Managing Trust Accounts & Trust Payments

In this article:

  1. Create a Trust Entry
  2. a) Create a New Trust Account

  3. Manage Matter-level Trust Accounts
  4. Pay Other Parties and Refunds From a Trust Account
  5. Transfer Trust Funds Between Matter Trust Accounts
  6. Allocate Trust Payments

Note: First ensure Trust Accounting is enabled under  Payments>Settings>Enable Trust Accounting.


Create a Trust Entry

Click on Payments>Trust.

Client-Matter - the Client-Matter for which Trust transaction will be made against.

Trust Account - will auto-populate in the Trust Account field if you have a Trust Account set up. If you need to set one up, click on the blue plus sign to create a new one. Creating a new account for a Matter does not create a new bank account, only a dedicated area to track funds specific to this Matter.

Create a new Trust account

Name - can be changed to anything you want, but by default, it will come up as Trust.

Bank Account - available Bank accounts will be displayed in a drop-down list. Choose the account you would like it to be associated with.

Matter Default? - this account will be used for this Matter.

Replenish Below - enter the minimum value for replenishment. So, if the specified amount drops below its value, the client would have to ‘replenish to’ the amount stated in the Replenish To field. This would automatically appear on their next invoice.  You must enter in a numerical value above 0.

Replenish To - this means the amount that coincides with any account rules a client has to abide by  (for example, a minimal account balance of $1000 is required for clients at all times in their trust account, so the Replenish To field would be $1000). But, you may allow the client to have as low as $800, for example, before notifying them to add more money to their account. 

AutoPay  Invoices from this Trust? - if you would like to automatically deduct the invoice amount from the trust account balance.

Active? -  ensures the account is active and enabled for use.

Transaction - choose between Deposit or Disbursement.  Deposit is money entering your account. Disbursement is money taken from the Trust account for anything other than invoice charges (e.g. paying court cost directly from a Trust account, or the case has ended but money is leftover in the Trust so is refunded to the Client). Selecting Disbursement will activate the Paid To field.

Date -  the Date this transaction will be recorded in the Trust account.

Paid To - this is mostly used for a Disbursement. Enter the name of the customer whom the balance has to be refunded.

Reference # - can be used to add a check number.

Amount - the Amount you are sending out.

Notes - can be used to enter a specific note regarding the transaction. These notes can be edited after you have saved this transaction by clicking on the ‘edit’ link next to the saved Trust transaction.

Once created:

Allocate - click the Allocate link to allocate the funds to invoices. (please see the lower half of this article to see how to fill in the allocation form).

Delete - to remove the entry.

Edit - notes made against a Trust transaction may be edited.

Transfer - transfers an amount from one Trust account to the next.


Manage Matter-level Trust Accounts

Users can set up Matter-level Trust Account settings.

Click on Clients>Clients & Matters>[matter name]>Trust tab.

Click on New Trust button to create a new trust account.

Name - can be changed to anything you want, but by default, it will come up as Trust.

Bank Account - available Bank accounts will be displayed in a drop-down list. Choose the account you would like it to be associated with.

Matter Default - this account will be primarily used for this Matter.

Replenish Below - enter the minimum value for replenishment. So, if the specified amount drops below its value, the client would have to ‘replenish to’ the amount stated in the Replenish To field. This would automatically appear on their next invoice.  You must enter in a numerical value above 0.

Replenish To - this means the amount that coincides with any account rules a client has to abide by  (for example, a minimal account balance of $1000 is required for clients at all times in their trust account, so the Replenish To field would be $1000). But, you may allow the client to have as low as $800, for example, before notifying them to add more money to their account. 

AutoPay Invoices from This Trust? - if you would like to automatically deduct the invoice amount from the trust account balance.

Active? - ensures the account is active and enabled for use.

Note: you cannot delete a Trust Account if there is anything tied to the account.

Users can view Trust Account details by running a Trust banking report.


Pay Other Parties and Refunds From a Trust Account

To pay a third party from a Trust Account whose charges are not represented on an invoice or if the balance has to be refunded to the client, click on Payments>Trust and create a disbursement entry against the desired trust or retainer entry:

Click on Payments>Trust.

Client-Matter - the Client-Matter to refund.

Trust Account - will auto-populate.

Transaction - choose between Disbursement.

Date - the date this transaction will be recorded in their account.

Paid To - specify who the refund is for.

Reference - can be used to add a check number.

Amount - amount to refund.

Once saved, the disbursement can be seen listed at the bottom of the screen. 

It will show you all transactions on that trust account and the last transaction, which is the disbursement, will show up at the very bottom.

Users can also view the disbursement by going under the Clients>Clients & Matters>[matter name]>Trust. At the bottom, it will show all the transactions, and the disbursement will show up with an ending balance of what is left in the trust account.

To view all transactions within a Trust, run a Trust Banking Report.


Transfer Trust Funds Between Matter Trust Accounts

*Check under  Clients>Clients & Matters>[Matter name]>Invoices tab for a clear view of Payments, Allocations, and Balances.*

Click under Payments>Trust screen.

At the bottom of the screen, there is a search feature. Ensure the search ' Client - Matter' field is set as 'Select All - Allocatable'. Leave the search dates open. Hit Search.

Next to the Trust payment you want to transfer, click on the downwards arrow next to the ' Allocate' link, and reveal the 'Transfer' link.

A window will pop up allowing you to specify the Trust transfer details.


Allocate Trust Payments

*Check under Clients>Clients & Matters>[Matter name]>Invoices tab for a clear view of Payments, Allocations, and Balances.*

Click under Payments>Trust screen.

At the bottom of the screen, there is a search feature. Ensure the search ' Client - Matter' field is set as 'Select All - Allocatable'. Leave the serach dates open. Hit Search.

Next to the Trust payment you want to allocate, click on the ' Allocate' link.

Allocate Oldest First - allocates the entire amount to the unpaid oldest matter.

Compute Equal Proportions - equally distributes payment amount between all matters.

Allocation Date - the date the funds are to be applied to unpaid balances.

Click on the Transfer & Allocate button.

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