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Recording Trust Deposits in LeanLaw

How to record trust deposits in LeanLaw — including the Funds Held in Trust page, required deposit fields, what happens in QuickBooks Online, and how to record deposits directly in QuickBooks Online when needed.

Recording a trust deposit in LeanLaw creates the appropriate accounting entries in QuickBooks Online automatically — a deposit to the IOLTA bank account and an increase to the client's trust liability account. This two-step QuickBooks Online process happens with a single action in LeanLaw.

📋 Physical deposit still required: Recording a deposit in LeanLaw handles the accounting — it does not physically move funds. You still need to make the actual bank deposit of the check or transfer. LeanLaw records the transaction; your bank receives the money.

 

Where to Record a Trust Deposit

There are three ways to access the deposit form:

  • From the Trust Account tab: Go to Billing → Trust Account tab. Click Deposit Funds to open the deposit modal. This is the hub for all trust accounting activity.
  • From within a client's trust record: Click any client in the Trust Account tab to open their specific account. Then click Deposit Funds. This pre-fills the client field for you.
  • From the quick-actions menu: Click the + button in the upper right corner from anywhere in LeanLaw and select Trust Deposit.

 

Deposit Form Fields

Field

Notes

Client

Required. The client whose trust account will receive the deposit.

Matter

Required. The specific matter the deposit is associated with.

Amount

Required. The deposit amount.

From

Required. The source of funds — check number, credit card, ACH reference, or 'Cash'. Trust accounting regulations require explicitly recording the source of every deposit. This field populates the Memo in QuickBooks Online.

Use

Optional. A description of the purpose of the deposit (e.g., 'Initial retainer', 'Settlement proceeds'). Added to the QuickBooks Online Memo field alongside the From field.

Date

The date of the deposit. Defaults to today.

 

⚠️ The 'From' field is required by trust accounting regulations: Every trust deposit must have its source explicitly documented. This is not optional — record the check number, ACH trace number, or cash for every deposit. This data is essential for three-way reconciliation and any state bar audit.

 

What Happens in QuickBooks

When you click Record Deposit in LeanLaw, two entries are created in QBO automatically:

  • Deposit in the IOLTA/Trust bank account: Records the inflow of funds to the trust account.
  • Credit to the client's trust liability sub-account: Increases the 'Funds Held in Trust' balance for that specific client, recording the firm's obligation to hold and return those funds.