Key takeaways
The best law firm accounting software options provide financial tools specifically for the legal industry.
Key features of law firm accounting software include trust accounting, billing, and reporting features.
When choosing accounting software, law firms will want to focus on solutions with features that directly speak to the firm’s needs.
Managing your law firm’s finances is now much easier with legal accounting solutions that make processes less time-consuming and complex.
According to our 2025 Legal Industry Report, the majority (93%) of respondents reported saving time using accounting software. It also revealed that law firms using trust accounting software save up to 15 hours a month.
In this guide, we’ll highlight some of the best accounting software solutions for law firms. We also discuss what to look for in accounting software and how to choose the right solution for your law firm.
What is law firm accounting software?
Software for law firm accounting is a specialized solution that provides financial tools that adhere to the legal accounting guidelines set by state bar associations.
Additionally, many types of accounting software for lawyers integrate with payment providers and include other features that help simplify financial processes.
Law firm accounting software has many tools that are tailored to the needs of attorneys. Common features include:
Built-in trust accounting support
Budgeting and expense management support
Time tracking
Invoicing and billing
Real-time financial data and analytics
Integration capabilities with popular third-party solutions
Best law firm accounting software of 2026
When choosing the right accounting software for your firm, you’ll find several strong options. Depending on the size and needs of your firm, some solutions may be a better fit than others.
Below are six of the best accounting software solutions for lawyers in 2026.
1. 8am™ MyCase
Best for: Growing law firms that want a single platform integrating practice management, billing, and client communication solutions
MyCase legal accounting software offers a suite of analytics, workflows, and tools that simplify accounting and financial administration. With features like transaction matching and automated legal invoicing, your firm can save on time and admin costs.
The platform’s powerful financial analytics and real-time dashboard monitoring provide robust reporting options to help you make strategic decisions in real time.
MyCase also offers a diverse range of tools and features to serve the needs of your law firm:
Built-in trust accounting: MyCase helps law firms remain IOLTA compliant by maintaining detailed and up-to-date financial records of each client and case. Our automated three-way trust reconciliation feature automatically matches deposits to specific transactions, helping you comply with state bar requirements.
Uncompromising security: You can protect your clients’ and your firm’s sensitive data with SSL and AES encryption. With unlimited storage capacity, your firm can safely store all of your information off-site.
Smarter budgeting and expense management: MyCase Smart Spend provides real-time data of every transaction your firm makes, allowing you to monitor spending and ensure you remain within your forecasted budget.
Advanced legal financial reporting: The solution allows you to create custom analytics reports, pulling information from time and expense tracking, electronic payment reports, and detailed time tracking.
Integration with 8am™ LawPay: Improve payments and accounts receivable by combining MyCase practice management tools with LawPay payment solutions.
Next-day payment receipt: Enjoy next-day access to funds from credit card, debit card, and eCheck payments.
Learn how MyCase and LawPay work together
2. CosmoLex
Best for: Solo or small firms that want a single platform rather than having separate accounting and practice management software
CosmoLex is an end-to-end legal software solution that includes legal accounting capabilities. It helps law firms easily incorporate client engagement, accounting, billing, and firm management solutions into their workflow.
This accounting software comes automatically bundled in its platform. While this approach helps prevent data siloing issues, it may be cost-prohibitive for some firms that don’t need accounting available to all team members.
Cosmolex key features:
Trust accounting: CosmoLex offers tools to complete a three-way trust accounting reconciliation, but you won’t be able to fully automate this process.
Financial reporting: The software supports real-time data updates that inform attorneys of their firm's financial health.
Time tracking and billing: Unite your firm’s time tracking, reporting, and billing into one place.
Learn how CosmoLex integrates with LawPay
3. Clio
Best for: Firms of any size needing an accounting software that is scalable and integrates well with third-party software
Clio is a cloud-based software offering accounting and financial tools. Its offerings include time and expense tracking, billing, invoicing, and trust account features. It supports integrations with other Clio offerings, as well as with third-party providers for firms with more complex needs.
Clio’s key features:
Trust account workflows: Clio accounting software supports processes required for trust accounting, like operating and trust account reconciliation.
