1) Decide your billing “governance model”

Clio bills move through defined states like Draft, Pending approval, Unpaid, and Paid. Draft and Pending approval are the “workbench” states. Unpaid is the post-approval state where you are sending to clients and collecting.

Your decision: How much structure do you want between time entry and “send it”?

Options that work well in practice:

  • Fast lane: Skip approval when generating bills (useful for flat-fee or very small matters). Clio explicitly allows skipping the approval process.

  • Standard lane: Draft → quick pre-bill review → approve → send. (This is where most firms land.)

  • Scaled lane: Use automation where it fits. Clio notes that bills can be automatically generated into Pending approval by Manage AI, and Manage AI’s billing automation is designed to produce payment-ready bills.

One governance detail to know up front: Clio notes you cannot view when a bill was approved or which firm user approved it. That is not a problem for every firm, but it matters if you have strict internal controls.

2) Choose your firm’s “edit policy” (this is where billing disputes are born or prevented)

Here is the practical rule:

  • Draft and Pending approval bills have full edit functionality by default, including adding/removing time and expenses.

  • Approved bills have limited edit functionality by default, and Clio’s help center explains that approved bills may need to be voided if you need to add or remove activities.

  • You can change the rules: Clio allows firms to enable “Allow editing of approved bills and trust requests” in Bill Settings if you want full editing for approved/unpaid bills.

Owner decision:
Do you want approved invoices to be largely locked (strong controls, fewer “quiet” changes), or editable (flexibility, but more process discipline needed)?

Also, know the difference between delete and void:

  • Draft or Pending approval bills can be deleted.

  • Approved bills and bills with full or partial payments can only be voided.

  • When bills are deleted or voided, the activities go back to an unbilled state and can be billed again.

That is not just bookkeeping trivia. It is the difference between a clean correction and a messy month-end re-run.

3) Make “getting paid” part of the invoice, not a separate scavenger hunt

Clio Payments is designed to keep payment inside the billing experience, including secure payment links and QR codes.

Clio lists supported client payment methods that include:

  • credit and debit cards

  • digital wallets (Apple Pay, Google Pay)

  • eCheck

  • ACH payments where the client initiates a bank transfer

Owner decisions to make:

  • Do you want every invoice to be payable online? (Most firms do, once they see the impact on collection speed.)

  • Do you want payment plans? Clio payment plans can collect recurring payments toward a balance, toward trust, or for ongoing services.

  • Do you want stored payment methods? Clio supports requesting and storing client payment methods for future bills and payment plans, with jurisdiction-based limits noted in their documentation.

And the spicy one:

  • Surcharging: Clio Payments supports surcharging to pass along credit card fees, with rules including a cap at 3% and additional requirements. This is heavily jurisdiction-sensitive, so treat it as a policy decision with compliance review, not a “click and hope.”

4) Trust accounting and evergreen retainers: protect compliance and stabilize cash flow

If your firm handles trust funds, Clio’s trust account management is built around the core compliance principle: trust funds are tracked separately from operating funds, and Clio notes you cannot charge interest or offer early payment discounts on trust funds.

If you want predictability, evergreen retainers are the business-of-law equivalent of a standing order:

  • Clio describes evergreen management as retaining and replenishing trust funds to pay for work and keep cash flow consistent.

Owner decision:
Where does evergreen make sense (practice areas, matter types, client profiles), and what minimum balance policy will you enforce?

5) Consolidated billing: one client, many matters, one bill

Consolidated billing is real (and it reduces invoice fatigue).

Clio defines a multi-matter bill as a single bill that includes activities for multiple matters belonging to one client, and it states you can combine multiple matters for one client onto one bill using bulk billing.

Important owner-level detail: Clio notes that when payment is applied to a multi-matter bill, it pays off the oldest-created matter first, then moves oldest-to-newest.

Owner decision:
If compensation credit, origination reporting, or matter-level profitability are sensitive topics at your firm, make sure everyone understands how consolidated payments apply.

6) E-billing is not optional for some clients, and Clio supports it

If you bill insurance carriers or corporate legal departments, “send PDF” is not the assignment.

Clio’s LEDES billing support includes downloading LEDES 1998B and 1998BI bills (including individual and bulk downloads).
Clio also supports UTBMS codes for time and expense entries for firms using LEDES billing.

Owner decision:
Do you want to standardize how timekeepers use UTBMS and classification codes, or let everyone freestyle and accept a higher rejection rate?

7) Reporting leveled up: custom reports and better billing exports

In October 2025, ClioCon messaging leaned hard into reporting and visibility. A LawNext recap of ClioCon 2025 lists “Custom Reporting & Roles” among announced features.

On the product side, Clio Manage now offers Custom Reports for “nuanced reporting needs,” giving firms access to more data and more control over filters.

Also, if what you really need is a client-facing roll-up, Clio’s “statements of account” export includes invoice amounts, payments, and balances due, and it can include interest, discounts, and credit notes in the total calculation.

Owner decision:
Pick the 3–5 financial questions you want answered every month and build reports around those. Your billing admin will thank you.

8) Don’t ignore the “money mechanics”: discounts, credit notes, tax, interest

Owners often ask, “Where did the revenue go?” The answer is usually hiding in adjustments.

Clio draws a clear line:

  • Discounts are applied on draft or pending approval bills.

  • Credit notes are applied to approved and unpaid bills and are primarily used for tracking write-offs.

Clio also supports interest rules via payment profiles for overdue bills.
And it supports applying up to two taxes on bills.

Owner decision:
Decide what your firm wants tracked as a discount (pre-approval adjustment) versus a write-off (post-approval reality). Then make it a policy, not a mood.

Owner “quick wins” that pay off fast

If you want the least pain for the most gain:

  1. Turn on online payments and make every invoice clickable and payable.

  2. Use bill reminders so collections is systematic, not personal.

  3. Use consolidated multi-matter bills for the clients who keep getting five separate invoices.

  4. Decide your approved-invoice edit policy and document it.

  5. Build one dashboard report: WIP aging, A/R aging, write-offs, online payment adoption, trust replenishment compliance. (Custom Reports exist for a reason.)

We are here to answer your questions

If you have questions about Clio Manage billing system feel free to contact us at (415) 284-2221 or fill out the form below.

2b1 inc. has been helping law firms since 1996.

We have been helping dozens law firms with Clio since 2016

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