A pre-existing client brings a new matter to the firm, and wishes to have their trust accounts separate. How does the firm adjust the trust accounts? Let's jump in.
1. Switch Accounting to Matter Level
In the Access and Billing of the intended Matter, switch the Accounting level to the Matter Level.
2. Setup the Sub-Account
Create a new Sub-Customer, which is necessary for tracking Trust at the Matter Level.
3. Setup the Trust Account
Similar to a new Client, you'll need to create a new Trust Account for the Matter.
There are now two separate Trust accounts for the Joyful Toy Company client. Both are accessible in QuickBooks Online, but deposits from LeanLaw can only be made to the sub-account (Acquisition).
4. Migrating Funds
If you have remaining funds from the Client-Level Trust, you'll need to migrate them to the Matter-Level account.
To do so, create a new Journal entry and Debit/Credit the funds across the accounts.
If you are migrating the funds before invoices have been paid from the Client Trust account, it is acceptable to instead delete the Client liability account and create/deposit in the new Matter account.