Law business accounting is unique. In addition to basic accounting responsibilities, law firms, lawyers and attorneys must also maintain and reconcile Interest on Lawyers Trust Accounts (IOLTA), track and bill time spent on client work and produce easy-to-understand invoices. This is why it often makes sense for small law firms to choose accounting software specifically designed for law businesses.
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Here are our top recommendations for legal accounting software options.
Best Law Firm Accounting Software
Product | Promotion | Learn more | ||
|---|---|---|---|---|
QuickBooks Online Learn more on QuickBooks Online's secure website | 5.0/5 Best for General accounting software with law firm software integrations | $35/month Additional pricing tiers (per month): $65, $99, $235. | 50% off for first three months or free 30-day trial. | Learn more on QuickBooks Online's secure website |
Xero Learn more on Xero's secure website | 5.0/5 Best for General accounting software with law firm software integrations | $15/month Additional pricing tiers (per month): $47, $80. | 30-day free trial or monthly discount (terms vary). | Learn more on Xero's secure website |
FreshBooks Learn more on FreshBooks' secure website | 4.5/5 Best for Legal accounting software for sole practitioners | $19/month Additional pricing tiers (per month): $33, $60, custom. | 30-day free trial or monthly discount (terms vary). | Learn more on FreshBooks' secure website |
LeanLaw | Best for Overall law firm accounting software | $50/month Additional pricing tiers per user (per month): $65. | 14-day free trial | |
Clio | Best for Scalable law firm accounting software | $49/month Additional pricing tiers per user (per month): $89, $119, $149. | 7-day free trial | |
PCLaw | Best for Desktop law firm accounting software | N/A Quote-based. | N/A |
Our picks for
General accounting software with law firm software integrations
QuickBooks Online
Learn more
on QuickBooks Online's secure website
Starting at
$35/month
Additional pricing tiers (per month): $65, $99, $235.
Promotion
50% off
for first three months or free 30-day trial.
QuickBooks Online is an industry leader in the accounting field, thanks to its strong feature set, scalability and ability to accommodate small businesses with more complex financial needs. With millions of users worldwide, your accountant will likely be familiar with it.
Pros
- Easy to share information with your accountant and to find QuickBooks experts and online resources if needed.
- More than 750 app integrations.
- Robust feature set includes record-keeping, reporting, invoicing and inventory management, plus a capable mobile app.
- Chat and phone support available Monday through Saturday in all plans.
Cons
- Expensive compared with the competition.
- Frequent price increases and a tendency toward upselling.
- Limited account users with each plan.
Xero
Learn more
on Xero's secure website
Starting at
$15/month
Additional pricing tiers (per month): $47, $80.
Promotion
30-day free trial
or monthly discount (terms vary).
Xero allows unlimited users at every subscription tier, a valuable feature for businesses where several users may need at least limited access to the system to run reports or analyze performance. In terms of functionality and features, Xero is one of QuickBooks Online’s biggest competitors and has a more customizable dashboard that lets each user rearrange or hide panels.
Pros
- Unlimited users in all pricing plans.
- Integrates with more than 1,000 third-party apps.
- Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc.
- Simple layout and easy to use.
Cons
- No phone number for customer support listed.
- Entry-level plan limits bills and invoices to five and 20 per month, respectively.
Our pick for
Legal accounting software for sole practitioners
FreshBooks
Learn more
on FreshBooks' secure website
Starting at
$19/month
Additional pricing tiers (per month): $33, $60, custom.
Promotion
30-day free trial
or monthly discount (terms vary).
FreshBooks is a simple and affordable option for freelancers and very small businesses that don’t require many users and prioritize being able to operate on the go via mobile app. It’s an especially inexpensive choice for those who can work within lower-tier plans’ billable client limits, and all plans include time tracking.
Pros
- Stay in touch with clients through the FreshBooks mobile app and get notified when invoices have been viewed or become overdue.
- Intuitive, customizable invoicing capabilities compete with those of more robust accounting solutions.
- Track time and add billable hours to invoices in all plans.
- Weekday phone support in all plans.
Cons
- Lacks features that quickly growing companies need, like audit trails for accountants to review.
- Highest-tier Select plan only comes with two users (additional users add $11 per month) and lower-tier plans put limits on billable clients.
- Least expensive plan lacks double-entry accounting reports, bank reconciliation and accountant access.
Our pick for
Overall law firm accounting software
LeanLaw
Starting at
$50/month
Additional pricing tiers per user (per month): $65.
Promotion
14-day free trial
LeanLaw is particularly strong on its billing features. It boasts a flexible time tracking feature, which allows you to either run a timer or manually enter your time on whatever device you choose. The software can then auto-generate a customized invoice, meaning you will no longer have to “find time” to bill your clients.
Pros
- Integrated IOLTA accounting.
- Automated matter management.
- Integrates with QuickBooks.
- Accept online credit card and ACH payments.
Cons
- Cost can add up quickly if you require multiple users.
- You need to purchase the more expensive plan to access matter-based accounting and LEDES billing tools.
Our pick for
Scalable law firm accounting software
Clio
Starting at
$49/month
Additional pricing tiers per user (per month): $89, $119, $149.
Promotion
7-day free trial
Clio is a complete practice management software option for law firms of all sizes. In addition to billing, Clio also handles client intake and relationship management, scheduling, document management and many other functions your growing law firm needs.
Pros
- Legal trust accounting, including IOLTA tracking.
- Matter management tools.
- Accounting integrations, including Xero and QuickBooks.
- Accept online payments.
Cons
- Cost can add up quickly if you require multiple users.
