Legal professionals struggling with accounting is not something which is new, keeping track of all financial transactions and generating financial reports in your law firm is not what you actually signed up for. According to a report by Gartner, lawyers spend as much as 40% of their time doing administrative work which can be automated completely. Getting your hands on a solution that can streamline your accounting process is crucial for your law firm. Accounting is a vital part of any law firm, not just does it give clear insights but gives you more clarity for budgeting and allocating budgets towards respective parts of your practice.
Manual accounting is time-consuming and too frustrating and the chances of mistakes are also more. Adapting a tool to harness this challenge will make your firm’s financial operations smoother, more efficient, and easier.
Adapting to free tools is especially valuable. There is countless legal accounting software that is available at no cost for a certain period of time and some are even available free of cost. Let’s directly jump to what legal accounting software, what are the free options available for legal professionals and law firms, and what features you should consider while looking for law firm accounting software.
What Is Legal Accounting Software & Why Every Law Firm Needs It?
Legal accounting software can help streamline the billing and invoicing process and provide law firms with valuable insight into their cash flow.
Additionally, as firms deal with sensitive client data, using legal-specific accounting software can help them remain compliant with laws designed to safeguard private client information.
Features that accounting software offers to boost up your accounting processare?
- Time Tracking
In accounting software for lawyers and law firms, you can also track your time and your billable hours. A valuable solution will not just provide accounting features, but also time tracking features. With CaseFox legal billing software, you can track your time, including billable and non-billable hours, and get reports of your activity.
- Client portal
With a seamless and easy-to-use client portal, lawyers and law firms can easily get a hold of client communication, and check for payments, clients can easily view their payment history and stay in the loop with their attorneys all the time.
- Billing & Invoicing
A good solution will give you features where you can also generate invoices and create a streamlined process for billing and payments. Features like bulk invoice generator, you can generate hundreds of invoices with just one click.
- Contact & Client Management
Client relationships are vital for a law firm, a quality legal accounting solution will contain contact management capabilities, recording information for clients and related parties.
- Trust Accounting
Managing a client’s funds, whether in real estate, legal trust accounts, family/estate planning, bankruptcy, or any other trust situation, brings an extra level of complexity. Trust accounting software will include features to support managing multiple financial accounts, tracking funds, and credit and debit allocation.
- Financial Reporting
Generate reports on trust ledgers, client payment history, attorney productivity, and more. Filter Data by practice area, case file, attorney, etc. and gain insight into business trends.
- ILOTA Accounting and LEDES Billing
With accounting software law firms can create professional custom invoices for their practice with pre-made template features. Accounting software also provides LEDES invoicing and UTBMS codes for smooth billing functioning.
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- Exceptional Security
Having solutions that are not good enough, and can’t provide your law firm exceptional security, will become a matter of concern later on. A good accounting management system should provide features that can secure mishappenings like loss of information, better security from cyber-attacks, and role-based access.
Free Legal Software Review: Top 5 Low-Cost Options
Xero offers an easy-to-use online accounting system for lawyers with exceptional reviews and an easy interface. Xero is one of the top-rated accounting software liked by many businesses and professionals. The solution can be accessed with any device with an internet connection on it, with Xero’s robust accounting features, small businesses can view their cash flows, transactions, and account details from any location. Bank transactions are all automatically imported and coded.
Xero provides unlimited user support and integration with a variety of systems, including ADP, Bill.com, and Vend. The solution comes with a 30-day free trial period for product testing and feature evaluation. When paired with practice management software, Xero is proven to be one of the best accounting software for law firms.
QuickBooks Online is an accounting solution designed for various industries such as health care, the legal sector, and other such industries. It offers a web-based accounting solution that controls all aspects of the accounting process and the financial side.
The software can be used for multiple reasons such as payroll, invoice management, booking keeping, etc. Quickbooks offers a free trial to lawyers, their applications allow you to record client payments and execute other crucial processes of financial management.
TrustBooks is a cloud-based software that offers a unified dashboard to help legal professionals and law firms to manage accounting operations seamlessly, The application provides a three-way trust reconciliation summary including details from the bank balance, trust ledgers, and client ledgers.
TrustBooks offers integration with third-party applications such as CaseFox, Clio, and LawPay. The best it’s when you pair TrustBooks with case management software, it’s easier to import client details, perform reconciliations and generate reports.
ZohoBooks is a robust accounting solution for law firms tailored to cater small and mid-size firms. Its free plan is restricted to organizations generating less than $50,000 in annual revenue but if you are eligible for the plan then the features are unlimited. The solution has end-to-end accounting features to handle the more monotonous, frustrating parts of this side of your practice— including invoicing and raising sales orders. The program also has a client portal to help you seamlessly connect with your customers.
Wave is one of the more tested and used accounting software, it’s an accessible and versatile program that doesn’t need any training for use. The entire suite of accounting features is available for free, including unlimited income and expense tracking, the ability to run multiple businesses from a single account, and unlimited bank and credit card connections. One of the drawbacks is that you can’t track accounts payable.
CaseFox offers integration with most accounting solutions for law firms like Xero and QuickBooks. CaseFox also provides specialized features for trust accounting management and gives you advanced insight into the financial status of your law firm. We offer a free lifetime subscription to our customers with limited users. It also gives the ability to view your firm’s progress, your billing and invoice activities, reporting, and analysis.
The benefits of using free software are endless, you’ll save time and money, and you’ll have a more clear picture of your firm’s productivity and efficiency.
Additional resources will also help lawyers to be more efficient and client-centric as they would not have to spend countless hours in accounting. You take your accounting to the next level just by adapting to your accounting software that fits your law firms, additionally if paired with leading practice management software like CaseFox you can seamlessly manage all your law firm operations with ease.