Think of Clio as your revenue tool, and QuickBooks Online as your expense tool. When you are paying expenses on behalf of your clients, you’ll track the initial cash payment in QuickBooks Online. When you recover those expenses from your clients, you’ll be using Clio.
When you add expenses to Matters or Bills in Clio, these will be charged to the client and appear on any invoices generated:
When the Clio invoice syncs, these expenses will also be reflected in QuickBooks Online.
Paying and Tracking Recoverable Client Expenses
To pay for a recoverable client expense from your firm's Operating Account and then reflect this in the IOLTA Account follow these steps:
- Decide how you want to code your recoverable client expenses. Some may prefer using a clearing account, while others might track the payment and recovery of these expenses in separate accounts. Make sure this is reflected in how you have your QuickBooks Online sync set up - please review this article for steps on configuring the QuickBooks Online sync settings.
- Process the payment from your Operating Account in QuickBooks Online.
- Add this reimbursable expense to the client's Bill in Clio.
You also have the option to record the expense on the Bill or Matter prior to actually paying the expense. This workflow might make more sense if you’re on the go - using the Clio iPhone or Android Apps. Just remember, it will need to be paid in QuickBooks at some point afterwards. Consider using a Task List Template to help you with these reminders.
Receiving Payment for Recoverable Client Expenses
Payments received and recorded in Clio will sync to QuickBooks Online and update the associated invoice. By using the Clio trust sync, payments for recoverable client expenses coming from a trust account will automatically be added to QuickBooks Online.
For details, see the "Using the QuickBooks Online Integration" article.