5 Payment Workflows Your Law Firm Must Test Before August 31 as the Clio–LawPay Integration Ends

Executive Takeaway: On August 31, 2026, the longtime integration between Clio and LawPay comes to an official end. While both platforms will continue operating independently, the automatic data bridge connecting them will stop. To prevent administrative bottlenecks, unapplied funds, or compliance errors, test your firm’s payment workflows before the deadline hits.

A payment workflow feels invisible—right up until it breaks.

For years, law firms using Clio and LawPay enjoyed automated background syncing: a client pays an invoice online, LawPay processes the transaction, and Clio automatically updates the client ledger, closes the open invoice, and mirrors the data to QuickBooks.

After August 31, that automatic bridge goes away.

Whether your firm decides to migrate to Clio Payments or continue using LawPay as a standalone processor, your billing and accounting setup will change. Waiting until September 1 to see what happens will result in manual data entry, missed billings, and trust account headaches.

Here is your 5-step testing checklist to ensure your cash flow remains completely uninterrupted.

The 5-Workflow Test Checklist as the Clio–LawPay Integration Ends

  [ 1. Invoices ] ──► [ 2. Trust ] ──► [ 3. Operating ] ──► [ 4. Recurring ] ──► [ 5. Refunds ]

1. Invoice Payments

• What to Test: Send a test invoice to an internal account and execute a live online payment.

• What to Look For: Does the payment link redirect smoothly without throwing an error? Does the payment automatically mark the bill as "Paid" in Clio, or does your staff have to manually post the entry?

• The Risk: Outdated payment links on invoice templates, websites, intake forms, or client portals will fail or drop client payment confirmations.

2. Trust (IOLTA) Deposits

• What to Test: Process a retainer deposit or advance fee payment through your primary payment portal.

• What to Look For: Confirm that 100% of the gross funds land directly in your Trust/IOLTA bank account without merchant fees or processing charges being netted out.

• The Risk: In legal accounting, processing fees deducted from a trust account violate state bar compliance rules. Fees must always be debited separately from your operating account.

3. Operating Account Deposits

• What to Test: Execute an earned fee payment for completed work.

• What to Look For: Verify that the net settlement reaches your operating account and that processing merchant fees are correctly logged as an expense in your general ledger (QuickBooks Online), rather than netting against gross revenue.

• The Risk: When operating deposits land as one lump sum from a merchant processor, un-itemized deposits distort your Profit & Loss statement and hide merchant costs.

4. Recurring Payments & Payment Plans

• What to Test: Audit all active client payment plans and automated subscription billings.

• What to Look For: Are stored credit card profiles and recurring payment schedules migrating cleanly to your new setup, or do they require client re-authorization?

• The Risk: Stored payment profiles often do not transfer automatically between third-party processors. If unaddressed, recurring payments will bounce on September 1, stalling your cash flow.

5. Refunds, Adjustments, and Chargebacks

• What to Test: Process a partial refund or test a transaction adjustment.

• What to Look For: Where is the refund debited? How is it reflected on the client matter in Clio? If a chargeback occurs, is the fee debited from Operating (where it belongs) or accidentally pulled from Trust?

• The Risk: Handling a chargeback incorrectly on a trust transaction can cause an accidental overdraft in your IOLTA account, triggering mandatory bar notification.

https://www.youtube.com/watch?v=CBkEijh_lZ0&t=3s

Summary: Automated vs. Manual Realities

Workflow Scenario	Integrated Automation (Pre-August 31)	Un-Synced / Un-Tested Setup (Post-August 31)
Invoice Settlement	Payment posts instantly to Clio & QBO.	Invoices stay "Open"; staff manually posts entries.
Trust Retainers	Gross retainer routes cleanly to IOLTA.	Risk of processing fees netting against client trust funds.
Payment Plans	Runs automatically on schedule.	Stored profiles drop; recurring charges fail silently.
Month-End Close	Quick 15-minute verification.	Multi-hour detective project matching bank lines to matters.

3 Diagnostic Questions for Managing Partners

Before the August 31 deadline arrives, ask your firm administrator or accounting lead:

1. "Have we mapped every active payment link on our website, invoice templates, and engagement letters?"

2. "Are our recurring client payment plans set up to run automatically on September 1 without dropping?"

3. "Who is responsible for verifying that trust deposits land gross in our IOLTA account during the transition?"

Don't Wait for Payment Issues to Appear

A software breakup doesn't have to become an operational crisis. By testing these five workflows today, you can eliminate billing friction, protect your client trust accounts, and ensure your financial records stay accurate and decision-ready.

Spend Less Time Untangling Payment Workflows and More Time Growing Your Practice.

Unsure how the Clio–LawPay transition will impact your firm's trust accounting, billing pipeline, or monthly financial reporting?

[Schedule a Financial Workflow Review with TLTurner Group Today]