In Clio Manage, protecting client trust funds lets you set aside specific fund amounts for future use, such as covering counsel fees, undertakings, expenses, or future invoices. Managing trust funds involves numerous industry regulations, and your firm may need strict control over them. Protected funds are set aside from the available matter balance and remain available only for the purpose you reserve them for. With funds protected, your firm keeps clear control over how client money is used.
Note: Only administrators can enable the protected funds setting. Once enabled, users with Accounts permissions can add, edit, or delete protected funds, or apply them to invoices. Other firm users can view protected funds, make edits, and send requests to users with Accounts permissions to release protected funds. Only administrators can enable the protected funds setting. Changes to protected funds are recorded in the matter Timeline with the user, date, and time.
Enable the protected funds setting
Before getting started with protected client funds, an administrator on the firm account needs to enable the setting.
- Go to Settings > Billing.
- Select Protected funds.
- In the Protected matter funds section, turn the toggle to the on position.
Manage protected funds
With Accounts permissions, you manage protected funds from a matter Dashboard and apply them to invoices from Billing.
Note: You can protect funds when the client has available client funds. Add client funds by creating a client funds request and recording a payment.
- Go to a matter.
- In the Dashboard subtab, open the Financial section and go to the Available client funds box.
- If this is the first time protecting funds for the matter, click Add next to Protected funds. If you already added protected funds, click the protected funds total, then click Add funds.
- If applicable: When client funds are held in more than one account, select the relevant account in the Bank account field.
- Enter the amount to protect and add a protected fund name for easy reference.
- Click Add.
The protected amount is subtracted from the available client funds. To view it, click the protected funds total in the Available client funds box.
- Go to a matter.
- In the Dashboard subtab, open the Financial section.
- In the Available client funds box, click the protected funds total next to Protected funds.
- Click the pencil icon to edit a protected fund.
- Change the amount or fund name, then click Save changes.
Note: The client funds account selected when you first protected the funds is fixed. To use a different account, delete the protected funds and recreate them with the correct account.
Deleting protected funds removes the protection and returns the amount to the available matter client funds balance. It does not remove the funds from the matter.
- Go to a matter.
- In the Dashboard subtab, open the Financial section.
- In the Available client funds box, click the protected funds total next to Protected funds.
- Click the bin icon to unprotect a fund.
- Click Delete to confirm.
- Go to the main Billing tab, or the Bills subtab in a contact or matter.
- Find the invoice to apply the protected funds to. Use the quick filters or keyword search to find unpaid invoices.
- Click the down arrow next to Send and select Apply protected funds.
- Select the account the protected funds go into and the protected fund to use. If the client has one protected fund, it is pre-selected.
- Click Apply funds.
Work with protected funds
Without Accounts permissions, you can view protected funds, increase an existing protected amount, and edit the reason. You can also send a request to users with Accounts permissions to release funds to the client or apply them to an invoice. When you send a request, all users with Accounts permissions receive an email.
- Go to a matter.
- In the Dashboard subtab, open the Financial section.
- In the Available client funds box, click the protected funds total next to Protected funds to view all protected funds for the matter.
- Go to a matter.
- In the Dashboard subtab, open the Financial section.
- In the Available client funds box, click the protected funds total next to Protected funds.
- Click the pencil icon to edit a protected fund.
- Increase the amount or change the reason, then click Save changes.
- Go to a matter.
- In the Dashboard subtab, open the Financial section.
- In the Available client funds box, click the protected funds total next to Protected funds.
- Click Request fund release.
- Select the protected fund and a reason. Under Reason, select Release back to the client or Pay an invoice. For Pay an invoice, also select the invoice to pay.
- Optional: Enter a memo with more details about the release request.
- Click Request fund release.
Up next
- Create Client Funds Requests: Create a client funds request to collect an initial deposit or retainer.
- Release Client Funds: Return remaining client funds to your client or correct funds applied in error.