We've said it before - Trust/Client Account management in Clio is easy! For specific guidance on managing your Trust/Client funds in Clio, please view this article.
If you follow these steps appropriately, the pooled Trust/Client account will have an aggregate balance and all funds will be linked to the Client or Matter. You can then use Clio’s Trust/Client Ledger and Trust/Client Listing reports to give you a snapshot of current Trust/Client transactions and balances. Users are able to report on a per-Client and per-Matter basis the total of the client’s funds being held in the pooled account:
By integrating Clio with Xero, all invoices and payments will be syncing over from Clio to Xero on your behalf, saving you a ton of time! In order to complete your trust/Client account reconciliation within Xero, there are a few additional steps, as outlined below.
Receiving Funds in Trust/Client in Xero
When you receive funds in Trust/Client, you need to create a Manual Journal Entry in Xero to increase your Trust/Client Bank Account and Trust/Client Liability Account. This information does not sync from Clio due to limitations on how the two programs can communicate.
Paying Invoices from Trust/Client Funds in Xero
In Clio, when you apply Trust/Client funds to an invoice, Clio will move the funds from the Trust/Client account to the designated Operating Account:
When the payment syncs over to Xero, you will need to create a Manual Journal Entry to adjust the balance of your Trust/Client Liability Account and Trust/Client Bank Account in Xero to accurately reflect your Trust/Client Balance. If you have received multiple payments from Trust/Client in a period, Clio’s Trust/Client Ledger report can help you reconcile these transactions in Xero.
Returning Funds in Trust/Client in Xero
When you return Trust/Client funds back to your clients, you need to create a Manual Journal Entry to decrease your Trust/Client Liability Account and your Trust/Client Bank Account accordingly.
For additional information about reconciling your Trust/Client accounts each period, see this article.