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MBP2019
November 20, 2019
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Funds Held in Trust Account Setup - by client

  • November 20, 2019
  • 2 replies
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The best method to correctly allocate Funds held in Trust for a new QBO company?  We need to correctly report the client balances that substantiate the opening balance of the Trust bank account. 

 

In other words, the client will begin QBO 01/01/20.  When syncing the Trust account, an opening balance will be identified from the bank feed.  This balance needs to be allocated among the clients while also hitting the Other Current Liability Account - Funds held in Trust.  What is the cleanest way to record this setup?

 

Can't use a journal entry since detail cannot be broken down by client.  This is the first time I have encountered trying to correctly state the client funds held in trust for an opening balance.  Any advice would be appreciated!

Cheers,

Melissa P.

 

Best answer by Rustler

The work flow is and always has been enter transactions, download banking, match. Intuit promotes the banking download as doing it all for you, but .....

use make deposits,
on each line select the customer name, the liability account, and the amount for that customer
save the deposit

 

then download banking and match the deposit

2 replies

Rustler
RustlerAnswer
November 20, 2019

The work flow is and always has been enter transactions, download banking, match. Intuit promotes the banking download as doing it all for you, but .....

use make deposits,
on each line select the customer name, the liability account, and the amount for that customer
save the deposit

 

then download banking and match the deposit

    A
    annaliza
    January 5, 2020

    Can you tell me how you are accurately reflecting multiple client balances and activity within the trust account in QBO? Thank you.

      L
      laurasayersbytwerk
      January 9, 2020

      Yes, I am having the same problem.  client is a non-profit using a payee program and holding funds in trust for disadvantaged clients. Our challenge is now to stop cutting checks for payment and begin using a treasury system we upload a csv file to.  Clients will now have their own debit/credit prepaid card to use for expenses.  Getting the report and .csv file to cooperate has been a beast. Anyone out there that can help me not have to reinvent the wheel?

       

      Thanks! Laura

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