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Why Your Law Firm Needs Legal Accounting Software That Works For You

Why Your Law Firm Needs Legal Accounting Software That Works For You

Monday 8th June 2020

Optimising all your processes is what makes any business productive and efficient. As a law firm, you also need to optimise your accounting process because you need to know where the money is being spent and how much is coming in. Keeping a check on this can be extremely time-consuming, especially for a law firm. This is why you need updated legal accounting software so everything is handled effectively.

Here are a few reasons why your law firm needs legal accounting software.

Time Tracking
If you have more than a few clients this process can get extremely tedious and time-consuming. It can also have many errors that you may easily overlook.
This is why you need software that accurately tracks time so you can bill your clients accurately and effectively. If you are not utilising this then you can overcharge clients which can lead to your reputation being damaged.
Your law firm has specific needs and you need legal software that accurately meets those needs.

Expense Tracking
As a law firm, you need to know where your money is going. This is because in the legal world, there are constant expenses on the behalf of the client and you need to maintain a precise record of them so you can charge them accurately.
Having various invoices or recording them in a ledger can be damaging and time-consuming especially if you have many clients. It has more chances of error and this can either understate or overstate your expenses.
Legal accounting software will solve all those problems because it will track your expenses for you so you can have accurate data at your fingertips!

Invoicing
Invoicing clients accurately is also an important part of your law firm. You need to have an effective system that can invoice clients with all the data already recorded. All you will have to do is click a few buttons and the billing process will be done within a few minutes!
Legal accounting software will also send an invoice with the branding of your law firm making it look professional. Another advantage of this is that you can keep a track of clients who still owe your firm money and you can follow up with reminders through the software.
Reporting

You need to review the financial aspect of your law firm to improve it and see problem areas. You need legal accounting software so that you can have reports on:
• Accounts receivables
• Expenses
• Realisation
• Billing practices

These will help you judge the profitability of your business and you can then come up with new ways to bring in more revenue. It is also a good way to keep track of where your money is going so you can optimise your expenses and fix problem areas within your law firm.
Final Words

Legal accounting software is just as crucial as any other aspect of your business. If you are looking to outsource your accounting service and need up-to-date software that reduces the burden of your work then hire LBM's Accounting Services. We provide an extensive service so you don't have to do anything related to accounting. Contact us now to find out more!