Payments and Bank Accounts

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Accounts in Clio Manage are designed to mirror your real-life bank accounts at your financial institution for collecting payment on bills and retaining client funds. You can create two types of accounts in Clio—operating and client accounts. Client funds accounts retain funds in trust for clients. Operating accounts are for daily transactions.

Note: Only users with billing or administrator permissions can manage bank accounts.

Create new accounts

When creating a new bank account in Clio, you can select whether the account is an operating or client funds account. All non-client funds accounts are operating accounts. Once transactions have been applied to an account, account types should not be changed since this can cause account balancing inaccuracies.

  1. Go to Accounts.
  2. Select New account.
  3. Name your account and select the account type.
  4. Optional: Check the box for Connect this bank account to online payments and add financial details to connect the account to Clio Payments to accept payments directly from clients. Learn more below.
  5. Click Create bank account.
Note: You can also connect your bank account to the online payments platform after creating the account.

 

Connect or disconnect from online payments

When creating or editing a bank account in Clio, you also have the option to connect the account to Clio Payments. This allows you to collect payment for bills and sync transaction records with your accounting platform.

Connect to payments Disconnect from payments
  1. Go to Accounts.
  2. Click Connect to payments. You can also click the down arrow next to Edit and select Connect to online payments.
  3. Add your bank account numbers. Contact your financial institution for these numbers.
  4. Click Connect bank account.

 

Edit accounts

You can edit basic details of a bank account at any time. Once transactions have been recorded in an account, the account type should not be changed since this can cause account balancing inaccuracies.

  1. Go to Accounts.
  2. Click Edit
  3. Make your changes.
  4. Click Update Bank Account.

 

Delete accounts

Important: You can only delete accounts that do not have recorded transactions. If you need to delete an account with transactions, delete all the transactions first.

  1. Go to Accounts.
  2. Click the down arrow next to Edit and select Delete.
  3. When the warning prompt appears, check the confirmation box and select Delete.

 

Record vendor transactions

You can manually record funds out of your operating accounts to track payments to non-clients, such as payments to vendors related to your clients' cases. Once recorded, your operating account balance will show the deducted amount.

  1. Go to Accounts and select an operating account. You can also go to the Transactions subtab in a contact or matter.
  2. Click New transaction.
  3. Complete the required fields.
    • Under Amount, enter the amount that will be paid to the vendor as a negative number (e.g. -200).
    • Under Date, select the transaction date.
    • Under Account, check that the appropriate operating account is selected. The funds will be deducted from this account.
  4. Complete the remaining fields as necessary.
    • You are not required to select a client or matter, but completing these fields will allow you to track which client and matter the vendor payment is connected to.
    • Under Source/Recipient, enter the vendor's name to help you distinguish which vendor received the payment on the Transactions table and in relevant reports. 
  5. Click Record transaction.

 

Link transactions to disbursements

If your firm is required to show disbursements on transactions made from your operating accounts to third-party vendors for compliance purposes, you can link transactions to disbursements when recording the transactions. Once a disbursement is linked to a payment transaction, both will show on the Transactions table in the operating account that the funds were taken out of and in the client ledger and disbursement listing reports. 

Important: Linking transactions to disbursements is a requirement under section 25 of the Solicitors Account Regulations 2023 in Ireland. Check with your local jurisdiction if you are required to show linked transactions and disbursements to remain compliant.

Enable disbursement and transaction linking:

If your firm is located in Ireland or the UK, this feature is automatically turned on. If your firm is located in another country in Europe, the Middle East, or Africa and your are required to link transactions and disbursements for compliance reasons, you can turn this feature on by following the steps below.

  1. Go to Settings > Firm Preferences. 
  2. Select the Compliance subtab.
  3. Check the box for Linking disbursements is enabled. 

 

Link transaction to disbursement:

Before you can link a transaction to a disbursement, you will need to record the disbursements in a matter first. Learn more about adding disbursements here. Once a disbursement has been added to a matter, you can record a transaction to pay funds to a vendor and link the disbursement to that transaction.

  1. Go to Accounts and select an operating account. You can also go to the Transactions subtab in a matter.
  2. Click New transaction.
  3. Select the client and matter. 
  4. Under Disbursement, select the disbursement that you want to connect to the transaction.
    • The dropdown will show all disbursements for the matter. Disbursements that have already been linked to transactions will show £0.
    • You are not required to pay the entire amount of the disbursement in one transaction. You can always record multiple transactions for the remainder of the disbursement amount. 
  5. Complete the following required fields.
    • Under Amount, enter the amount that will be paid to the vendor as a negative number (e.g. -£200).
    • Under Date, select the transaction date.
    • Under Account, check that the appropriate operating account is selected. The funds will be deducted from this account.
    • Under Invoice reference, enter the reference for the payment. This field will only appear once a matter and disbursement are selected.
  6. Complete the remaining fields as necessary.
    • The Source/Recipient field cannot be changed. When you create a disbursement, you are required to select a vendor. This vendor is automatically added to the Source/Recipient field.
  7. Click Record transaction.

 

Export transactions

Once you have recorded transactions on your bank accounts, you can export transactions from a single bank account. You can also export transactions specific to a single matter or contact from the matter or contact’s Transactions subtab.

Note: Bank account transactions can be exported to CSV format, which can then be used with you preferred accounting platform.
Single bank account Single matter or contact
  1. Go to Accounts.
  2. Select Export transactions.
  3. Select the bank account, date range, and export format.
  4. Click Export Transactions.

 

Transfer funds between accounts

Each contact and matter in Clio have a Transactions subtab where you can record transactions and transfer funds between a contact and any of the contact’s matters or from one bank account to another.

Important: In order to stay Clio accounting compliant, be careful when transferring funds in client accounts.
Between accounts Between matters
  1. Go to the contact or matter’s Transactions subtab.
  2. Click Transfer funds.
  3. Select Between bank accounts.
  4. Complete the transfer information.
  5. Click Record transfer.

 

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