How to Choose the Right Accounting Software and Tools for Law

Can accounting software make or break a law firm? Probably not, but why take the chance?

The thing is, there are hundreds (thousands?) of accounting software vendors catering to the legal industry. To make the decision even more difficult, there are no mandatory requirements for critical features, including data security.

We will look at six legal accounting software features that you need to prioritize for your law firm. It’s not an exhaustive list, but if you adapt each to your unique needs you have a pretty good chance of walking away with a software package that is a perfect fit for your firm.

Consider Scalability

Start small – grow big. That’s how most businesses operate, right? Yeah, but there are also plenty of businesses that do it the other way around, like when they’re downsizing for retirement. So, scalability has to go both ways.

Focusing on the up-and-up, you need software that has the capacity for growth. We’re not talking an extra paralegal or two. We’re talking multiple attorneys, secretaries, and interns. Accounting software must support long-term growth, easily coping with increased billing hours, payroll, and invoice tracking.

You might have downsizing forced upon you by financial markets beyond your control; ensure your software can also efficiently cut back.

Prioritize Ease of Use

Remember that, while bamboozling, mastering your banking app doesn’t make you an IT guru. This makes user-friendliness a non-negotiable feature in your accounting software.

Create User X. User X is the hypothetical employee whose technical knowledge matches your grandad. If User X can manage, so can everyone else. If User X can’t manage, you have two options.

Dial back
Choose a software vendor that includes training in its software package.

Option 2 is preferable because dialling back probably means you lose features that you need. Option 2 also supports growth because you want to lift User X, not drag everyone else down.

Ensure Compliance

Have you ever had to take the blame for someone else, a sibling maybe? It’s not the nicest feeling in the world. Unfortunately, accounting software compliance is a bit like that. If the software you buy doesn’t meet all the industry requirements, you’re going to be held accountable.

Law firm-specific accounting software must comply with all legal and regulatory standards, not to mention the industry’s best practices for legal accounting.

It’s your responsibility to verify the vendor’s compliance. Ignorance is unfortunately not a defense (as you well know), so put it at the top of your purchase checklist.

Check Integration Capabilities

Save yourself unnecessary expenses by ensuring the software integrates with your existing systems and includes tools you anticipate using in the future. Like compliance, it’s your responsibility to verify. If you have the tech know-how, that is. Ask your IT guy – or any friend in the IT industry (you know you have at least one) – for advice.

The aim is to make informed decisions that streamline your operations and ensure accuracy in financial management and reporting. In User X-speak, taking people out of the equation and automating functions eliminates human error and saves time for core activities.

Evaluate Security Features

Want to hear some scary news? In 2024, there have been nearly 6, 850 billion data security breaches in the US. Nearly 4,300 billion were in IT services & software. The numbers are too big to truly comprehend, but we know it’s big enough to prioritize in-built data protection and security features in legal accounting software.

Look for compliance with:

ISO 27000 series: ISO 27001 and 27002 cover the creation of Information Security Management Systems (ISMS)
NIST: Categories cover data security, including NIST SP 800-53 and SP 1800 series.
COBIT: Provides various certifications, including Certified Information Security Manager.
HITRUST Common Security Framework: Covers risk analysis and management frameworks.

Assess Customer Support

“Your call is important to us.” Is there a more dreaded response when you call customer support? It’s often enough to make us hang up without even trying. Avoid hours of muzak by choosing a software vendor with reliable and accessible customer support.

Find out about vendor customer services; for example, does the vendor provide initial training and follow-up calls for information? Is there a chatbot to answer basic questions and direct you to human support for more complex queries?

Go with the legal accounting software vendor with customer support services that meet your firm’s needs.

Legal Accounting Software Boxes For Consideration

What would we like you to take from this post? First, your firm is unique. Thanks to advanced software solutions you don’t have to settle for a cookie cutter package. For example, Sage Intacct ERP modules tick all the boxes.

They are scalable
They are customizable
They easily integrate with other systems
They are definitely easy to use
They are industry compliant
They provide customer support for all needs, including those unique to South Africa