo versions, completely free options are rare in this sector due to the specialized nature of the tools. However, some vendors may offer a very basic free version of their tool with limited features.
Can small law firm accounting software handle UTBMS legal billing codes?
Yes, many small law firm accounting software solutions support UTBMS legal billing codes. This feature helps small firms streamline billing, improve accuracy, and meet client requirements by categorizing tasks and expenses consistently.
Other Small Law Firm Software Reviewed
Here are some other tools you may need if you own or manage a small law firm.
The Takeaway
The selection of small law firm accounting software requires careful consideration of your firm's specific needs and budget. All the software options mentioned offer different features and functionalities that can cater to various aspects of law firm accounting.
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