- Automation features and integrations aren’t available in the least expensive plan.
Our pick for
Desktop law firm accounting software
PCLaw
Starting at
N/A
Quote-based.
Promotion
N/A
PCLaw is desktop-based practice management software designed specifically for the legal industry. Its billing tools allow various customization options for fees, including the ability to add interest on outstanding balances.
Pros
- Matter management features included.
- Can handle legal trust accounting, including IOLTA.
- Mobile app for iOS and Android with robust time tracking features.
Cons
- Lack of pricing transparency.
NerdWallet’s picks for the best legal accounting software
LeanLaw: Best overall law firm accounting software
Price:
- $50 per user per month for the Core plan.
- $65 per user per month for the Pro plan.
Why we like it: LeanLaw has a simple and transparent pricing structure with two plans, both of which include IOLTA trust accounting capabilities and an integration with QuickBooks Online. The software also enables legal matter accounting, although only in the higher-tier plan. Both plans include a long list of industry-specific features, including time and expense tracking, billing by multiple fee types, invoicing and basic reporting. LeanLaw also includes a one-hour complimentary onboarding session to get you up and running.
Clio: Best scalable law firm accounting software
Price:
- $49 per user per month for the EasyStart plan.
- $89 per user per month for the Essentials plan.
- $119 per user per month for the Advanced plan.
- $149 per user per month for the Complete plan.
Why we like it: Clio is a complete law firm management software solution that includes numerous industry-specific products and features. The software’s capabilities include trust accounting, which meets IOLTA requirements; customizable invoice and billing options; reports and analytics, including a dashboard to visualize key data and insights; time and expense tracking and more. Plus you can choose from a handful of optional add-ons such as Clio’s CRM solution and advanced document automation to scale up as your law firm grows. Clio integrates with a number of external accounting programs, including QuickBooks Online and Xero. It also doesn’t hurt that, according to its website, the software has won the approval of all 50 state bar associations plus more than 40 law societies from around the world.
PCLaw: Best desktop law firm accounting software
Price: Quote-based.
Why we like it: If your practice prefers locally installed accounting software, PCLaw is accounting software for law firms that is backed by the longstanding reputation of LexisNexis. (And if you are interested in a cloud accounting software solution, PCLaw has partnered with LEAP to deliver just that.) PCLaw’s software can assist you with time entry and billing, bank reconciliation, setting and adjusting your fees, schedule management and more. And of course, because this product was designed for legal professions, it can handle matter management and legal trust accounting, including IOLTA.
FreshBooks: Best legal accounting software for sole practitioners
Price:
- $19 per month for the Lite plan.
- $33 per month for the Plus plan.
- $60 per month for the Premium plan.
- Custom pricing for the Select plan.
Why we like it: FreshBooks accounting software is a strong fit for freelance and self-employed professionals. Sole practitioner lawyers and attorneys, in particular, will appreciate the software’s ability to produce custom invoices, automate client payment reminders, manage time tracking, capture expenses, generate key accounting reports and other valuable functions. Although it can be a great solution for your small law office, FreshBooks lacks the matter management and IOLTA accounting abilities that some of the other purpose-built law firm accounting software products on this list have. Therefore, if you choose to use FreshBooks, it would be wise to enlist the help of a bookkeeping service to reconcile your IOLTA accounts and avoid potential malpractice claims. Read our full FreshBooks Accounting review.
QuickBooks Online: Best general accounting software with law firm software integrations
Price:
- $35 per month for the Simple Start plan.
- $65 per month for the Essentials plan.
- $99 per month for the Plus plan.
- $235 per month for the Advanced plan.
Why we like it: As one of the best-known and most prolific accounting software tools on the market, QuickBooks Online, unsurprisingly, can also handle your legal accounting needs. QuickBooks may be right for your practice if you prefer to select proven accounting software that nearly any accountant will be well versed in and that also integrates with well-known law firm management software like LeanLaw and Clio. In this way, you can create a well-rounded accounting and practice management solution for your firm. Read our complete QuickBooks Online review.
Xero: Best general accounting software with law firm software integrations
Price:
- $15 per month for the Early plan.
- $42 per month for the Growing plan.
- $78 per month for the Established plan.
Why we like it: Xero is another well-known, trusted name in accounting software, and it also delivers strongly on all of the general accounting features you would expect. These include automated bank reconciliation, expense tracking, bill paying, invoicing, enabling online payments and many more functions. In addition to a valuable analytics dashboard that helps you easily track your practice’s finances, the software can generate a number of simple and customized reports. And while Xero doesn’t advertise tools designed specifically for legal matter management, you may find its data capture and file management tools sufficient for this function. Xero integrates with Clio and a couple of other law firm applications. Read our Xero Accounting review.
Choose software designed for law firms
Although you could get by with using a general accounting software tool for your law firm, you will most likely want additional software designed specifically for legal practices. An industry-specific software option will help you manage your firm more effectively and efficiently and, particularly in the case of legal trust accounting (especially IOLTA) requirements, will ensure your practice remains compliant with regulations and avoids unnecessary malpractice claims. Software designed intentionally to be used in legal practices will also include tools for matter management and potentially also LEDES billing. Selecting software with these built-in features, or with the ability to directly integrate with third-party software that offers these capabilities, will help your firm remain profitable and free your time to do the important work you do.
Billie Anne Grigg contributed to an earlier version of this article, which was first published on Fundera, a subsidiary of NerdWallet.
Last updated on April 8, 2024
Methodology
NerdWallet independently reviews accounting software products before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company representatives. Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy.
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These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most. We encourage you to research and compare multiple accounting software products before choosing one.
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