Paying with Trust allows a firm to use a client's Trust funds to pay an invoice of any services or fees that have been billed.
Before billing, the client needs to have a Trust account, and deposited funds. For more information, check out How to Set Up and Deposit Client Retainers.
Note: User permissions in LeanLaw affect the ability to work with trust funds. If trust fund payment permissions are deactivated for a user (e.g., paralegals, attorneys), they will be unable to apply trust funds toward paying invoices. Ensure appropriate permissions are set for all users who need to process trust payments.
Once the invoice has been created and sent to QuickBooks, it is now payable via Trust in LeanLaw. There are two ways to do this.
Method 1: Trust Payment from the Trust Accounts tab
1. Click the Billing Tab
In LeanLaw, click on the Billing tab:
2. Navigate to the Trust Account Window
Inside the Billing page, navigate to the Trust Account on the left side panel:
3. View the List of Clients and Matters
Here you will find a list of all Clients/Matters with Trust Accounts:
4. Click on the Client and Matter
Click on the Client and Matter. You will find a chart displaying current due invoices, trust balance, and buttons to both take/deposit funds:
5. Click the Record Payment Button
Click the Record Payment button to pay an invoice out of the Client's trust account. You can also use the checkboxes to select multiple invoices that you’d like to include in the payment:
6. Select the Details and Record Payment
In the Record Payment window, select the amount to be paid, the date of the payment, and fill out the memo. The user will not see this memo. Press Record Payment.
Once the invoice is paid, the Trust Balance will be updated to reflect the changes in the account. Important: The 'Pay from Trust' feature in LeanLaw only records the transaction and creates the necessary journal entries. You must manually transfer the actual funds between your trust account and operating account in QuickBooks. This separation ensures compliance and security, as LeanLaw does not have direct access to your bank accounts.
Method 2: Trust Payment from Managed Invoices
After paying off the invoice, send an invoice to the client to update them on the status of their account.
1. Click the Billing Tab
In LeanLaw, click on the Billing tab:
2. Navigate to the Managed Invoices tab
Inside the Billing page, navigate to the Trust Account on the left side panel:
3. Locate the Invoice
Once you locate the invoice, select the ellipses (...) and select Pay from Trust.
4. Update the Trust Payment information
Verify that everything is correct and hit Pay from Trust.
5. Verify Paid Status
You can verify that the payment from trust attached to the invoice by changing the filters to reflect an "All" or "Paid" state. The Trust balance will update to show the remaining balance of any remain. Otherwise, it will reflect as $0.00. Important: The 'Pay from Trust' feature in LeanLaw does not automate fund transfers. These need to be performed manually between your trust and operating accounts. This ensures compliance with financial regulations and safeguards account security.
If you made a partial payment from trust, the Balance will reflect the remaining balance due and the date will remain under Due.
Best Practices for Trust Fund Management
To ensure smooth operations when using trust funds in LeanLaw:
Regularly review user permissions to ensure they align with your team's operational needs.
Always complete the external bank transfer promptly after recording a 'Pay from Trust' transaction in LeanLaw.
Verify trust balances before attempting to make payments to avoid errors.