Best Legal Accounting Software of 2026

Legal accounting software is an essential part of an attorney’s practice management system, and frequently revolves around projects and time logs. Because law firms often bill as a function of time, work time and schedules should be highly organized to produce detailed reports for the inquisitive client.

Time can be broken down into date, activity and billable or nonbillable criteria. Goals for total annual billable hours can be recorded and compared to the actual hours worked for evaluation. In addition, software can arrange invoices based on the time logged.

We wrote this guide to help those in the legal field evaluate accounting software. We’ll explain the features and functionality to be on the lookout for, as well as best practices for evaluating systems.

Here's what we'll cover:

• What is legal and law firm accounting software?

• What are common features of legal and law firm accounting software?

• What should you consider while evaluating legal and law firm accounting software?

• What should you consider before purchasing legal and law firm accounting software?

What is legal and law firm accounting software?

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 a legal-specific accounting software can help them remain compliant with laws designed to safeguard private client information.

Firms can purchase legal accounting software in the following ways:

Best-of-breed, or standalone. Law firms may choose to purchase a standalone accounting system if they are currently using case management software that doesn’t have an accounting module, or if their existing billing and invoicing solution doesn’t have all the accounting features they need to accurately track their bookkeeping.

Offered in suite, as part of a larger practice management system. The accounting module is bundled with other business functions, such as the client portal, document management system and marketing. Data transfers seamlessly between applications, which helps save time and reduce errors due to duplicate data entry.

On-premise, hosted on-site on the law firm’s internal servers. Usually sold via perpetual license, the law firm owns the rights to the software. They are charged a one-time, upfront fee and are responsible for supporting and maintaining the software on their own. Firms can make an additional purchase of software updates and upgrades from the vendor as needed.

Cloud-based, hosted remotely on the vendor’s servers. Typically, cloud-based products are sold via subscription licensing, which means the firm pays a recurring monthly or annual fee to use the software for that amount of time. The subscription fee includes the cost for vendor-supplied support, maintenance and automatic updates.

What are common features of legal and law firm accounting software?

While capabilities vary, legal accounting systems typically include the following:

What should you consider while evaluating legal and law firm accounting software?

Legal accounting software should be able to record billing and time information in different ways for flexible application. Although law work is often based on time billing, the right accounting software will provide a range of pay options, as listed above. A good software package can also come with abilities to report for multiple clients at different rates and organize the information according to user preferences.

When evaluating these systems, buyers should consider the following:

• How deep are the schedule reporting abilities?

• Does it include appropriate payment arrangements?

• Is invoice generation linked to payment records?

• Does it provide adequate project sorting, tracking and progress features?

What should you consider before purchasing legal and law firm accounting software?

Law firms should keep the following considerations in mind as they evaluate legal accounting software:

Integration: In a recent report, “integration with other systems” was cited as a major challenge by nearly 30 percent of legal software users surveyed. To avoid a similar issue, firms can purchase legal accounting software in-suite, as part of a larger practice management solution. Alternatively, when purchasing a standalone accounting system, firms are encouraged to demo products prior to purchase to determine if they are compatible with existing business software.

Mobility: Even in the legal industry, telecommuting and working remotely is gaining in popularity. Mobile applications allow attorneys to track their time and view client information from any location, on any device with a mobile connection. As billable time ties directly to the accounting system, check with vendors to see how popular their mobile apps are and compare uptime, speed etc.

Security: Since lawyers deal with sensitive and often confidential information, ensure your accounting software has advanced security controls to restrict sensitive information to only the people who need it.