Clio Xero Integration Guide [2026 Updated]

Connecting your legal practice management tool directly to your accounting software is one of the most effective ways to reduce administrative work and improve your firm's financial health. If you use Clio for case management and Xero for accounting, you can create a powerful, automated workflow. This guide provides clear, updated steps to connect Clio and Xero, detailing how to sync invoices, expenses, and payments to keep your firm’s records accurate and up-to-date.

Why Integrate Clio and Xero?

Running a law firm involves juggling case-specific tasks with general business operations. The integration between Clio and Xero bridges the gap between your legal practice management and financial management. Instead of manually entering every invoice or payment into two different systems, the integration does the work for you.

Here are the key benefits you can expect:

• Eliminate Duplicate Data Entry: When you generate an invoice in Clio, it automatically creates a corresponding invoice in Xero. When a payment is recorded in either system, it syncs to the other. This significantly reduces the time your staff spends on administrative tasks.
• Improve Financial Accuracy: Manual data entry is prone to human error—a typo can lead to incorrect financial statements, billing disputes, and compliance issues. Automating the data flow ensures that your financial records in Xero precisely reflect your billing and expense information in Clio.
• Get Real-Time Financial Visibility: With an active sync, your accounting records are always current. You can log into Xero at any time and see an accurate picture of your firm's accounts receivable, revenue, and expenses. This helps you make better-informed business decisions without waiting for month-end reconciliation.
• Simplify Trust Accounting: For law firms, managing trust accounts is a critical compliance requirement. While Clio's trust accounting features manage the legal side, syncing financial data to Xero ensures all transactions are properly recorded for bank reconciliations and financial reporting, making audits much smoother.

Preparing for the Integration: What You Need

Before you begin the setup process, a little preparation will ensure everything goes smoothly. Double-check that you have satisfied these prerequisites.

• Active Clio and Xero Accounts: You must have active subscriptions for both Clio Manage and Xero. The integration is not available on all pricing tiers, so confirm your plan supports third-party connections.
• Administrative Privileges: You need to be an account administrator in both Clio and Xero to authorize the connection and configure the settings. If you are not an administrator, you'll need to ask someone who is to complete the setup.
• Consistent Chart of Accounts: Before syncing, review your Chart of Accounts in Xero. Ensure you have appropriate accounts set up for legal fee revenue, reimbursable expenses, and any other income or expense categories your firm uses. A well-organized Chart of Accounts makes mapping data from Clio much easier and your financial reports more meaningful.
• Check for Existing Data: If you've been using both Clio and Xero separately for some time, decide on a "cut-off" date. Syncing historical data can sometimes create duplicates if invoices were already entered manually in Xero. For a clean start, many firms choose to begin syncing from the current date forward and handle historical records separately.

A Step-by-Step Guide to Connecting Clio and Xero

Clio offers a native integration with Xero, which is the most straightforward and recommended method. You can set it up directly from your Clio Manage account in just a few minutes. Follow these steps to get your accounts connected and synced.

Step 1: Locate the Xero Integration in Clio's App Directory

First, log in to your Clio Manage account. On the left-hand navigation menu, find and click on the "App Directory" or "Integrations" tab. This is Clio's marketplace for third-party connections. Use the search bar to find "Xero." Once you see the Xero listing, click on it to open the integration page.

Step 2: Authenticate and Connect Your Accounts

On the Xero integration page, you will see a prominent button labeled "Add Integration" or "Connect to Xero." Click this button. You will be redirected to the Xero login page. Enter your Xero administrator credentials and sign in.

Once you log in, Xero will ask you to authorize Clio to access your company's data. This permission is necessary for the two applications to communicate and transfer information. Review the permissions and click "Allow access" to continue. After authorization, you will be redirected back to Clio Manage to complete the setup.

