Transfer funds from one Trust Account to another in the same matter

Learn how to transfer funds between trust accounts within the same matter using Smokeball. This process involves performing the actual transaction with your bank and manually recording the transaction records in Smokeball (in both the old and new trust accounts).

Step 1: Add the New Trust Account in Smokeball Settings

In order to transfer funds between trust accounts in Smokeball, ensure that the new trust account has been added. Learn how to add another trust account.

Step 2: Transfer funds via your bank

Before recording the transfer in Smokeball, you must first complete the transfer through your bank:

1. Log in to your banking platform.
2. Initiate a transfer from the trust account holding the funds to the destination trust account.
3. Make sure to record the details of the transfer, such as the date, amount, and reason.
   • Ensure that you adhere to any trust accounting regulations when transferring funds between accounts.

Step 3: Record the Outgoing Transaction in the Source Trust Account

1. Open the matter in the Smokeball Web App.
2. Select the Transactions tab.
3. Select the trust account where the funds are being transferred from.
   
4. Click Trust Payment.
   
5. Enter the Amount of the transaction.
6. For the Reason, note that this is a transfer to another trust account for the same matter (e.g., "Transfer to [Trust Account Name]").
7. Input the Date of the actual bank transfer.
8. Click Process to record the withdrawal.

Step 4: Record the Incoming Funds in the Destination Trust Account

1. Staying within the same matter, go to the Transactions tab.
2. Select the destination trust account (where the funds are going to).
   
3. Click Deposit Funds.
   
4. Enter the Amount of the transfer, which should match the amount in the Destination Trust Bank Statement.
5. In the Reason field, indicate this is part of the transfer from the source trust account (e.g., "Transfer from [Trust Account Name]").
6. Input the Date of the actual bank transfer, ensuring it matches the date on the trust bank statement.
7. Click Process to finalise the deposit.

Step 5: Verify the Transfer

Once both the withdrawal and deposit are recorded, verify the transfer by:

• Reviewing the Transaction History for both trust accounts in the Accounts tab.
• Ensuring that the total balance of both accounts reflects their bank statements. (The old trust account should have $0 balance)

If any discrepancies occur, double-check the transaction details to ensure amounts and dates are consistent.

Step 6: (Optional, NSW & Vic only) Reconfigure the Statutory Deposit Matter

After verifying trust balances are correct, reconfigure the Statutory Deposit matter to the new trust account.

1. Navigate to the Settings icon in the Smokeball Web App, then select Firm Settings.
   
2. Select Accounts from the left menu.
3. Click on the old trust account.
4. Remove the Statutory Deposit matter. Note you can only remove the Statutory Deposit matter if it has a non-zero balance.
   
5. Select Save.
6. Click on the new trust account.
7. Input the Statutory deposit matter.
8. Select Save.

Step 7: Generate and Save Reports (Optional)

• Navigate to the Accounts section from the left menu, then select the End of Month tab to download the auditing reports for the matter (if not already saved to your computer).
  
• You can also email the trust statements for each matter by navigating to the Reports section, then selecting Trust Statements.
  • Select All matters in the ‘Show transactions for’ filter.
  • Select the Email Report button.
    

Step 8: Close the old trust account

You will need to perform an end of month reconciliation of the old trust account before closing it.

1. Reconcile the old trust account and download the End of Month Report for it.
2. Navigate to Firm Settings, then Accounts from the left panel.
3. Select the old trust account.
4. Select Close Account.

Important Notes

• Transferring funds requires client approval. You may transact matter funds as you receive approval.
• For bulk bank transfers of the entire trust balance, transactions must still be recorded by matter balance in Smokeball. The trial balance report may assist with this.
• Always follow trust accounting guidelines when handling trust account transfers to maintain compliance.
• Double-check all amounts, dates, and reasons before processing transactions to avoid errors in the ledger.
• Ensure that bank transfers are completed before recording them in Smokeball to avoid mismatches in accounting.

Frequently Asked Questions

What if I record the wrong amount?

If an incorrect amount is entered, you need to reverse the transaction record and re-input. It’s important to note the reason for the correction in the relevant field.

Can I transfer the entire trust balance in a bulk bank transaction?

Yes, you can. However, you still need to record individual transactions (the whole matter trust balance) in each matter as per steps 3 and 4 above. The trial balance report (as at the day of the bulk transfer) may assist you.

Do I have to do it all on the same day?

No, it is not necessary to do all the transfers on the same day. You can perform bank transfers, and record them in Smokeball, as you get approval from your clients.

By following this process, you can accurately transfer and record funds between trust accounts in Smokeball. Always ensure that bank transfers are completed before recording transactions, and keep detailed notes for compliance and auditing purposes.