Scenario 1: Adding trust liability ledger entries to QuickBooks.
In this situation, we assume there is an active trust bank account within QuickBooks. It represents the total sum of monies held on behalf of your clients. The task is now to match this asset account with a trust liability account.
That task requires two steps. First, within the trust liability ledger, a client and matter need to be established. Second, an opening balance needs to added to the liability account representing the money you currently are holding on behalf of your client.
Setup the trust/retainer accounts within LeanLaw and add an opening balance.
Setting Up Trust when the matter client and matter is created within LeanLaw.
- From the Matter tab, select the Matter.
- From the Access and Billing Tab, use the "Setup Trust Accounting" tab.
- Using the “Opening Balance’ tool, add the initial trust amount for this matter. LeanLaw will execute the appropriate journal entry within QuickBooks.
Adding a trust liability account to a LeanLaw matter.
Adding an opening balance to a trust liability account. Use this when the trust checking account already is holding the client's retainer.