![]() An immediately realized problem is that this bank account may hold funds from a large number of clients/third parties. This is a bank account that will be reconciled each month. If such were to happen, penalties are severe even to the point of suspension of licenses or disbarment.Īs many law firms and real estate agencies use QuickBooks® for bookkeeping, we’ve developed a Chart of Accounts and procedures for our clients to use to satisfy their bookkeeping needs for these accounts.īecause the trust funds cannot be comingled with company funds, open a separate bank account and list it separately in the Chart of Accounts, i.e. Careful record-keeping is required to demonstrate that no improprieties occur in the handling and managing of these funds. A separate bank account is set up to hold the funds. The monies belong to the clients/third parties and cannot be co-mingled with company funds. ![]() The purpose is to safeguard these funds from loss. Managing Trust Accounts (Iolta Accounts) with QuickBooks®Īttorneys and real estate agents often hold client or third party funds in trust and are responsible for tracking the receipt and dispensation of these funds.
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