Legal accounting can be a complex and time-consuming task, especially if you run a small or medium-sized law firm and don’t have a lot of resources to devote to it. Many firms use QuickBooks, a popular accounting software, to manage their finances.
Despite its widespread use, though, QuickBooks may not be the ideal option for every legal practice.
If you’re looking for a more streamlined solution, consider switching to accounting software that integrates with your legal practice management software.
Reasons to consider switching from QuickBooks to a legal-specific accounting software
Although QuickBooks is a good software option for many businesses, there are several reasons why your law firm might want to make the switch to legal-specific accounting tools that work in tandem with your practice management software.
- Lack of industry-specific features: QuickBooks is a general-purpose accounting tool. As such, it lacks features specific to the legal industry, like trust accounting and automated billing.
- Learning curve: Many attorneys report that QuickBooks has a steeper learning curve than other accounting programs.
- Limited customization: QuickBooks allows for some customization, such as creating custom invoices and reports. Still, it doesn’t offer as much flexibility as other accounting tools specifically designed for the legal industry.
- Data security: When it comes to keeping client information confidential, law firms are under extra pressure. Legal accounting emphasizes security in a way that is tailored to the needs of law firms, unlike QuickBooks.
Could CosmoLex be the better choice for your law firm?
If you’re frustrated with QuickBooks or searching for a tool that better meets the needs of your law firm, you may want to consider another option: CosmoLex. CosmoLex offers a full range of built-in features that help to streamline and improve law firm accounting. Many of these features are missing from industry-agnostic accounting software such as QuickBooks.
Checklist
Year-end Accounting Checklist for Law Firms
It’s important to regularly review and have a deep understanding of your financial health to ensure that errors will be caught and performance can be analyzed. Always knowing the status of your business allows for adequate planning and, if necessary, a change of course before it is too late!
Just take a look at this comparison!
| Feature | QuickBooks | CosmoLex |
| Invoicing and billing | Enables users to generate and deliver customer invoices. Options for payment processing vary. | Provides a greater variety of invoicing and payment processing choices, including online payment gateways. |
| Time and expense tracking | Features some time and expenditure tracking capabilities, but they aren’t calibrated to the unique needs of law firms. | Offers advanced time and expense tracking features, including automation and integration options, designed for how law firms operate. |
| Trust accounting | Lacks specific trust accounting features, requiring law firms to establish cumbersome workflows to ensure compliance. | Designed to meet the legal industry’s stringent trust accounting standards—without extra workflows. |
| Document management | Includes a document management system. | Provides a document management solution tailored to legal firms’ needs and works in tandem with all of CosmoLex’s practice management features. |
| Ease of use | Fairly user-friendly, but certain users may experience a higher learning curve. | Extremely user-friendly and straightforward. |
| Customization | Allows for some customization, such as creating custom invoices and reports. | Provides more comprehensive customization options, including generating invoices and reports with greater flexibility. |
| Scalability | Suitable for businesses of all sizes. | Scalable to grow with your firm’s needs. |
| Data security | Offers some data security features, including secure servers and data encryption. | Protects sensitive client data with secure servers, data encryption, SOC2 compliance, and more. |
Because CosmoLex is a fully integrated solution, optimizing your billing process while streamlining your workflows is simple. Everything you need for exceptional business and trust accounting—and exceptional client service—is built into your legal practice management software.
Best practices for maximizing cash flow in your legal firm
Even the most powerful accounting software won’t do much good if you don’t have solid strategies to manage your billing processes. To improve the financial stability of your firm, try putting these best practices into effect.
- Make it simple for customers to pay. Provide a variety of payment alternatives, including credit cards, payment plans, and incentives for on-time payments.
- Use automated billing and invoicing software to deliver accurate and consistent invoices. This can establish better trust with clients, increasing the likelihood of prompt payment.
- Develop a clear payment policy that outlines your payment conditions. Share these with clients during the intake process and with each invoice so expectations are always transparent.
- Align your payment rules and expectations with your firm’s internal invoicing procedures. This should establish time and expense tracking practices so that no hours go unbilled.
- Monitor your financial metrics. Keeping an eye on your accounts receivable and other financial metrics helps you understand your firm’s financial health and make adjustments as necessary.
How to switch from QuickBooks
If you’re tired of fighting with QuickBooks (or any other accounting software that doesn’t meet your law firm’s needs), CosmoLex can help.
Getting started is straightforward.
Research your options and compare them
Spend some time investigating and comparing the accounting tools you’re interested in. Consider each software’s features, price, interface, and your firm’s specific needs.
Sign up for a free trial
Many legal software companies let you try out their products for free, allowing you to confirm whether you want to buy them. Now’s your chance to find out if CosmoLex is the right fit for your firm!
Set up a new account
Assuming you’ve decided to switch to CosmoLex, you’ll need to sign up for a new account and make a new login.
Transfer your data
Our knowledgeable migration experts can help you import your info from QuickBooks, including details about your clients and finances.
Get to know your new accounting system
Spend some time getting acquainted with what CosmoLex can do and how it works. This may require training and practice, but it will be worth it, in the long run, to make sure you are using the software correctly.
Take the leap! Try CosmoLex.
Accounting doesn’t have to be stressful. In fact, managing your law firm’s finances has never been easier. With CosmoLex’s integrated billing, payment processing, and trust accounting features, you can take care of all your accounting needs from one platform instead of bouncing between multiple tools.
Having everything in one place makes it easier for you to manage your firm’s money responsibly and efficiently, so you can spend more time and energy focusing on your clients. If you’re ready to improve your accounting processes — and your bottom line — don’t wait. Sign up for your free trial to try CosmoLex now.
Checklist
Year-end Accounting Checklist for Law Firms
It’s important to regularly review and have a deep understanding of your financial health to ensure that errors will be caught and performance can be analyzed. Always knowing the status of your business allows for adequate planning and, if necessary, a change of course before it is too late!