Integration capabilities: Clio accounting software integrates with other Clio solutions and third-party providers, including Xerox and QuickBooks, for firms that need more robust and automated features.
Digital payment processing: Clio processes eCheck payments in up to five days and credit card payments in up to three days. However, there are no client financing options available in the software.
Learn how Clio integrates with LawPay
4. Centerbase
Best for: Mid-sized firms that need a scalable solution that includes flexible and customizable workflows.
Centerbase combines legal accounting solutions with online banking offerings. With customizable workflows and dashboards tailored to your firm’s needs, Centerbase is designed for flexibility.
The solution’s automation capabilities also help you simplify and accelerate time tracking, billing, and compliance tasks.
Centerbase’s key features:
Pre-built reporting features: Rather than manually constructing accounting reports, Centerbase includes pre-built budget, profit and loss, and trial balance reports.
Customizable workflows: You can automate accounting and financial workflows and processes.
Real-time financial dashboards: Centerbase provides real-time data and analytics relating to work in progress, collections, and firm profitability.
Learn how Centerbase integrates with LawPay
5. Actionstep
Best for: Mid-sized law firms needing a cloud-based solution that emphasizes automating and customizing workflows
Actionstep (formerly Soluno) accounting software is cloud-based and integrates trust, client, and office accounting into a single platform.
This solution focuses on automating workflows and processes, from documentation creation to management of billing cycles. The integrated approach helps speed up more manual processes. For example, Actionstep uses matter-based billing to quickly create billing reports and invoices.
Actionstep’s key features:
Automated processes: Actionstep enables lawyers to automate simple or repetitive accounting and financial tasks.
Financial reporting tools: Understand the financial health of your law firm in real time with standardized and customizable reporting options.
Trust accounting features: Actionstep’s trust accounting tools include real-time tracking of client funds and automated compliance checks.
6. CARET
Best for: Law firms that want a single solution without relying on third-party offerings
CARET (formerly Zola Suite) integrates accounting software with practice management, timekeeping, and billing solutions. While other software focuses on seamless integration, CARET is designed to have all tools in its native software. By keeping everything inside CARET’s software, law firms can simplify workflows and keep information in one spot.
CARET’s key features:
Native accounting and financial tools: Built-in ledger, trust accounting, and other tools eliminate the need to integrate with other third parties.
Comprehensive billing features: CARET simplifies billing operations for law firms with tools including split billing, bulk billing, and pre-billing.
Monitor key performance metrics: CARET makes it easy for law firms to keep track of their key performance indicators (KPIs), including profit margins, realization rates, and billable hours.
What are the key features of good law firm accounting software?
Key features of good law firm accounting software include trust account management, time and expense tracking, billing management, and financial reporting.
Many general accounting solutions are not built to integrate with legal processes. The software cannot follow financial rules set by state bar associations. Without careful oversight, general accounting solutions may add complexity to record-keeping and maintaining compliance.
When looking for legal accounting software, it is best to look at the features that your law firm needs. Here are some key features to look out for in a great legal accounting solution:
Feature | Description |
Time tracking | Time tracking features help ensure that billable hours are logged correctly against the client’s retainer for simplified invoicing. |
Online payment integration | Modern payment solutions offer multiple ways to accept payments, including by credit card, third-party financing providers, and ACH payments. Integrating payments with your accounting software helps reduce operational complexity by automating the reconciliation and record-tracking processes for accounting. |
Trust account management | Trust account management software helps ensure client trust funds remain separate from your law firm’s operating account. Solutions like MyCase offer automatic three-way trust and bank reconciliations. These features simplify the trust accounting process and provide greater peace of mind that you comply with state bar requirements. |
Compliance features | Built-in payment management features ensure that any unearned client payments are automatically put in a client trust and that the fees to maintain that account are handled correctly. To maintain IOLTA compliance, it’s important to avoid commingling unearned and earned funds. |
Billing and A/R management | Automated accounts receivable removes the manual work of tracking invoices, sending payment reminders to clients, and collecting payments. These features help you get paid faster and can drastically improve the client experience. |
Financial reporting tools | Comprehensive financial reporting tools for law firms provide an accurate, real-time view of client deposits, transactions, and other expenses. Greater insight into spending and your firm’s cash flow will help you identify overspending and opportunities to strengthen the budget. |
Client and/or case management | Client and case management tools can help automate various tasks, such as intake, documentation, data entry, collections, and communication. |
Mileage tracking | Accurate mileage tracking ensures your law firm accurately reimburses your attorneys and staff for business travel. Proper tracking and documentation provide greater IRS audit protection. |
Contact management | Effective contact management tools help your firm create a system for organizing records of key individuals and partners. Accurate contact management means the billing and invoicing systems always have up-to-date information, thereby reducing errors and saving time. |
Cloud capabilities | Cloud-based software is crucial for law firms with geographically diverse teams. For accounting software, cloud capabilities ensure everyone in your firm can access real-time financial data at any time and from any location. |
Law firm accounting software can be standalone or built into an existing tool. In our 2025 Legal Industry Report, we learned that most law firms use legal-specific accounting software that’s integrated into their practice management platform.
