ERP Software for Legal & Accounting Firms
Law firms, CPA practices, and financial advisory firms operate under a unique combination of regulatory obligation, client trust requirements, and billing complexity. Practice management and ERP systems for this sector must handle trust accounting, matter-based billing, IOLTA compliance, partner equity and draws, tax workflow management, and client file management — while producing the audit-ready financial reporting required by bar associations, PCAOB standards, and client agreements.
Compare ERP Systems for Legal & Accounting Firms
Select up to 4 ERP vendors to compare side by side. Filtered to show systems with strong legal & accounting firms capabilities.
Key Challenges for Legal & Accounting Firms
Managing trust account compliance (IOLTA) and three-way reconciliation to avoid bar association violations
Billing accurately across contingency, hourly, flat-fee, and hybrid fee arrangements within a single platform
Tracking partner capital accounts, equity draws, and profit distributions alongside operating financials
Managing work-in-progress (WIP) write-ups and write-downs without distorting financial statements
Producing realization rate reports that show the percentage of standard billing rates actually collected
Ensuring conflicts-of-interest checks and matter intake workflows are integrated with billing and financial systems
Meeting regulatory reporting requirements including SAS 70, SSAE 18, peer review standards, and client billing guidelines
Best Legal & Accounting Firms ERP for SMBs
Recommended for companies with $10M–$250M revenue and 10–200 employees.
Clio
mid-rangeLeading cloud practice management platform for law firms with integrated trust accounting, matter-based billing, document management, and client portal in a single system purpose-built for legal practices.
Best for: Small to mid-size law firms seeking comprehensive legal practice management with trust accounting
Karbon
mid-rangePractice management platform built specifically for accounting firms with client workflow automation, email integration, team capacity management, and billing to support CPA firm operations.
Best for: CPA firms and accounting practices seeking structured workflow management and client billing
Sage Intacct
mid-rangeCloud financial management platform favored by professional services firms for its strong project accounting, multi-entity consolidation, and AICPA endorsement that resonates with finance-focused practices.
Best for: Accounting and advisory firms prioritizing best-in-class financial management and reporting
BQE Core
mid-rangeAll-in-one practice management and project accounting platform for professional services firms including legal, accounting, engineering, and consulting with integrated time, billing, and financials.
Best for: Small to mid-size professional practices seeking integrated time, billing, and project accounting
Thomson Reuters Practice CS
mid-rangeAccounting firm management suite covering practice management, billing, client portal, and tax workflow integration with Thomson Reuters tax products used widely in CPA practices.
Best for: CPA firms in the Thomson Reuters ecosystem seeking integrated practice management and tax workflow
NetSuite
mid-rangeFull cloud ERP providing strong financials, multi-entity management, and partner equity tracking for larger law firms and accounting practices that have outgrown practice-specific tools.
Best for: Mid-to-large professional practices needing full ERP capabilities beyond dedicated practice management
Best Legal & Accounting Firms ERP for Enterprise
Recommended for companies with $250M+ revenue and complex multi-site operations.
SAP S/4HANA
enterpriseEnterprise ERP platform for large law firms and Big Four-scale accounting organizations requiring global consolidation, complex partner equity structures, and deep financial reporting capabilities.
Best for: Large international law firms and major accounting firms with complex global financial operations
Oracle ERP Cloud
enterpriseComprehensive cloud ERP with advanced revenue recognition, project financial management, and analytics for large professional services organizations including legal and financial advisory firms.
Best for: Large legal and advisory firms requiring global financial consolidation and complex revenue recognition
Microsoft Dynamics 365
enterpriseIntegrated ERP and CRM platform with strong financial management and client relationship modules for large law firms and advisory practices standardized on the Microsoft ecosystem.
Best for: Large law firms and advisory practices on the Microsoft stack seeking unified client and financial management
Unit4 ERP
enterprisePeople-centric ERP with strong project accounting, partner equity management, and self-service capabilities designed for large professional services organizations including legal and advisory firms.
