Accounting is one of the most common sources of risk inside a law firm, not because attorneys don’t understand the rules, but because many of the systems they use weren’t built to enforce them. We look at how firms are moving from generic tools like QuickBooks to native legal trust accounting software designed specifically for compliance.
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Accounting is one of the most common sources of risk inside a law firm, not because attorneys don’t understand the rules, but because many of the systems they use weren’t built to enforce them. Many law firms stitch together their practice management software with separate, often generic accounting solutions like QuickBooks – creating data gaps, double entry, and compliance risk.
To address this problem, PracticePanther has launched PantherAccouting Plus, a powerful new feature set that allows law firms to seamlessly manage all aspects of their trust and operating accounting directly within PracticePanther. With PracticePanther Plus built natively into PracticePanther, law firms now have a single platform that handles every function from client intake all the way to financial close.
Seamlessly Connecting Casework and Financial Data
With PantherAccounting Plus links financial data directly to case activity as it happens. Rather than relying on periodic syncing or end-of-month manual reconciliation between platforms, firms can maintain a more consistent, real-time view of their trust and operating finances without adding extra steps to their workflow.
Intuitive and Compliant Trust Accounting
According to the American Bar Association, trust accounting errors and misappropriation of client funds remain the leading causes of attorney disciplinary actions. By providing built-in safeguards and a clear, repeatable reconciliation process, PantherAccounting Plus delivers an intuitive trust accounting system while helping firms stay compliant at every step.
It all starts with the guided three-way reconciliation wizard, which allows you to complete end-of-month trust reconciliation within minutes. There are also pre-set guardrails in place that prevent the commingling of funds, stop overdrafts before they happen, and block early recognition of unearned revenue. When your reconciliations are complete, you can generate reconciliation reports instantly to ensure compliance with the ABA and state bar regulations.
To keep matters properly funded, firms need visibility into when retainers are running low. PantherAccounting Plus assists with automated low balance alerts on client retainers that notify you when trust accounts fall below designated thresholds and proactively generate retainer replenishment invoices that can be sent to your clients.
Native Firm Operating Accounting
When key data is siloed across separate systems, firms often need to reconcile multiple sources before gaining a clear view of their financial performance. PracticePanther’s centralized tracking of income and firm expenses such as office rent, marketing, insurance, and payroll, provides you with a complete view of firm overhead and profitability.
With PantherAccounting Plus, your firm’s general ledger is embedded right within the practice management workflow, allowing all firm and matter-level financials, from billable work and reimbursable expenses to trust transactions and operating costs, to flow directly into your books in real time.
PracticePanther’s legal-specific chart of accounts allows you to fully customize your general ledger (including income, expenses, assets, liabilities, and equity accounts) to fit your law firm’s unique structure. Unlike general accounting software, PantherAccounting Plus allows you to perform matter-level expense trackingthat links reimbursable costs directly to the correct client, case, and account.
Robust Financial Reporting with a Single Click
PantherAccounting Plus includes a full suite of financial reports, including profit and loss statement, balance sheet, cash flow statement, and trial balance, along with trust account summaries and reconciliation reports.
With PracticePanther’s robust financial reporting engine, firms can analyze financial performance, monitor cash flow, and prepare for tax filings without relying on piecemeal exports or disconnected spreadsheets. Reports can also be easily shared with accountants or external stakeholders when needed.
Simplify Your Legal Accounting Today
For attorneys, compliance isn’t something that happens just at month-end, it’s something that needs to be maintained continuously. Having the right systems in place can make the difference between catching issues early and uncovering them after the fact.
PantherAccounting Plus gives firms greater control over their financial data, helping ensure that compliance is built into everyday workflows rather than treated as a separate process.
Interested in seeing PracticePanther in action? Schedule a Demo today!
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