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Reckon/Quickbooks – Set up a Law Firm's books with Trust Accounts
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Published on Monday, 17 March 2014 12:00
A client called asking how to set up a Law Firm's books with Trust Accounts?
Setting up the books in Reckon for a Law Firm involves having the correct items and trust accounts to track your retainers and expenses for services offered, then you can run reports to track client activity and their retainer balance.
Set up the Client Retainer account:
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From the List menu, select Chart of Accounts.
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Click on the Account button at the bottom and select New.
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Select Other Account Types and select Other Current Liability.
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Click on Continue, the Add New Account window comes up.
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In the Account Name field, enter Client Retainers.
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Click Save & Close.
Set up a main trust bank account and then for each client who pays a retainer, set up an individual trust bank account as a sub account of the main trust bank account.
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From the List menu, select Chart of Accounts.
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Click on the Account button at the bottom and select New.
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Select Bank and click on Continue, the Add New Account Window comes up.
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In the Account Name field, enter Client (name) Trust Account.
Click Save & Close.
For further steps include setting up the items and income accounts for client billing when invoicing, such as upfront (retainer) payments, the cost of sales accounts you want. See link below for more where this info was drawn.
A Retainer Balance report breaks down the balance in your Client Retainers account by client (customer:job). You can customize the Reckon Customer Balance Summary report to view information about client retainers.
For the full how-to info and more detail see the Intuit site - http://support.quickbooks.intuit.com/support/Articles/HOW12863
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