Switching software platforms. Just the idea of changing the accounting software you use at your law firm is enough to make you break out in a sweat. Let’s call it the “software sweats.”  

You know the usual reasons for that prickly feeling: the legal industry is historically resistant to technological change, colleagues claim that they don’t have time to spend learning a new system, and it has to be timed right with everyone’s busy schedules so that client service remains seamless. 

It’s certainly a big decision. And as much as it may feel easier to stick with what you know, there are innovations you can take advantage of to be more efficient and effective. One of those areas is with your law firm’s accounting software, a key tool in any firm’s arsenal. 

Here are seven things to consider before you commit to making the switch. 

1. Legal-specific design

You wouldn’t have your dentist fix your car’s engine. So why would you choose a software solution for your law firm that’s designed for real estate agents?  

Lawyers have very specific rules and regulations that guide their work. It’s important to ensure compliance, and it takes time to do it right.  

Trust accounting, for example, can be an onerous process. That’s because strict controls are needed to avoid commingling client funds and operating accounts. With general accounting software, you have to take extra steps to ensure that doesn’t happen. 

Legal-specific trust accounting software can automatically allocate all payments to the correct accounts to ensure your firm avoids even the slightest mistake. It can also generate trust reports with just a few clicks and handle regular three-way reconciliation.   

2. Your practice’s unique needs

Before you choose legal accounting software, inventory your firm’s needs and identify areas where you could improve and save time.  

Perhaps you’re looking to achieve greater productivity and increase the number of billable hours by streamlining back-office tasks. Maybe you need software with built-in compliance checks, a customizable chart of accounts, or an automatic bank data feed so you can see transactions in real time without switching screens. 

The available features in the accounting software you select should always match the needs of your firm. Talk to staff members at all levels and see what their complaints may be about your existing software, and what they wish it could do—you may be surprised by what you learn. 

3. Integrations with other software you rely on

Accounting and bookkeeping require you to pull information from a variety of sources to create a complete picture of your firm’s financial health. Consequently, accounting software never stands alone: You need to be able to integrate it with the other tools your firm uses to manage the practice, like your email platform, calendars, file-sharing system, and more.  

If your accounting software works together seamlessly with your billing and payment software, that’s a game changer for your practice. Easy-to-implement integrations mean that you don’t have to lose billable hours entering the same data set multiple times or risk costly (or embarrassing) data entry mistakes.  

4. Cloud-based vs. local installation 

There are a few reasons why law firms hold onto legacy software solutions that require installation on each device. For some, it’s simply a preference for the status quo. Others may be concerned about data loss, infrastructure costs, or maintaining access to specialized features.  

Solutions that are cloud-based can save firms money on infrastructure costs, given that the provider takes care of all backend processes. That also means firms are less likely to have to worry about data loss during the migration period.  

Cloud software also provides a level of convenience that legacy software cannot, as it needs minimal installation and is often accessible from anywhere. Many cloud-based platforms also offer updated features that rival (or are better than) on-premises software and are continually updated to keep up with technological advances. 

5. The security features offered

Data security is not something that’s just “good to have.” It’s absolutely required because without it, your firm risks fines for failing to comply with regulatory statutes.  

As such, you need to thoroughly investigate the security features of your chosen accounting software.  

Ensure that the software provider has completed Service Organization Control (SOC) 2 Attestation, an auditing process for cloud-based software providers that store sensitive data. It ensures that these companies: 

• Monitor their network traffic 
• Have data-breach-response plans in place 
• Use encryption tactics to handle private data 
• Employ real-time monitoring for data processing 
• Have robust and regularly updated privacy notices 
• Protect their systems from threats with firewalls, filters, and multifactor authentication 

If a software company cannot attest to these practices, keep looking. 

6. The ease of the data migration process

Another reason why firms tend to avoid switching their accounting software is because they dread the data migration process.  

Many firms attempt the process without support from the software provider, thus exposing themselves to risks of data loss, file corruption, data breaches, and downtime, which can all prove costly in more ways than one. 

If you don’t have a full IT team, you could likely use support in the form of Excel templates and import functions. Before you make a switch, ensure that the software company understands the transfer process so you know your data is in good hands. 

7. The caliber of customer support

Before making the final choice about which accounting software your firm should use, make sure to check out the software company’s support features. A plethora of self-service resources should be available to help you troubleshoot issues quickly, including a knowledge base, video resources, or an educational resource center. 

Additionally, you need to ensure that you are able to get in touch with someone if your firm runs into issues with data migration or using the software platform. If the software company expects you to make everything work on your own, you may want to look into a different solution. 

A trusted accounting solution like CosmoLex makes all the difference 

Business and trust accounting is at the core of your firm’s financial practices. You want to streamline things to save time and ensure regulatory compliance every step of the way, and choosing the right solution is key to reaping these benefits.  

CosmoLex has you covered. As the go-to solution for legal-specific accounting software, we give you the tools you need to thrive, from business accounting features that allow for cash and accrual basis general ledger accounting, to trust accounting that allows you to easily manage individual client accounts and generate comprehensive recordkeeping reports.  

Sign up for your free trial to see how we can help you streamline your law firm and trust accounting.