Work-in-progress accounts and unpaid bills are common among legal firms, which makes it hard to predict how much cash will come or go each month. Fortunately, cash flow software can help.
In this article, we’ll compare the top forecasting software based on features, benefits and prices to find the best tool for your firm.
Importance of Forecasting for Small Law Firms
Forecasting can help law firms predict revenue and expenses in the short and long term. With accurate forecasting, law firms can create accurate budgets and make better decisions about how to spend their financial resources.
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Key Features to Look for in Forecasting Software
When choosing forecasting software for a small business or law firm, look for software that makes forecasting easy. The user interface should be intuitive and it should be easy for anyone to create and interpret cash flow forecasts.
Look for a cash flow tool that automatically imports data from other programs and provides a range of forecast options that give you a complete picture of your law firm’s financial health.
Top Forecasting Software Options for Small Law Firms
The best small business financial forecasting software for law firms are:
- QuickBooks
A leading accounting software that provides general accounting functions as well as forecasting.
- Excel
A powerful spreadsheet tool that many law firms use to record financial data and create forecasts.
- Cash Flow Frog
Leading cash flow software specifically designed for forecasting cash flow.
Integration with Other Legal Software
QuickBooks is a popular accounting platform that integrates with many different platforms, including LeanLaw, a top legal billing software.
Excel is a popular tool with many integrations. For example, law firms can use Excel to import data to legal platforms such as Clio or LeanLaw.
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Cash Flow Frog integrates with popular accounting programs like QuickBooks, Xero and Sage. Cash Flow Frog can automatically import your law firm’s financial data from these platforms, letting you create cash flow forecasts based on the most up-to-date information.
Cost-Benefit Analysis
QuickBooks pricing ranges from $15/month to $100/month. With QuickBooks, users can create simple cash flow projections but not in-depth forecasts.
Excel is available for $6.99/month or a one-time purchase of $159.99. Excel is capable of making detailed forecasts, but users must have special training in Excel.
Cash Flow Frog costs $31/month for the standard plan and $39/month for the pro plan. Law firms can quickly and easily create cash flow forecasts based on data automatically imported from their accounting software.
Cash Flow Frog also allows users to create forecasts based on different scenarios. The software also compares forecasts with actual cash flow and can provide law firms with deep customer insights.
Choosing the Right Forecasting Software for Your Firm
Examine the needs of your firm to decide which software is best. If you have few clients and limited expenses, a simple tool like Excel may be sufficient. Cash Flow Frog may be more suitable if you have lots of cash flows to manage and need detailed forecasts.
In conclusion
Excel and Quickbooks have many functions, including forecasting. They can project cash flow, but forecasting features with QuickBooks are limited and Excel requires specific knowledge.
Cash Flow Frog is a small business financial forecasting software specifically designed for forecasting. It can import accounting data from software like QuickBooks to create up-to-date forecasts. It also comes with extra features like scenario forecasts, planned vs actual cash flow analysis and customer insights.
Source: Cash Flow Frog
