Here are some tips for trust accounting, which will help you avoid getting in trouble!

Rule # 1 - Only receipt funds you know you have.

  • Import bank statements and matching funds received to income invoices.
  • Process Payments to receipt cash/cheques received. ¬†Use Bank Deposits to keep track of which funds are deposited together.
  • Where there is no income invoice available to match to, there are 3 options:
  1. raise an income invoice - for example, generate the next rent invoice
  2. reconcile funds to the tenancy ledger
  3. reconcile funds into the suspense ledger
  • Check if any amount shows as an 'un-presented deposits' on the trust account home screen - this is receipts for funds which have not yet been banked but are part of your ledger balances.
  • Fees based on rent receipted or money into an account will be raised automatically.

Rule # 2 - Process all funds you want to pay out in the software first, then at the bank.

  • Expense invoices need to be entered to be able to disburse, efficient managers enter these as they are received.
  • Fees, Income Credit notes and Expense Invoices need to be disbursed before they will be available to match to bank statement transactions.
  • the option to process tenancy ledger refunds is in the tenancy ledger.
  • Use the bank payment file generated during the disbursement to make the payments with your bank - this ensures accuracy.

Rule # 3 - Don't let your suspense ledger get out of hand.

  • regularly review the tasks for funds held in the suspense ledger, where possible resolve these.
  • the suspense ledger balance can be positive or negative, if it falls too far negative you risk overdrawing your account when disbursing other ledgers.
  • Utilise the notes section on suspense ledger tasks to help other users understand why an item is unresolved.
  • the best way to resolve bank fees taken out of your client or trust account is to deposit the same amount back into it from your trading account.

Rule #4 - Keep each month separate.

  • always close the period as soon after it ends as possible.

  • never import or process payments for funds received in a new period until the close of period has been done.

  • the financial summary report divides transactions into the columns for each month based on the monthly close.
  • the date the period is closed is recorded, it looks better if you have done it on time.

Suggested daily tasks to complete:
  1. download new transactions from the bank, import and reconcile against income invoices and previously disbursed amounts;
  2. check the dashboard and action reminders, rent arrears and inspection notices;
  3. complete maintenance tasks, and add more detail to follow the workflow through to entering expense invoices;
  4. enter expense invoices for any other bills received, the bulk invoice attachment uploader is useful if you want to delegate the task of scanning and uploading;
  5. process disbursements for any amounts you need to pay out, upload the bank payment file created to ensure accuracy at the bank.