Attorney questions

Posted by Allan Martin on September 3, 2006, 8:04 pm

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>>>

>>>>I have an acquaintance who is an attorney and he wishes to use QBs Pro

>>>>to keep track of his books. How does a judgement for a client get

>>>>recorded so he can track payments? He goes to court, gets a judgement,

>>>>collects the money, deposits it in an escrow account and he wants to be

>>>>able to be sure they pay on time and do not get behind in their

>>>>payments.

>>>

>>> The only way I can think of is to create an automatic entry for an

>>> invoice each time a payment is due.

>> Credit "Judgment Receivable - Client Name" and

>>> debit "Accounts Receivable." This way, you can see an A/R Summary

>>> Report which will age the unpaid A/R.

>>>

>>> When payment is received, Receive Payments and apply to A/R - not the

>>> judgment. This is a bit awkward. I hope someone has a better solution.

>> I agree, your solution would not be my first choice nor my last. I do

>> give you credit for qualifying your response.

> what would be your first choice?

First I would use the help feature in QB and look up "Trust Account".
Second I would set up a separate dummy company file to track client escrow
receipts and payments. I would not muck up my own records with the
transitions of my clients. I would also possibly make use of memorized
checks and set them up as recurring as needed.

I would certainly not go crazy setting up Judgement Receivables etc. An
attorney can hold escrow amounts for a multitude of clients during the year.
Keep it simple.

Posted by Golden California Girls on September 4, 2006, 2:40 am

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Allan Martin wrote:

>>>>> I have an acquaintance who is an attorney and he wishes to use QBs Pro

>>>>> to keep track of his books. How does a judgement for a client get

>>>>> recorded so he can track payments? He goes to court, gets a judgement,

>>>>> collects the money, deposits it in an escrow account and he wants to be

>>>>> able to be sure they pay on time and do not get behind in their

>>>>> payments.

>>>> The only way I can think of is to create an automatic entry for an

>>>> invoice each time a payment is due.

>>>

>>> Credit "Judgment Receivable - Client Name" and

>>>> debit "Accounts Receivable." This way, you can see an A/R Summary

>>>> Report which will age the unpaid A/R.

>>>>

>>>> When payment is received, Receive Payments and apply to A/R - not the

>>>> judgment. This is a bit awkward. I hope someone has a better solution.

>>> I agree, your solution would not be my first choice nor my last. I do

>>> give you credit for qualifying your response.

>> what would be your first choice?

> First I would use the help feature in QB and look up "Trust Account".

> Second I would set up a separate dummy company file to track client escrow

> receipts and payments.

Allan, would that be one dummy company per escrow account? IIRC, in California,
each client's funds (retainer's, judgment collections, etc.) are supposed to be
held in a separate interest bearing trust bank account, FDIC insurance I think
may be the reason for an account for each client. Interest is required to be
sent to the Bar.

>I would not muck up my own records with the

> transitions of my clients. I would also possibly make use of memorized

> checks and set them up as recurring as needed.

> I would certainly not go crazy setting up Judgement Receivables etc. An

> attorney can hold escrow amounts for a multitude of clients during the year.

> Keep it simple.

Posted by Gil Faver on September 4, 2006, 10:18 am

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> Allan Martin wrote:

>>>>>> I have an acquaintance who is an attorney and he wishes to use QBs

>>>>>> Pro to keep track of his books. How does a judgement for a client get

>>>>>> recorded so he can track payments? He goes to court, gets a

>>>>>> judgement, collects the money, deposits it in an escrow account and

>>>>>> he wants to be able to be sure they pay on time and do not get behind

>>>>>> in their payments.

>>>>> The only way I can think of is to create an automatic entry for an

>>>>> invoice each time a payment is due.

>>>>

>>>> Credit "Judgment Receivable - Client Name" and

>>>>> debit "Accounts Receivable." This way, you can see an A/R Summary

>>>>> Report which will age the unpaid A/R.

