How To Set Up Escrow Account In Quickbooks

QuickBooks is a powerful program used past small to mid-sized companies.  Information technology is a program used by many different industries.  QuickBooks usually needs to exist tweaked a bit to work with your industry.

Attorneys are unique due to the American Bar Association'south specific accounting rules for the use of retainer (IOLTA) accounts.

When setting up QuickBooks for the first time you lot can choose a default chart of accounts for a legal firm. Here's how you set up and track an IOLTA account.

Setting Up Tracking for IOLTA Business relationship in QuickBooks

1. Prepare upwards bank account for each physical IOLTA account
2. Prepare current liability account  for each physical IOLTA account
3. Every transaction should include Client: Job (Client)

Receiving IOLTA Funds

1. Eolith funds to the IOLTA Account – Banking – Brand Deposits
2. Brand sure Deposit To Box is filled with the IOLTA Account
3. Received from box is always the customer
4. The From Business relationship is always the liability account that matches the IOLTA business relationship
5. Fill in other sections as advisable

Invoice The Client

1. Generate an invoice that reflects the time and expenses for the matter – Customer – Create Invoice
2. Write a check to your firm.
3. The account volition be the liability account
4. Include the client proper noun nether Client/Job
5. Receive payment on the invoice – Client – Receive Payment
6. Go to Banking – Brand Deposits to eolith the check.

Tracking the IOLTA Residual

1. Click on Reports – Customer Reports – Summary
2. Alter Dates to All
3. Alter Display rows past to Customer
4. Click Advanced and modify Display Rows to Non-Zero
5. Click on Filters Tab and change the Account to Trust Liability
6. Click on Header/Footer Taxation to give the report a meaningful title
7. Click OK to open the written report
8. Memorize Written report

Creating Item Written report to Track IOLTA Balance

1. Click on Reports – Custom Reports – Transaction Detail
2. Change Dates to All
3. Change Full past to Customer
4. Nether Columns, scroll down to uncheck Clr.
5. Click on the Filters tab and change the Account to Client IOLTA Liability
6. Click on the Header/Footer tab and requite the written report a meaningful title
7. Click OK to open the report
8. Memorize report

Sheltra Revenue enhancement & Bookkeeping does all-encompassing Quickbooks training for all industries and visitor sized. We can teach a whole classroom of students, or provide individual training.

Diana Sheltra, EA is advanced certified in the desktop version of QuickBooks equally well every bit the online version. We have a staff of qualified QuickBooks trainers.  Contact us to make an appointment for a free consultation or just volume your preparation and then you lot can get started, or better your existing bookkeeping system.

How To Set Up Escrow Account In Quickbooks,

Source: https://www.sheltratax.com/blog/2016/09/quickbooks-for-legal-firms-iolta-set-up-and-tracking/

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