Have you ever run into an ‘Insufficient Funds’ error when attempting to record a payment on a bill from a Trust Fund, and you know that there should be funds available? There is a simple way to remedy this situation.
There are two ways of recording Trust Funds or Retainers in Clio: at the Client Level or the Matter Level. If you record these funds on the Transactions tab on the Client’s Contact Card, they will be available as payment for bills associated with any Matter the client may have. If you record the funds on the Transactions tab within the Matter, these funds will only be available to pay bills associated specifically to that Matter.
Having funds recorded in the wrong Matter can cause the ‘Insufficient Funds’ error. Sometimes there may be negative balances on the Transactions tab, and this can cause the error as well. To fix this, go to the Client (on the main Contacts page), click on the Transactions tab, click on the green ‘Add’ button and then select the ‘Transfer Funds Matter-to-Matter’ tab. When the ‘New Transaction’ window opens, select the appropriate Bank Account and then click the drop-down menu in the ‘Source’ field. This will show you where all the funds are currently residing. You can now use this window via the ‘Source’ and the ‘Destination’ field to transfer funds to the Client level so they will be available for all Matters. Alternatively, you can move funds from one Matter to another or move funds to correct a negative balance.