Step 3: Configure Your Sync Settings

This is the most important part of the setup, as it determines how information flows between the two systems. Clio gives you control over what data syncs and how it is mapped to your Xero accounts. You will typically be presented with several configuration options:

• Select a Bank Account for Payments: Choose the Xero bank account where you want payments recorded in Clio to be deposited. For instance, you might select your firm's primary "Operating Account."
• Map Revenue Accounts: Decide which revenue account in your Xero Chart of Accounts should be credited when an invoice is paid. Most firms have an account like "Legal Services Revenue" or "Fee Income."
• Configure Expense Syncing: If you track billable expenses in Clio, you can choose to sync them to Xero as bills that need to be paid. This is helpful for tracking reimbursements and managing firm overhead.
• Hard vs. Soft Credit for Invoices: You may see an option to sync invoices as "Hard Credits" (finalized) or "Soft Credits" (draft). Generally, syncing finalized invoices is best practice to avoid discrepancies.

Take your time with these settings. A thoughtful configuration ensures your financial data is organized correctly from the start. You can always come back and adjust these settings later if needed.

Step 4: Perform an Initial Sync and Verify the Data

Once you are happy with your configuration, save the settings. The integration is now active. Some integrations will prompt you to run an initial sync, while others may start syncing data automatically within a few minutes. To be safe, navigate to an invoice you recently created in Clio. An option to "Sync with Xero" should now be available from the invoice menu.

After initiating a sync for a few invoices and payments, log in to your Xero account. Navigate to the "Sales" and "Invoices" sections to confirm that the data from Clio appears as expected. Check that the client names, invoice numbers, amounts, and payment statuses are all correct.

What Data Syncs Between Clio and Xero?

Understanding exactly what information is shared between the two platforms helps you manage your workflow effectively. The native Clio to Xero integration typically syncs the following types of data:

• Contacts: When you create an invoice for a client in Clio, the client's contact information is sent to Xero to become a customer contact. Subsequent invoices for the same client will be associated with the existing contact in Xero.
• Invoices: Approved invoices created in Clio are synced to Xero as "Awaiting Payment." This includes line items, quantities, rates, and totals.
• Payments: When you record a payment against an invoice in Clio, the payment information is synced to Xero and applied to the corresponding invoice. Similarly, if you record a payment in Xero, the status will update in Clio.
• Credit Notes: If you issue a credit note or write off an invoice in Clio, this action will sync to Xero, ensuring that your accounts receivable reports are accurate in both systems.
• Billable Expenses: Expenses marked as billable within a matter in Clio can be included on invoices and will sync over to Xero as part of the invoice line items.
• Sales Tax Data: Tax rates applied to invoices in Clio are carried over to Xero, making sure your sales tax liability reports are correct for filing purposes.

Troubleshooting Common Integration Issues

Even with a well-designed native integration, you may occasionally encounter a hiccup. Here are some common issues and how to resolve them:

• Sync Errors or Delays: If you notice data isn't showing up in Xero, a good first step is to manually trigger a sync from within Clio. If that doesn't work, navigate to the integration settings and check the "Sync Status" or "Error Log." This log often provides a clear reason for the failure, such as invalid permissions or an incorrectly mapped account. You may need to disconnect and reconnect the integration to re-authenticate the connection.
• Duplicate Contacts or Invoices: This usually happens if you were using both systems before integrating and had entered the same information manually in both. To prevent this, ensure client names are identical in both Clio and Xero before the initial sync. If duplicates are created, you will need to merge the duplicate contacts in Xero and void the duplicate invoices.
• Payments Not Mapping Correctly: If payments are syncing but not being applied to the correct bank account in Xero, return to the integration's configuration settings in Clio. Verify that your payment mappings are pointing to the correct bank account in your Xero Chart of Accounts and save the changes.

If you're still unable to resolve an issue, don't hesitate to consult the help documentation from both Clio and Xero or reach out to their support teams.

Final Thoughts

Connecting Clio and Xero automates your firm's financial data flow, giving you more accurate records and freeing up time to focus on your clients. By following the steps outlined in this guide, you can set up a reliable integration that makes managing your firm's finances much more straightforward and efficient.

Automating administrative tasks clears your schedule for billable work and strategic planning. When complex client questions arise involving the tax implications of settlements, business structures, or multi-state filings, you need fast, accurate answers. For those moments, Feather AI provides instant, citation-backed tax research, helping you deliver audit-ready advice without hours of manual digging through complex regulations.