Comprehensive Guide: Bank Accounts and Transactions

  • Introduction

    Adding static bank accounts in Clio is especially important to those firms with a trust accounting workflow and allows for an additional ledger for use in 3-way account reconciliation.

    Even if your practice does not receive funds in trust, you must add at least an operating account to Clio if you plan on generating invoices for your clients.

    In this chapter, you will learn how to add an account to Clio and how to add client and Matter level trust transactions.

    For a quick start to working with Accounts, we suggest starting with the "Accounts" video on the next page.

  • Video: Accounts

  • Adding a Bank Account

    Before you can receive payments in Clio, you must create an operating account

    Before you can create trust transactions or use the Trust Request feature, you must create a trust account

    To add an account, go to the "Accounts" tab and click "New".

    In the "Create New Bank Account" form, select the appropriate account type: Operating or Trust.

    Of the remaining fields, only the "Account Name" is required. All other fields are optional.

    This account in Clio is meant to mirror your bank account but will not be linked to your actual bank account.

    Opening Balance

    For trust accounts, the "Opening Balance" field should be kept at $0.00. Advancing your trust account's balance should be done by adding trust transactions to your clients and Matters, reflecting those transactions in your actual bank accounts.

    For more information about creating and managing bank accounts in Clio, see the "Managing Accounts" article.  

  • Adding Trust Transactions

    Trust transactions can be added at either the client level or the Matter level.

    Client Level Funds
    Trust funds associated with a client can be used to pay bills for any of that client's Matters.

    Matter Level Funds
    Trust funds associated with a particular Matter can only be used to pay bills for that specific Matter. 

    To add a transaction on the client, navigate to the appropriate Contact card. To add a transaction to a Matter, navigate to that Matter's details screen.

    From either a Contact card or Matter:

    1. Click the "Transactions" sub-tab
    2. Select the appropriate account
    3. Click "Add"

    In the "New Transaction" form, all fields are optional. At minimum, we suggest that you complete the following fields. 

    1. Amount
      The amount of the transaction.
      • Enter in a positive amount to represent amounts received.
      • Enter a negative amount to represent amounts disbursed or returned to the client. (i.e. -5000) 
    2. Date
      The date that the transaction took place in your bank account.
    3. Source/Recipient
      Enter details about where the funds were received from or disbursed to.

      Source/Recipient is reportable in the "Client Ledger", "Trust Ledger" and "Bank Account Activity" reports.

    4. Type
      The type of payment (i.e. cash, check, money transfer, credit card, etc.).
    5. Description
      Enter in the reason for the transaction (i.e. prepayment or retainer details, disbursement or refund details)

      Transaction Description is reportable in the "Client Ledger", "Trust Ledger" and "Bank Account Activity" reports.

    6. Check or Reference
      Enter a check number, confirmation number, or payment reference number that may be useful when consolidating with your bank statements.  

      Reference number is reportable in the "Client Ledger" and "Trust Ledger" reports.

    7. Client and Matter
      Ensure that the appropriate client is selected and, optionally, the appropriate Matter.

    Click the "Record Transaction" button to complete the transaction record. 

    You will now be able to view the transaction in your Matter, and/or client ledgers and be able to pay your client's bills with the available funds in trust.

    Paying bills with client funds in trust is covered in the "Billing Workflow" chapter of this guide.

    For more information about creating and managing trust transactions in Clio, see the "Managing Account Transactions - Retainers, Deposits, or Pre-Payments" article. 

    Next Chapter topic: Bill Settings, Bill Themes, & Payment Profiles