The first step in setting up your trust account is to select your main Operating bank account. This is needed so that transactions that affect both accounts (such as invoice payments from the trust account) will be properly recorded in QuickBooks Online.
You will also have the opportunity to decide if you want to use the Undeposited Funds account in QuickBooks Online to “hold” your trust deposits until your actual bank deposit is made. You will want to make sure that your Operating account in QuickBooks Online is properly set up as a “bank” account and you will probably use “checking account” for the detail.
There will be a dropdown menu where you should be able to find the proper bank account from your QuickBooks Online chart of accounts.
Creating the IOLTA Trust Account:
The next step is to connect your trust account that you have set up in QuickBooks Online. It is important to make sure that you have the account set up with proper details. The “detail” for your trust account should be “trust account”, not checking (even if it is a checking account). This is necessary for the mapping from LeanLaw to QuickBooks Online.
Setting the IOLTA Account in LeanLaw
You can see that because the account called “IOLTA checking” was properly set up in QuickBooks Online, it was able to be identified during the trust set up in LeanLaw.
You now need to connect your trust liability account. If you do not have one, LeanLaw will automatically set it up properly in QuickBooks Online for you and then connect to it. If you do have a main liability account already established, you should be able to identify it during setup.
As you can see in the QuickBooks Online account above, the account and detail types should be set specifically to “Other Current Liabilities” and “Trust Accounts Liabilities” respectively.
Invoice Trust Notice:
You will also see the default message that will appear on invoice memos related to a client’s trust account. It will recap the trust balance, payment made on the invoice and then remaining balances. This message can be customized as needed.
If you'd prefer a video walkthrough, this video explains how:
Once you are set up, check out how to make deposits and payments in this article: