Xero and Clio

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Xero is a cloud-based accounting software. With Clio’s integration with Xero, you can sync your Clio contacts, time and expense activities, bills, credit notes, interest, and Clio Payments transactions to Xero for accounting purposes.

Set up integration

Once you set up the Clio integration with Xero, your Clio contacts and bank accounts will start syncing automatically. The contact sync is bi-directional, which means that any changes made in Clio will update in Xero, and changes in Xero will update in Clio. Bank accounts, on the other hand, sync one-way from Clio to Xero, which means that changes in Xero will not be made in Clio.

Note: You can only set up the Clio integration with Xero if you have a Xero subscription and account. 

  1. Go to Settings > Bill Syncing.
  2. Click Connect next to Xero.
  3. Click Link Xero Account.
  4. Log in to Xero and authorize the integration.

 

Set up invoice and payment sync

When setting up the sync, you can enable the option to send time entries, expenses, bills, credit notes, interest, and payments to Xero. This sync is one-way, which means that any changes in Xero will not update in Clio, but changes in Clio will update in Xero.

Once the invoice sync is set up, all Clio invoices will sync to Xero. After this initial setup, any invoices that you create, edit, add a payment, or add a credit note in Clio will sync to Xero every five minutes.

Tip: Learn more about the Xero platform on Xero support and the Xero Community.
  1. Go to Settings > Bill Syncing > Xero.
  2. Check the box for Sync bills from Clio to Xero. 
  3. Optional: By default, only unpaid approved bills and paid bills will sync to Xero. If you want to sync draft and voided bills as well, uncheck the box for Only sync bills that are "Unpaid" or "Paid."
  4. Select the appropriate Xero account for time entries, expenses, interest, and credit notes. These entries will be imported into the selected account.
    • Clio will only recognize a Xero account using the Xero account code. You can configure account settings in the Xero platform in your chart of accounts. Consult your accountant if you have questions about which accounts you should link to Clio.
  5. To sync payment transactions, select a bank account under Match Clio payments to Xero bank account. Select None if you do not want to sync any payments to Xero.
    • Clio will only match bank accounts with unique codes. To match your Xero bank account to Clio, edit the bank account in Xero and add a unique code. Learn more about editing your bank account in Xero here and more about Xero unique codes and chart of accounts components here.
  6. Select the date range for when invoices should sync from Clio to Xero.
  7. Click Update Sync Settings.

 

Sync hard cost expenses

The hard cost expense sync is one-way from Clio to Xero, which means that changes in Xero will not update in Clio, but changes in Clio will update in Xero. Once you enable the sync and create a hard cost entry in Clio, Xero will automatically record a "spend money" transaction, eliminating the need to manually record entries in both Clio and Xero, while reducing costly accounting errors. A "spend money" transaction is one of two ways you can record billable expenses in Xero. Learn more here.

Once the sync is set up, Clio will sync to Xero approximately every 15 minutes. If you update a hard cost in Clio, the hard cost will update in Xero unless you reconciled the transaction in Xero. Xero will always block updates on reconciled transactions. If you delete a hard cost in Clio before the next 15-minute sync, the entry will not be created in Xero. If you delete it after the sync, you will need to manually delete the entry in Xero. 

Note: Before setting up the sync, you will need to enable the hard and soft cost setting in Clio Manage and then enter a value in the Vendor field when creating a hard cost expense entry. Learn more about enabling the setting here and more about creating hard costs expenses here.

  1. Go to Settings > Bill Syncing > Xero.
  2. Ensure that the Sync bills from Clio to Xero box is checked.
  3. Under Sync Hard Cost Expenses, check the box for Sync Hard Cost Expenses.
  4. Select a date for when hard costs should sync from Clio to Xero, the hard cost expense account in Xero, and the Xero account for the bank account.
    • All hard costs created on or after this date will sync to Xero.
  5. Click Update Sync Settings.

 

View sync errors

You can view sync errors, including hard cost and invoice sync errors, in the Xero settings page in Clio Manage.

  1. Go to Settings > Bill Syncing > Xero.
  2. Scroll down to Sync Failures (located under Sync Status) to view errors.

 

Perform trust account reconciliation

Tip: Clio offers full trust account reconciliation right in Clio Manage. Learn more here.

Due to limitation in place by Xero, trust account transactions cannot be synced from Clio to Xero. If you need to perform trust account reconciliation, you can generate the trust ledger, client listing, and bank account activity reports in Clio and then compare the amounts to your bank statement or the information in Xero.

  1. In Clio Manage, go to Reports > Reports.
  2. Click Client under Categories.
  3. Select the Client ledger report.
  4. Choose your parameters
  5. Select Generate report.
  6. Repeat steps 2, 4, and 5 for the trust ledger and bank account activity reports.
  7. Go to Xero and compare the amounts.

 

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