In this article, we detail the basic lifecycle of a trust deposit, from entering your bank account to paying an invoice.
Tip: always refer to the bank statement of your trust account when working with trust transactions.
Step 1: Record a trust deposit transaction in Smokeball
When you receive confirmation of a deposit in your trust bank account, it is essential to record the transaction accurately in Smokeball. Smokeball provides a straightforward process for recording trust deposit transactions.
You can record the transaction using the Deposit Funds button in the Transactions tab of the matter. After recording the deposit, the trust receipt is generated for you.
Learn more about recording deposited funds in your client's trust account.
Why should you record the deposit?
Recording the trust deposit transaction in Smokeball ensures the information is accurately documented and easily accessible for future reference. The generated trust receipt provides a clear record of the transaction, serving as proof of the deposit made into the trust account.
Note: When you send a Credit Card Deposit Request to a client and they pay it, the trust deposit is automatically recorded in Smokeball.
Step 2: Review trust deposit transactions
In Smokeball, you have multiple ways to review trust deposit transactions, allowing you to easily track and monitor the funds entering your client's trust account. Below are some methods of reviewing trust deposits.
Reviewing trust deposits in transaction history
Access the Transactions tab in the matter or the Accounts tab in the Navigation Bar.
If there are multiple trust accounts, be sure to choose the correct one from the list.
Here, you can view a comprehensive list of all recorded trust deposit transactions across all matters. The transaction history provides essential details such as transaction and recorded date, description, Reference, associated contacts, and overall trust fund balance.
Reviewing trust deposits in a matter
Open the matter file and click the Transactions tab.
You can also export the client’s Trust statement with the Print button.
Generating trust reports
Smokeball offers filtered reporting options, allowing you to select specific date ranges, clients, or matters.
Reports can provide summaries, transaction listings, or even graphical representations of trust deposit activity. These features provide detailed information and allow you to track and monitor trust deposit activity effectively.
Useful reports for reviewing trust deposits include the Trust Receipts, Cash Book Receipts, and Account Statements reports.
To access reports, go to the Reports tab from the left panel.
Step 3: Reconcile the deposit
Once the trust deposit transaction has been recorded in Smokeball, it is important to reconcile the deposit to ensure accuracy and maintain trust account integrity.
Reconciliation involves comparing the recorded transaction in Smokeball with the trust bank statement to verify that they match. Learn more about reconciling your trust account in Smokeball.
Why should you reconcile your trust account?
Reconciliation helps ensure that the trust account's records accurately reflect the transactions and balances in the bank account. It provides a crucial check to identify any discrepancies or errors that may have occurred during the recording process.
Step 4: Pay an invoice using trust funds
Smokeball enables you to conveniently pay invoices using trust funds from your client's trust account, streamlining the payment process and ensuring compliance.
You can pay an invoice with trust funds (also known as a trust to office transfer), by selecting the Add Payment button in the Invoices tab.
Under the Type drop-down menu, select the trust account to deduct funds from.
Make sure to record the payment as displayed on the trust bank statement.
Learn more about paying an invoice using trust funds in Smokeball. You can also record bulk trust to office transfers. Trust fund deposits may also be used to pay external parties, including suppliers and client refunds.
Remember to regularly review trust deposit transactions (Step 2), reconcile them with bank statements (Step 3), and document payments made from trust funds (Step 4) to ensure accurate and transparent trust accounting practices in Smokeball.