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Writing checks for your legal services out of a trust account

After you have created invoices for your clients you can see how much each client owes by looking at the client's balance in the Customers & Jobs list. Then write a check to yourself for services and costs from the Client Trust Account bank account. Generally, an attorney has to obtain client approval before doing this. When you write a check to yourself out of the Client Trust Account, you also reduce the amount in the Funds Held in Trust liability account.

  1. Go to the Banking menu and click Write Checks.

  2. Click the Bank Account drop-down list and choose Client Trust Account, or the subaccount for the specific client if applicable.

  3. Write yourself a check (pay to the order of your law firm).

  4. (Optional) In the check face Memo field, write a description of this transaction.

  5. In the detail area of the check, select the Funds Held in Trust liability account (for Account) and the client and case (for Customer:Job).

    This reduces the amount in the Funds Held in Trust liability account.

  6. Click Save & Close.

  7. Go to the Customers menu and click Receive Payments.

    Your invoice to the client remains open on QuickBooks' accounts receivable reports until you receive payment in QuickBooks of the check you just wrote.

  8. Click the Received From drop-down list and choose the client and case.

  9. In the Amount field, enter the amount of the check.

  10. Select the invoice to which you want to apply the payment.

  11. If the Deposit To field is displayed at the bottom of the form, click the Deposit To drop-down list and choose your checking account. If your Sales & Customers preferences are set to "Use Undeposited Funds as a default deposit to account," you will not see the Deposit To field; your deposit will instead automatically be added to your Undeposited Funds account and deposited later.

  12. When you receive your bank statement, reconcile your trust bank account(s) in QuickBooks the same way you would any other bank account.

See also

KB ID# H_V_RETAINERS_WRITING_CHECKS_FOR_LEGAL_SERVICES
12/7/2016 11:53:43 PM
QYPPRDQBKSWS01 9138 Pro 2017 9d8138