Clio Manage

Legal and Trust Accounting Management

Legal trust accounting doesn’t have to be intimidating. Clio gives you the peace of mind that every trust transaction is recorded in a compliant manner across ledgers according to industry regulations.

Manage your trust accounting in accordance with industry rules

Manage client funds in trust accounts with our legal accounting software. Keep detailed records that separate client funds from your firm’s operating funds.

Clio Manage Simplified UI Accounting Billing Trust Account
  • Keep it simple and reconcile directly in Clio

    With several reconciliation options, choose to manage your firm’s trust accounting from the same place you already bill and collect—right in Clio. Simply match trust transactions to your bank account statement directly from the Accounts tab.

  • Generate and store reports required for trust accounting compliance

    Run built-in legal trust account reports to see all accounts and transactions associated with a client through the client ledger report and generate client statements of account. Or, keep up to 10 years of reconciliation reports when you reconcile directly in Clio.

  • Set up separate ledgers for trust and operating accounts

    Use Clio’s trust accounting software to track 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

    Clearly present line items on your legal invoices that detail funds removed from a trust account along with remaining trust balances.

Handle your trust accounting with confidence

Apply and document the transfer of trust funds knowing all transactions are properly logged across your ledgers.

  • Make generating requests and accepting deposits easy

    Send trust requests over email or the mobile-friendly client portal and give clients the flexibility to deposit funds into their trust account online—and in accordance with legal industry rules.

  • Stay on top of your trust account balances

    Use evergreen management to stay on top of retainers in Clio’s trust accounting software to set an alert when available trust funds drop below a certain threshold.

  • Comfortably move funds in and out of trust

    Create automated logs for all trust transactions as you apply funds to invoices, transfer funds to operating accounts, and issue disbursements or refunds.

  • Use QuickBooks Online to print trust checks

    Disburse funds from Clio to a check and automatically sync the record to QuickBooks Online where you can print trust check disbursements.

Manage and report on all firm financials

We’re more than just legal trust accounting software. Clio helps you manage your firm’s profitability, compensation, financial health, and more.

  • 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 business accounting tools

    Integrate with popular accounting tools, such as Xero or QuickBooks Online, for full accounting capabilities. Avoid duplicate data entry between platforms and simplify reconciliations.

Frequently Asked Questions

What is trust accounting?

Trust accounting is the process of tracking and monitoring client funds that are held in trust. These funds must be held until they are used for a specific client’s case, and cannot be accessed any earlier.

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 allows you to either reconcile directly in Clio or make use of 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.

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