>>>>>

>>>>> When payment is received, Receive Payments and apply to A/R - not the

>>>>> judgment. This is a bit awkward. I hope someone has a better

>>>>> solution.

>>>> I agree, your solution would not be my first choice nor my last. I do

>>>> give you credit for qualifying your response.

>>>

>>> what would be your first choice?

>> First I would use the help feature in QB and look up "Trust Account".

>> Second I would set up a separate dummy company file to track client

>> escrow receipts and payments.

> Allan, would that be one dummy company per escrow account? IIRC, in

> California, each client's funds (retainer's, judgment collections, etc.)

> are supposed to be held in a separate interest bearing trust bank account,

> FDIC insurance I think may be the reason for an account for each client.

> Interest is required to be sent to the Bar.

That is not a requirement. The requirement is that IF you collect interest,
the interest must be paid to the client or to the State Bar. But, you can
put it in a non interest bearing account. You don't need a separate account
per client, but you DO need to keep track of it all by client.

Posted by Allan Martin on September 4, 2006, 11:12 am

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> Allan Martin wrote:

>>>>>> I have an acquaintance who is an attorney and he wishes to use QBs

>>>>>> Pro to keep track of his books. How does a judgement for a client get

>>>>>> recorded so he can track payments? He goes to court, gets a

>>>>>> judgement, collects the money, deposits it in an escrow account and

>>>>>> he wants to be able to be sure they pay on time and do not get behind

>>>>>> in their payments.

>>>>> The only way I can think of is to create an automatic entry for an

>>>>> invoice each time a payment is due.

>>>>

>>>> Credit "Judgment Receivable - Client Name" and

>>>>> debit "Accounts Receivable." This way, you can see an A/R Summary

>>>>> Report which will age the unpaid A/R.

>>>>>

>>>>> When payment is received, Receive Payments and apply to A/R - not the

>>>>> judgment. This is a bit awkward. I hope someone has a better

>>>>> solution.

>>>> I agree, your solution would not be my first choice nor my last. I do

>>>> give you credit for qualifying your response.

>>>

>>> what would be your first choice?

>> First I would use the help feature in QB and look up "Trust Account".

>> Second I would set up a separate dummy company file to track client

>> escrow receipts and payments.

> Allan, would that be one dummy company per escrow account?

In many cases only a single actual trust checking account is set up. This
single trust checking account can be used for multiple escrow accounts. All
that is required is that a separate accounting be maintained for each escrow
account, which QB can handle.

Except in instances where there are a vast number of escrow transactions a
single dummy company will usually suffice.

IIRC, in California,

> each client's funds (retainer's, judgment collections, etc.) are supposed

> to be held in a separate interest bearing trust bank account, FDIC

> insurance I think may be the reason for an account for each client.

> Interest is required to be sent to the Bar.

>>I would not muck up my own records with the transitions of my clients. I

>>would also possibly make use of memorized checks and set them up as

>>recurring as needed.

>> I would certainly not go crazy setting up Judgement Receivables etc. An

>> attorney can hold escrow amounts for a multitude of clients during the

>> year. Keep it simple.

>>>

Posted by HeyBub on September 3, 2006, 6:50 pm

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Ace wrote:

> I have an acquaintance who is an attorney and he wishes to use QBs

> Pro to keep track of his books. How does a judgement for a client get

> recorded so he can track payments? He goes to court, gets a

> judgement, collects the money, deposits it in an escrow account and

> he wants to be able to be sure they pay on time and do not get behind

> in their payments.

He allows judgements to be paid out over time?

Weird.

Law offices have so many unique and specific requirements that a system
designed exactly for that profession would be much better.

For example, QB cannot keep track of statute of limitation filings or
conflict of interest problems. More lawyers are sued over these two failings
than all other possibilities combined. A comprehensive law office system
will keep track of these problems - in addition to your original request.