Note: QuickBooks Online does not automatically move funds between your bank accounts. Once you've completed the steps below, don't forget to electronically transfer the funds, or deposit the check QBO has created.
You've collected all of the time entries and expenses for this month's billing cycle, and you're ready to bill the client via their trust account. Read on to learn how to pay an invoice in trust.
Before You Bill
Before you bill, you'll need to have already created a trust account, and deposited funds into it. For more information regarding these steps, please check out How to Set Up and Deposit Client Retainers.
Pay The Invoice In Trust
Once the invoice has been created and sent to QuickBooks, it is now payable via Trust in LeanLaw.
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 window inside of the Billing tab:
3. View the List of Clients and Matters
Here you will find a list of all Clients/Matters with Trust Accounts:
3. 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:
4. 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:
5. 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.
After Paying the Invoice
After paying off the invoice, you may wish to send an invoice to the client, to update them on the status of their account.
1. Open QuickBooks Online
To send the invoice to the Client, open QuickBooks Online.
2. Click Chart of Accounts
Go to Settings, the click the Chart of Accounts
3. Find the Client/Matter
Scroll down the list until you find your Client/Matter.
4. Click the Triangle Drop-Down Beside View Register
Click on the triangle drop-down next to the View Register button:
5. Select Run Report
Select Run Report:
6. View the Report
Once you click Run Report, you will see the Account QuickReport:
7. Add and Update Information
Add your logo and update any relevant information:
8. Export as PDF
Click on the PDF symbol in the right-hand corner to export the Report as a PDF:
The Message displayed on invoice is automatically generated in LeanLaw, and displays information concerning the client's trust balance.
"Quick question on payments from trust and how they are recorded. I see there is a "Record Payment" button in LeanLaw, but also "Receive Payment" in QuickBooks. Do I record payments in both programs?"
If you are paying an invoice from retainer funds then you would use the "pay from trust" option. That's all you need to do. It will pay off the invoice and record the transfer out of the trust account into the operating account. It will also appropriately lower the client's trust liability account. All that will be left to do is to actually move the funds from one account to the other at the bank.