Trust Accounting

Overview 

A Trust accounting system performs accounting for your customers assets, liabilities, revenue, and expenses rather than your own. These are assets and liabilities that are held and managed by your organization as a Trustee. These assets and liabilities are not the property of your organization and should remain separate from your own financials. The following list contains common use cases for Trust Accounting: 

• Managing Investments
• Carriers in the Insurance industry
• Managing Accounts in the Legal industry
• Consignments  

GL Accounting Variables

The best way to handle Trust Accounting is to utilize the Accounting Seed GL Accounting Variable functionality. Using the GL Accounting Variable, each Trust should be set up as a value using one of the accounting variables.

One of the benefits to using a GL Accounting Variable to track Trusts is that you can run reports on the Trusts using the Accounting Seed Financial Reporter.

When setting up the criteria to run the report you have the option to filter the report to only show information regarding that GL Accounting Variable (Trust).

Multiple Ledgers

If you are maintaining a trust accounting system using Accounting Seed (accounting for your clients) as well as your own accounting (accounting for your organization) we recommend that you use two (2) separate ledgers in Accounting Seed:

• One ledger should contain all the accounting for your trusts.
• A separate ledger should contain the accounting for your own organization.