The phrase “legal software” applies to an entire range of apps and platforms that help run law firms smoothly. Law firms rely on various systems that fall under this label, but those systems have their own names and purposes.
The variety and specificity of the tools available can sometimes lead to confusion — what one person refers to as “legal software” might focus primarily on managing documents, while another uses the term to describe comprehensive legal practice management software. Firms searching for the best legal practice management software may find that the overlapping terminology makes it hard to distinguish between solutions.
Understanding the specific functions these legal software solutions cover will give you clarity on why certain names are used and how they relate to each other. Let’s explore the roles they serve and how they fit into the bigger picture.
What Is Legal Software Used For and What Are the Common Naming Conventions?
At its core, legal software programs exist to simplify and automate the day-to-day operations of a law firm. While the term “legal software” is often used as a catch-all, the reality is that these tools have a broad range of functionalities.
Each aspect of legal work — whether it’s time tracking, client management, or document storage — has specific software solutions tailored to it. However, the best legal application software will usually have all the features you need wrapped up into one solution. Most of these programs are subscription-based, so be wary of free legal software options, as they often come with security risks that could put sensitive client data at risk.
Below, we’ll run through some of the more common terminology around legal software, so you know exactly what to look for when you’re shopping around.
Practice Management Systems
You’ve probably heard practice management systems called a dozen different things — case management software, law firm software, or even just “legal software.” The truth is, it’s all referring to the same basic idea: a platform that takes care of the nuts and bolts of running a law firm. It’s the system that helps with the routine stuff — managing cases, tracking time, handling billing, and keeping client communication organized.
For example, PracticePanther includes features for managing cases, tracking billable hours, and securely sharing documents with clients. It’s a more comprehensive solution that handles many tasks under one platform.
Regardless of names or labels, practice management software usually serves as the core technology of a law firm, bringing everything together in one space.
Document Management Systems
Managing a steady stream of documents is part of every lawyer’s day-to-day. To keep things running smoothly, it’s important to have a reliable way to store, organize, and access them. A document management system (or ‘DMS’) is specifically designed for this, allowing files to be stored and retrieved digitally with ease.
Some firms that deal with large quantities of documents prefer standalone solutions that are solely focused on document management. Others might use a broader practice management system that includes document management as part of the package. Either way, “document management” is the key phrase to look for.
Time Tracking and Billing
You can’t run a law firm without knowing where your time goes and making sure you’re getting paid for it. Software can be incredibly helpful for this particular task. Some tools focus entirely on time tracking — nothing fancy, they just keep tabs on hours worked. There are also systems that handle the entire billing process, from tracking time to sending clients invoices.
You’ll come across all sorts of names for these tools. Time tracking software usually just covers the basics, while legal billing software covers invoicing and payments as well. You might also hear time and expense tracking tools or practice management systems with integrated billing, where everything is wrapped up together.
Payment processors are another part of this equation. Many billing tools offer built-in options to accept credit cards and ACH payments, and some also send automated payment reminders. You’ll see terms like “legal payment processor” or “ePayments” when this feature is highlighted. Although you can get separate software for ePayments, it’s best to find a billing solution with a native payment processor, as it makes the billing process much easier.
Trust Accounting Software
When it comes to managing a law firm’s money, regular accounting software doesn’t cut it. You need accounting software that caters to the unique requirements of legal practice, especially when trust accounts are involved. Balancing client funds and ensuring they’re kept separate from operating accounts is a vital part of maintaining and ethical practice (and your license).
You’ll often hear it referred to as “trust accounting software.” Other times, it’s part of a larger legal practice management system, bundled in with other tools for law firms. It can also be labeled as legal accounting software, and you might even see it advertised as Interest on Lawyers’ Trust Accounts (IOLTA) accounting.
Customer Relationship Management (CRM)
Every firm needs a way to stay on top of client interactions — keeping track of who you’ve spoken to, what was discussed, and what’s coming up next. Legal CRM systems are responsible for managing all your client interactions and ensuring you have the full picture when you need it.
Larger firms at a more enterprise level tend to use dedicated CRM software. But again, as with many of these tools, you can find CRM features in all-in-one legal practice management software. You’ll often hear it called law firm CRM, legal CRM software, or simply client management software.
Legal Research Databases
Legal research databases give you access to case law, statutes, regulations, and secondary sources, all in one place. Some databases offer specific tools for particular practice areas, while others cover a broader range of legal topics.
When you’re searching for which legal database is best, you’ll run into terms like “legal research tools, “legal information system,” “online law library,” and a variety of other similar terms. While these terms may seem interchangeable at first glance, they often signal subtle differences in focus and functionality.
For example, “legal research tools” tend to encompass platforms with comprehensive legal information, including case law, regulations, and secondary sources. These are often broader and cater to firms needing a wide array of legal data at their fingertips. On the other hand, a “case law platform” likely zeroes in on judicial decisions and case precedents only.
The Importance of Choosing the Right Legal Software
It’s easy to get lost in the naming conventions of legal software, but what truly matters is how these systems work together. PracticePanther brings all the functions a law firm needs into a single, intuitive platform. From managing cases and documents to billing clients and securely sharing information, it handles the everyday tasks with efficiency, without forcing you to manage and pay for multiple systems.
Ready to explore how it could fit your firm’s needs? Start a free trial now or book a free demo by clicking below.
