A Trust accounting system performs accounting for your customers assets, liabilities, revenue and expense rather than your own. These are assets and Liabilities that are held & managed by your organization as a Trustee. These assets and liabilities are not property of your organization and should remain separate from your own financials. The following list contains common uses cases for Trust Accounting:
- Managing Investments
- Carriers in the Insurance industry
- Managing Accounts in the Legal industry
The best way to handle Trust Accounting is to utilize our Accounting Variable functionality. Using an Accounting Variable. Each Trust should be set up as a value using one of the accounting variables.
One of the benefits to using an Accounting Variable to track Trusts is that you can run reports on the Trusts right out of our Financial Reporter.
When setting up the criteria to run the report you have the option to filter the report to only show information around that Variable (Trust)
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 2 separate ledgers in Accounting Seed to do this. One ledger would contain all the accounting for your trusts and a separate ledger would contain the accounting for your own organization.