How Does the Quickbooks Trust Accounting Sync Work?

Objective:

  • Understanding Trust Accounting Sync from Clio to QuickBooks Online

Environment:

  • Clio Web App
  • QuickBooks Online

Additional Information:

Answer:

The Trust Sync will push all of the following to QuickBooks:

  • Manual additions or subtractions of trust funds
  • Matter to Matter transfers of trust funds
  • Payments made to Trust Requests
  • Payments on Revenue Bills from a trust account
  • Edits to any of these transactions


A Trust Account in Clio will need to map in Quickbooks to both:  

  • Trust Bank Account (an Asset account)
    • This bank account is an asset account that will match your physical bank account to hold the funds.
  • And a Liability Ledger (a Liability account)
    • Since any assets collected in the Trust bank account are not really assets but Liabilities, the Liability Ledger tracks the Trust funds so it doesn’t appear that the funds belong to you.

For a detailed explanation on why the sync requires both a Trust Asset Account and a Trust Liability Account, click here

A transaction to a Trust Account in Clio can be matched fairly straightforward in Quickbooks:

  1. A payment of money into Trust in Clio is a Journal Entry with:
    • A Debit to the Trust Bank Account (asset account) - Increases Trust Bank Account
    • A Credit to the Liability Ledger (liability account) - Increases Liability Ledger
  2. Removing money from a Trust Account in Clio for any reason is:
    • A Credit to the Trust Bank Account (asset account) - Decreases Trust Bank Account
    • A Debit to the Liability Ledger (liability account) - Decreases Liability Ledger
Was this article helpful?
This information is confusing or wrong
This isn't the information that I was looking for
I don't like this functionality