Set up separate ledgers for trust and operating accounts
Use Clio’s trust accounting software to create trust and operating accounts as required by legal industry regulators. See all transactions connected to a matter or client, and whether they are trust or operating account transactions.
Create invoices that comply with regulations
Present line items clearly on your legal invoices and detail funds removed from a trust, along with remaining trust account balances.
Generate reports required for trust accounting compliance
Run built-in trusting accounting reports. See all accounts and transactions associated with a client via the client ledger report, and generate client statements of account in just 3 clicks.
Reconcile accounts with ease
Use reports to conduct 3-way reconciliations manually or with the assistance of Clio’s integrations with other accounting software such as Quickbooks, Xero, and Trustbooks.
Make generating requests and accepting deposits easy
Send trust requests over email or through our secure online portal, Clio Connect. Allow clients the flexibility to deposit into trust accounts via online credit card, all according to legal industry rules.
Stay on top of your trust account balances
Use evergreen retainer management in Clio’s trust accounting software to set an alert when a trust fund drops below a certain threshold.
Move funds in and out of trust comfortably
Create automated transaction logs as you issue trust disbursements, apply trust funds to invoices, and transfer trust funds to operating accounts.
Keep tabs on your firm’s financial health
Stay on top of your law firm’s work in progress, billing history, invoice payments, aging receivables, and more.
Calculate attorney compensation
Summarize collected amounts by originating attorney to visualize and quantify how much income each lawyer at your firm has brought in.
Connect your favorite accounting tools
Integrate with popular accounting tools, such as Xero or QuickBooks Online, for full general ledger legal accounting. Avoid duplicate data entry between platforms and simplify reconciliations.
What is trust accounting software?
Trust accounting software helps law firms comply with rules that many legal jurisdictions have in place regarding the accounting of funds held in trust on behalf of a legal client.
What are the basics of trust accounting compliance?
The fundamental aspects of a lawyer’s duty when it comes to handling client funds include:
- Identification: Depositing funds into an account specifically labeled as a trust account.
- Segregation: Keeping client funds on deposit separate from a lawyer’s operating or personal funds.
- Accounting: Lawyers must create and maintain appropriate records of funds belonging to their clients.
These are some of the basics of trust accounting compliance, but some U.S states also have additional rules if you’re handling client funds.
One of the advantages of using Clio’s legal-specific trust accounting software is that it is built to provide trust accounting functions that are easy to manage and maintain.
Will trust accounting software help me meet IOLTA requirements?
Yes. You can create an account in your trust accounting software specifically for IOLTA transactions. You can then monitor all payments, interest, and disbursements through that fund.
How do I keep my trust accounts full of funds?
Our trust accounting software offers an evergreen management feature that sends you a notification when trust accounts reach a minimum dollar amount.
You can also create a credit card payment plan that will automatically charge a client on a monthly or weekly basis, and deposit the specified amount into their trust account.
Does Clio have the specific report required for trust accounting compliance in my jurisdiction?
Our trust accounting software includes built-in reports that help meet general trust accounting guidelines, in addition to several reports made for specific jurisdictions. Our trust accounting software also allows you to export transactions to Excel.
What information does Clio sync with QuickBooks?
Clio’s legal accounting software syncs contacts, bills, time entries, expenses, and payments to QuickBooks. Learn more here.