The section below goes over the following steps you need to take to set up a trust account in QuickBooks Online and Clio. This ensures end-of-month financing is pain-free and your finances are in line with legal ethics requirements. With QuickBooks trust accounting for lawyers, transaction syncs are fast and accurate. An automated trust workflow ensures that you reconcile amounts in trust between Clio, QuickBooks Online, and your associated bank accounts. You can also understand staff performance and determine compensation by linking staff names to billable hours and exporting to QuickBooks Online. Financial data management and reporting is simple and accurateīy using Clio with QuickBooks Online, you can sync trust transactions, along with contacts, invoices, and financial information seamlessly between both tools-eliminating duplicate data entry. In QuickBooks Online alone, it takes three different reports to see these amounts. The matter dashboard in Clio gives you an instant overview of the financials, including work in process, outstanding balance, and matter trust funds. You need to manually calculate the trust balance and add it to each client’s invoice. QuickBooks Online alone does not offer this option on an invoice. In Clio, choosing a bill theme automatically includes the current trust balance you want on the invoice. Clio helps ensure you’re including a client’s trust balance in their invoiceĬlio has another trust accounting feature frequently required by state bar associations: Including a client’s trust balance on their invoice. This means one client was using another client’s money-signaling a violation of a lawyer’s fiduciary responsibilities. When this happens, it says the law firm spent more money out of trust than the client had in trust. Without this protective feature, a client’s ledger report can show a negative balance. QuickBooks Online alone does not have a feature to prevent the firm from applying more trust funds than a client has available. After the trust payment is applied, the client will have an outstanding balance owed of $252.00. Clio will only allow you to apply $3,500 toward the invoice payment when you pay with trust funds. When you invoice a client in Clio and pay the invoice with trust funds, Clio does not allow you to apply a payment from the trust for more money than the client has in trust.įor example, let’s say a client has a matter trust balance of $3,500, and this month’s invoice is for $3,752. Your client ledger report lists the client’s deposits and withdrawals activity for their specific trust account. Clio ensures you aren’t using more money than what is in trust For example, when used with Clio, QuickBooks Online ensures you keep your trust funds in balance. These features are designed to keep you compliant with state bar rules and regulations. How Clio and QuickBooks benefits lawyers Enjoy exclusive trust accounting features with ClioĪlthough QuickBooks trust accounting for lawyers makes life easier, several trust accounting features are built into Clio that do not exist in QuickBooks Online. BANK RECONCILIATION QUICKBOOKS TUTORIAL HOW TOIn this blog post, we’ll show you how to do accurate and compliant QuickBooks trust accounting with Clio-from account setup to syncing data and reporting. BANK RECONCILIATION QUICKBOOKS TUTORIAL SOFTWAREPaired with legal practice management software like Clio Manage, streamlining your law firm’s accounting processes and keeping all your information up to date becomes easy. Quickbooks is accounting software that enables lawyers to automate accounting tasks, manage billing, and project business costs. With the right tools, trust accounting can become a less daunting responsibility. Each jurisdiction has its own set of rules and regulations, so you need to be diligent in your processes. When done inaccurately, the consequences of bad trust accounting can be severe. Trust accounting is at the heart of the fiduciary responsibility a lawyer has with their client.
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