Marketing AI in professional services: How law and accounting firms win in 2026

Law firm accounting is significantly complex, given the nuance and detail needed to track transactions. While accrual accounting is great for looking ahead, it’s not an ideal method for monitoring your cash flow or seeing how much cash you have. It’s also more complex and may require additional accounting staff to manage.

Item specifics

• Bill4Time’s time tracking features include timers, calendar-based entries, and manual adjustments which are all tied to matters and activities.
• Managing IOLTA accounts requires precision, especially when separating client funds from firm money.
• Never mix client funds in trust accounts with the firm’s operating funds.
• In order to find the right accountant, ask questions that answer your obvious requirement solutions.
• In other words, it is purpose-built for firms that want to relocate decisively and efficiently.
• IOLTA management requires pooling client funds in interest-bearing accounts while maintaining individual client balance records.

However, this onsite service comes at a higher cost due to salaries, benefits, and office space considerations. Ready to facilitate your law firm’s financial management with professional bookkeeping? You can either hire an in-house bookkeeper or outsource your bookkeeping to a virtual bookkeeper. Even minor errors in financial records can lead to significant problems during audits and reconciliations. Having a pro do the work helps ensure financial data precision and accuracy, which can help prevent costly mistakes, potential legal and tax issues, and client dissatisfaction. Managing client trust accounts demands careful attention to detail and strict adherence to regulations.

How Should You Handle IOLTA Management?

Some firms reconcile quarterly or annually, creating significant compliance risks. Legal accounting tools can be customized for specific jurisdictions, automatically alerting firms to changes in compliance rules. These features help firms stay current with evolving regulations without constant manual monitoring. IOLTA programs allow attorneys to pool client funds in interest-bearing accounts where the interest supports legal aid and charitable causes. These accounts serve clients whose funds are too small or held too briefly to generate meaningful interest individually.

Expense Tracking

For example, the IRS recommends keeping tax-related documents and bank statements for seven years. Bill hourly, by retainer, or per project, and send client-friendly reports that back up your value. Clients can access invoices, payment history, and documents in one place, reducing back-and-forth and improving communication across the board. Improve cash flow, generate cost savings, create back-office efficiencies, and get paid faster. These features help you stay organized, bill accurately, and run a more efficient practice—without adding complexity to your workflow. Attorney billing software is typically billed per user per month, and the cost varies based on features.

Failing to differentiate revenue and income

Merging two financial histories often highlights inconsistencies in reporting, profitability, and compensation structures. Before any integration work begins, thorough financial preparation and risk assessment are non-negotiable. The M&A process is fundamentally a transfer of financial risk and opportunity, How Bookkeeping for Law Firms Strengthens Their Finances and these must be quantified precisely. See how Plante Moran Wealth Management can help you define and realize your financial goals. For 100 years, we’ve brought our clients ideas, breakthrough strategies, and advisors they can’t get anywhere else, and we’ve created a shared legacy of trust with the people we serve. And for 100 years, they’ve counted on us to help them advance their goals, chart new territories, build stronger strategies, and — most importantly — help support those who count on them.