Why should law firms use accounting software?
Law firms can consider using accounting software to improve billing accuracy, gain access to detailed financial reporting, and automate financial processes.
Because of the unique regulatory challenges law firms face, investing in legal-specific accounting software can reduce compliance risks and save valuable time. Additional benefits of accounting software include:
Improves cash flow: Accounting software helps optimize your billing processes, bookkeeping, and client communication to make your firm more efficient and ensure consistent payment.
Boosts productivity: A legal accounting solution can significantly improve your operational efficiency by streamlining bookkeeping, taxes, payroll, and more without sacrificing accuracy.
Lowers compliance risk: Dedicated legal accounting solutions provide trust management features that help your firm adhere to bar and IOLTA compliance rules.
Improves client relationships: Having a more organized accounting system can make it easier to quickly create invoices and answer client questions. With reduced friction and a predictable billing process, you can build client trust and reduce the risk of payment disputes.
Drives better decision-making: Customizable dashboards and reports let you visualize and hone in on the areas that matter most to you. A clear and comprehensive view of your firm’s performance is vital to making meaningful long-term decisions.
How to choose the best law firm accounting software
Choosing a new accounting software is a major investment for your firm. In addition to the financial cost, there is a major time investment your team will make to train and become familiar with the new software.
To help you make the right decision for your firm, here are a few aspects to consider when evaluating law firm accounting software:
Firm size: Some accounting solutions come with a high cost or charge a flat fee for all users, regardless of whether your entire firm needs access to all features. Look for a platform that balances your firm’s needs, features, and price.
Your firm’s goals: Prioritize solutions that help your firm reach its short and long-term goals. If, for example, your firm’s goal is to speed up the reconciliation process, it may be helpful to find a solution with fully automated three-way trust reconciliation.
Security: Ensure any solution you consider has multiple layers of security and encryption to protect sensitive data.
Reliable data: Research how the solution pulls, calculates, and analyzes data to ensure your team can efficiently use it. Ideally, the tool will do the majority of the heavy lifting so your team can spend minimal time on accounting tasks.
Ongoing support and updates: Cloud-based software means you can use your solution from anywhere and always get updates for the latest features. If they offer a demo, you can ask the representative to walk through more complex features.
Flexible integrations: Integrations give your firm more flexibility to make changes or embrace new technologies as they arise.
Discover the best law firm accounting software with LawPay and MyCase
Modernizing your accounting processes is an important step to meeting today’s client expectations and improving your firm's profitability. With the best legal accounting software, your firm can save time, mitigate compliance risks, increase revenue, and enhance client satisfaction.
If your law firm is looking to improve its financial management, MyCase and LawPay offer a holistic billing and case management platform. Using a unified system can provide your law firm with improved efficiency and better data management, all while offering continuous support as your firm scales.
Our innovative software has built-in legal accounting features, best-in-class payment processing, and case management features. Sign up today to see how LawPay and MyCase can benefit your firm.
Schedule a demo to see what LawPay can offer your firm.
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About the author
The LawPay Team