Hello, I have just finalized my first settlement at my law firm. How do I classify:1) the check intake2) the payment to client3) the payment for costs owed4) my pay

Here’s how to classify in QuickBooks:

1. The check intake: Record it as a deposit into your trust account.

2. Payment to the client: Record it as an expense or withdrawal from the trust account.

3. Payment for costs owed: Categorize this as a reimbursement of costs.

4. Your pay: Record it as income or an owner’s draw depending on how your firm is set up.

Make sure everything ties back to your trust account if you’re using one!

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