Like most business firms, accounting is an integral requirement of law firms as well. The specialized accounting needs of a law firm demand the use of a software designed for legal accounting. The basic aim of investing in such software is to enable you to work faster and smarter. But without careful consideration, you can land up with the wrong accounting software for your firm. So, how do you select the right software for your purpose?
Here are a few things that you should consider when selecting accounting software for your law firm.
What are your accounting requirements?
Before you select any legal accounting software, determine the type of tasks for which you need it. A general purpose accounting software will not be ideal for use in a law firm. Make a list of the major tasks that you expect the software to perform for you. This list must include the general accounting requirements as well as the requirements that are specific to your law firm. Apart from the current operations of the firm, you will also have to spare a thought about the future operations. Software that seems to be perfect for handling your firm’s requirements today may not remain so a couple of years later. To be on the safe side, keep expansion and business growth plans in mind when chalking out the accounting requirements of your law firm.
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What type of modules is included?
Once you list out your law firm’s accounting requirements, the task of finding appropriate software becomes easy. You can narrow down your choices by eliminating any software that does not match your needs. Be aware that accounting software is sold as packages that cover basic accounting needs and have certain specialized features as well. When you consider software for your law firm, know about the core modules and features that come included with the package. Understand if you will need to invest in any additional module to ensure that your requirements are entirely met. This will lend you a proper idea about the whole cost of the software and help you to make a comparison between various accounting software packages.
Is the software portable and easily accessible?
If your law firm is based at a single location and you have no plans to branch out, a legal accounting package meant to install on a network server will be fine for your purpose. But if your law firm is based out of multiple locations or you intend to have more branches in the future, you have to make sure that the software you install can be accessed from all your branches. Also, you have to ensure that the software can be easily accessed when you are travelling or are out of your office building. This way you can keep up with your accounting requirements when you are on the go.
How easy is it to use the accounting software?
You may get powerful accounting software installed in your law firm. But will it serve its purpose if your employees are not able to use it? When you are out selecting the software, make sure that you keep in mind the ability of your firm’s employees in handling accounting tasks as well as the ease of using the software you are considering to adopt. Certain accounting software packages may need enhanced knowledge of accounting. If you want to install such software in your firm, you can train your employees so that they learn how to use it smoothly. But in this case, you may have to spend an additional amount for the training of your employees.
Is the software within your budget?
Cost always plays a crucial role when it comes to buying anything. It is no different in case of your accounting software as well. After you have sorted through the various accounting software packages based on your requirement, the modules included, portability, and ease of use, you have to consider the price factor. If you have a fixed budget for your accounting software, you can look for the packages that fit your bill. Try to set a realistic budget. Else, you may have to compromise on some modules or features in order to stay true to your budget limits. Remember that you may have to pay an additional amount if you can’t carry out the setup and installation of the software package by yourself. Also, you will need to include the fees for annual licensing and upgrades when determining the overall cost of the software package.