Best for: Large professional practices seeking flexible ERP with deep project financials and partner management
Essential ERP Capabilities for Legal & Accounting Firms
Trust accounting and IOLTA three-way reconciliation with automated compliance reporting
Matter-based billing across hourly, contingency, flat-fee, and hybrid arrangements
Partner capital account tracking with equity draw schedules and profit distribution automation
Work-in-progress (WIP) management with write-up, write-down, and realization rate reporting
Client and matter intake with conflict-of-interest check integration
Timekeeper productivity and realization reporting by attorney, partner, and practice group
Tax workflow management and client deliverable tracking for CPA and advisory practices
Accounts receivable aging with trust funds applied and client payment portal integration
Multi-entity financial consolidation for law firm networks and accounting firm alliances
Regulatory reporting and peer review documentation for bar association and PCAOB compliance
Legal & Accounting Firms ERP Cost Ranges
SMB
$10,000 – $50,000
5–50 users
Implementation: $8,000 – $40,000
Mid-Market
$50,000 – $250,000
50–300 users
Implementation: $75,000 – $350,000
Enterprise
$300,000 – $2,500,000+
300 3,000+ users
Implementation: $500,000 – $3,500,000+
Implementation Considerations
Trust accounting compliance is non-negotiable — verify that the chosen system has been reviewed by your state bar and supports your jurisdiction's specific IOLTA rules before committing
Partner equity and draw structures are often highly customized; document your exact profit-sharing formula before configuration to avoid post-go-live rework
Plan migration of historical matter and client financial data carefully — open WIP, outstanding AR, and trust balances must balance perfectly at go-live or billing disruptions follow
Involve billing coordinators and senior partners in UAT; billing workflow preferences vary significantly by practice area and partner seniority
Evaluate e-billing integration requirements early if you bill insurance companies, large corporate clients, or government entities — e-billing compliance (LEDES format, Tymetrix, Legal Tracker) adds significant implementation scope
Frequently Asked Questions
What is trust accounting and why is it critical for law firm ERP?
Trust accounting tracks client funds held in trust by a law firm — advance fees, settlement proceeds, and client retainers — separately from the firm's operating funds. Bar association rules require monthly three-way reconciliation between the trust bank statement, trust ledger, and individual client ledgers. Non-compliance can result in disbarment. ERP and practice management systems for law firms must have dedicated trust accounting modules that automate reconciliation and flag discrepancies immediately.
What is the difference between practice management software and ERP for law firms?
Practice management software (Clio, MyCase, Smokeball) focuses on matter management, document storage, client communication, and basic billing. ERP for law firms adds deeper financial management — multi-entity consolidation, partner equity accounting, advanced revenue recognition, and financial reporting at scale. Small firms (under 30 attorneys) typically use practice management tools; large firms (100+ attorneys) increasingly adopt full ERP platforms like SAP, Oracle, or NetSuite alongside or instead of practice management systems.
How do realization rates affect law firm profitability reporting?
Realization rates measure how much of billed and standard-rate value is actually collected. Billing realization (billed hours / worked hours) shows what percentage of attorney time reaches the invoice. Collections realization (collected / billed) shows what percentage of invoices are paid at full value. Low realization rates are the primary indicator of write-offs and discount pressure. ERP systems for law firms should provide realization dashboards by timekeeper, practice group, client, and matter to identify patterns before they materially impact profitability.
What is IOLTA compliance and how does ERP support it?
IOLTA (Interest on Lawyers' Trust Accounts) programs require law firms to hold client funds in designated interest-bearing accounts with interest remitted to state bar foundations. Compliance requires maintaining complete audit trails of trust receipts and disbursements, monthly three-way reconciliation, and prohibition on commingling client and firm funds. ERP and practice management systems with dedicated IOLTA modules automate the reconciliation process, generate bar-compliant reports, and flag any negative client ledger balances that would constitute a trust violation.
How do CPA firms manage workflow and billing in one system?
CPA firm practice management platforms like Karbon, Thomson Reuters Practice CS, and CCH Axcess Practice connect client intake, engagement letter management, task assignments, deadline tracking, and billing in a unified workflow. Time posted against an engagement flows automatically to the billing module for review and invoice generation. Integration with tax preparation software (Lacerte, ProConnect, Ultra Tax) further connects the delivery workflow with billing to reduce duplicate entry.
How should large law firms structure their ERP for multi-office consolidation?
Large law firms with multiple offices, practice groups, or international presence should implement ERP with a multi-entity structure that allows each office or entity to maintain its own books while rolling up to consolidated firm-wide financial statements. Intercompany cost sharing — for shared services, referral fees, and expense allocations — should be automated to minimize month-end close friction. SAP S/4HANA, Oracle ERP Cloud, and NetSuite all support this structure natively.
What e-billing standards do large law firms need to support?
Corporate clients and insurance companies often require electronic billing in standardized formats. The most common are LEDES 1998B and LEDES XML for matter-level time and expense detail. Many corporate legal departments use e-billing platforms such as Legal Tracker (Thomson Reuters), Brightflag, or Wolters Kluwer ELM Solutions. Law firm billing systems must support LEDES export and ideally offer direct integration with these platforms to automate submission and rejection handling.
Can accounting firms use the same ERP as their law firm clients?
Technically yes, but the operational requirements differ enough that specialized tools are usually preferred. Accounting firms benefit from practice management platforms with tax workflow integration (Thomson Reuters Practice CS, Karbon, Jetpack Workflow) that law firm ERP systems do not prioritize. Both firm types benefit from the same financial backbone — NetSuite, Sage Intacct, or Dynamics 365 — for consolidation, multi-entity reporting, and partner equity management.
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