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Best Trust Accounting software

Finding the best Trust Accounting Software for your business is now faster and easier! Compare prices, reviews, features, and get free consultation to find the perfect software.

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Trust account is the term given to the process of bookkeeping trust accounts according to the state requirements. Each state has its list of rules that the trust account should adhere to, and the trust accounting process would help the clients or law firms to maintain the accurate record and manage the accounts.

In today’s world, trust accounting is highly reliable on definite bookkeeping rules. It is why most law firms and lawyers choose the trust accounting software instead of the manual process. Such software will help with

  • Deposit tracking and disbursement tracking that happens through the trust account

  • Maintaining a ledger with details about every single monetary transaction done with different clients

  • Maintaining an accounting journal

  • Monthly reconciliation

Keeping track is not as easy as said on paper. Every single transaction should be tracked and managed. Every transaction should have proper paper trails to back up. Why not use general accounting software instead of trust accounting software?

The risks of improper management are higher with trust funds. Many lawyers have lost their legal licenses due to discrepancies in the record. Thus, tracking transactions across multiple accounts, investment management portfolio, estate, and others are much more manageable with trust accounting software.

Are you upgrading your management process? Or, are you choosing a trust accounting software for the first time? Well, it is not a single-step process. If you are planning to buy a trust accounting software, here is everything you need to know.

Find your needs

The legal trust accounting software should solve the trust accounting problems you have in hand. Remember that just because a legal trust accounting software is expensive, it does not mean that it is the right fit for your firm. Consider your requirements in terms of

  • Accounting and reporting

  • Cost recording

  • Debtor control

  • Compatibility with the firm’s current IT architecture

  • Style of licensing

  • Database access and research tool

  • Archiving – cloud storage, electronic records, and others

Cost of the software

Yes, just because a legal trust accounting software is cheap, it does not mean it is not adequate. It depends on the type of licensing that you want. However, the initial cost of the trust accounting software for lawyers is not the only cost you would incur. In general, apart from the license cost, you will embrace the cost of maintaining the software, the cost of changing the architecture, cost of upgrading the capacity, cost of security or backup system, and cost of support.

Implementation ease

The best trust accounting software should be easy to implement. Can the new software migrate data from your old system? Can you still use the old system as a backup? Does your staff need specific training to use the best trust accounting software? What are the procedures for documenting, reporting, and managing? Migrating to a new trust accounting software for lawyers is not easy. However, if you choose the one with easy implementation and interface, the transition would be smoother.

Features

The best trust accounting software is not the one with all the features known to the industry. It is all about what you need for your firm right now. You need not spend a considerable amount of capital on the top trust accounting software for lawyers if you do not want half of the offered features for your daily use. Remember to check for the type of outputs, transaction documents or reports analysis, backup, and recovery features.

Scalability

You cannot keep on changing the trust accounting systems now and then. Thus, you need the right software that can scale along with your company. This scalability is an essential element to keep in mind while choosing trust accounting software for banks.

The types of trust accounting systems that you find in the market depend on the target audience.

For attorneys

The trust accounting systems for attorneys will help the lawyer to manage, reconcile, and track the trust accounts.

For trustees

If you are one of the trustees, you ought to choose the trust accounting software for trustees. The best trust accounting software for trustees would help with an investment portfolio, guardianship, and others. It is best for trust companies, family offices, charities, and others.

For law firms

The legal trust accounting software for law firms and solo attorneys differ in its capability and the type of features that add value to the software. If you are choosing a legal trust accounting software for your law firm, the package focuses on accounting, practice management, billing, and others.

Some companies choose specialized legal trust accounting software with features like contact management, matter management, rules-based calendaring, tracking time, form automation, and others. Such high-end trust accounting systems come with private cloud features and backup with disaster-proof.

For real estate

If you are choosing trust accounting software for real estate, you can find features like activity tracking, compliance management, receipt management, customer statement, tax management, fee calculation, cross ledger posting, and others.

For insurance personnel

This style of trust accounting system helps insurance agencies with commission tracking, percentage commission, compliance management, and others.

For banking

If you are choosing the trust accounting software for banks, you will receive features for banking integration, accounting, barcode integration, and others.

It is not that you should not choose a general trust accounting software if you are in real estate. However, the trust accounting software for real estate will provide better features for real estate agents rather than trust accounting software for trustees.

May it be the trust accounting software for real estate or trustees, most of the benefits of a trust accounting software are the same.

  • Improves overall efficiency by reducing the time taken for managing the trust accounts.

  • The best trust accounting system will provide sufficient internal controls.

  • If you are choosing the real estate trust accounting softwareyou could generate customized reports to meet the needs of your firm and your client. In the case of banking trust accounting software, the reporting features would be different.

  • Easy, faster, and fully-functional reconciliation process. Some software helps to create three-way reconciliation.

  • Audit trails become easier, thereby increasing the transparency of your practice. This transparency helps to maintain morale and also increase your brand value.

  • Each state has its regulations for managing and handling trust accounts. The software helps in compliance with regulations of the state. It helps to reduce the risk inherent in this genre of accounting.

Streamlining

The software you choose for trust accounting, regardless of the type, should have the ability to streamline the process and improve efficiency. This primary feature should be in all trust accounting systems like real estate trust accounting softwarebanking trust accounting software, and others. 

Reporting

Every client would need specific reports. Individual firms need daily reports for analysis and filing. The trust accounting software comes with a customizable report generation feature. These reports are also adaptable and comprehensive.

Auditing Management

The software can track receipts and transactions and store them for audit. The auditing process also gets managed by the software. It adds internal control and sufficient accounting safeguard to your practices.

User interface

If you are choosing a real estate trust accounting software, the software comes with a user interface or portals for the landlord, tenant, build-in inspection app, and others.

Disaster management

All the trust accounting systems come with backup in an electronic database and cloud. This backup helps in retrieving data effectively during a disaster or cyberattack.

Basic journal function

The software also comes with basic journal functions that allow movement of funds between the accounts, if needed. These are just the basic features. You can find other customized features based on the type of accounting system you choose, like real estate (real estate software) trust accounting software.

Trust accounting systems suffer from a niche problem. There is a very small group of people who would require trust accounting software for banks or real estate. With the increase in trust advisory firms, in 2017, the trust accounting systems went mainstream, with numerous players. The industry also saw growth from a singular platform for trust accounting to a holistic base for wealth management with trust accounting software.

In 2019, the trust accounting systems joined hands with the IT intelligence sector, bringing forward a grand growth for the industry. According to experts, the industry has the potential to grow steadily between 2020 and 2027.

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Frequently Asked Questions (FAQs)

  • It involves disbursement and fund deposit tracking, monthly reconciliation, journal account, ledger maintenance, and others for trust accounts.
  • Trust accounts can be anything starting from real estate investment, stocks, cash, property, and others. An individual opens it, and a trustee manages it.
  • This is the process in which the trust transactions get verified. Usually, this audit process takes place once a month.
  • This is the process of comparing reports of book balance, client ledger balance, and bank statements. It helps to identify discrepancies.

Trust Accounting software in following industries

Rinkesh AnandaniBy Rinkesh Anandani | Last Updated: October 28, 2020

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