Bookmarked! This has been immensely useful information! Here are some timestamps that I found to be useful: 3:30 Invoice retainer 4:52 Retainer paid 8:40 Reports to verify retainer 9:46 Apply retainer to customer invoice for work completed 11:22 Reports to verify 11:38 Need to transfer funds from trust account to operating account 14:15 Warning for retainers not paid yet
Hi Hector thank you so much for all information. Can you please give me the advice how to enter the settlement payment, which is some money go to the Law Office and some money goes to the client? Thanks
Hector, you should know that different states use the terminology differently. In Florida, a retainer is money paid as an advance fee but also to ensure the attorney's availability to you. Therefore, it is earned upon receipt and should not go into the trust account. An advanced fee on the other hand is not earned until the work is completed, and MUST be placed into a client's trust account.
Interesting, great point!. I don’t know all the state’s terminology .. either way; I am teaching the accounting concept only, not the legal determination of the payment.
Working with a consultant that sends a lawyer an invoice for retainer. But 2 Intuit agents recommended that we use Estimate to request the retainer instead of an invoice and then later in the process convert it to an invoice. Any idea why they would recommend taking that approach? Thanks.
Thank you for sharing this video. I learned a lot from it. In this video, you transfer the money from the trust account to the company operating account. But what If the attorney's income (attorney's funds) was sitting in the Trust account for more than 1 year due to a calculation error by a staff. Should I create "funds held by others" on the attorney's balance sheet? or do nothing which would make a difference between the trust account and the client's funds in liability on the balance sheet for the entire year.
I started QB with our small firm in 2019. Starting with 2021, should I redo all our retainers this way? I have been setting up Retainers as regular invoices and applying discount values when applying a retainer amount and keeping track of all of the transactions on excel.
Hi Hector! I'm wondering if your method has remained the same or what your thoughts are creating sub-accounts for each customer under the parent trust liability account
Can you advise the way to set up QB for personal injury trust accounts, where payments are made from the operating account before settlement funds are received? Is that covered in your advanced series? Thank you!
Bookmarked! This has been immensely useful information!
Here are some timestamps that I found to be useful:
3:30 Invoice retainer
4:52 Retainer paid
8:40 Reports to verify retainer
9:46 Apply retainer to customer invoice for work completed
11:22 Reports to verify
11:38 Need to transfer funds from trust account to operating account
14:15 Warning for retainers not paid yet
Thanks i added it
Thank you for making this simple. I finally fixed an issue that has been bothering me for the past three months..
Great!
What is the income account for the hours that you work that you spoke of in this video ?
Hi Hector thank you so much for all information. Can you please give me the advice how to enter the settlement payment, which is some money go to the Law Office and some money goes to the client? Thanks
Its hard to tell without looking at all the transactions
An excellent presentation. Can you please advise how to prevent invoicing more than the retainer in QBO.
Cant
Can this be used for Accounting firms which charge retainer invoices?
Hector, you should know that different states use the terminology differently.
In Florida, a retainer is money paid as an advance fee but also to ensure the attorney's availability to you. Therefore, it is earned upon receipt and should not go into the trust account.
An advanced fee on the other hand is not earned until the work is completed, and MUST be placed into a client's trust account.
Interesting, great point!. I don’t know all the state’s terminology .. either way; I am teaching the accounting concept only, not the legal determination of the payment.
Working with a consultant that sends a lawyer an invoice for retainer. But 2 Intuit agents recommended that we use Estimate to request the retainer instead of an invoice and then later in the process convert it to an invoice. Any idea why they would recommend taking that approach? Thanks.
I dont know; they are not accountants
Thank you for sharing this video. I learned a lot from it.
In this video, you transfer the money from the trust account to the company operating account.
But what If the attorney's income (attorney's funds) was sitting in the Trust account for more than 1 year due to a calculation error by a staff.
Should I create "funds held by others" on the attorney's balance sheet? or do nothing which would make a difference between the trust account and the client's funds in liability on the balance sheet for the entire year.
I started QB with our small firm in 2019. Starting with 2021, should I redo all our retainers this way? I have been setting up Retainers as regular invoices and applying discount values when applying a retainer amount and keeping track of all of the transactions on excel.
How different would be the workflow on a cash basis law firm? Thank you
Hi Hector! I'm wondering if your method has remained the same or what your thoughts are creating sub-accounts for each customer under the parent trust liability account
Has not changed
Can you advise the way to set up QB for personal injury trust accounts, where payments are made from the operating account before settlement funds are received? Is that covered in your advanced series? Thank you!
I don’t remember if it has... but the principles are the same.
Actually. No... not the same. We do need another video for that
Very helpful video Hector, but How do you go about doing a partial refund for a client who paid his full retainer?
Just write then a check against the retainer liability account
@@HectorGarciaCPA I will try that. Thank you!
Thank you, Hector.
You welcome
Thanks a lot Hector Garcia, This is helpful. Francis
You welcome.
Go with PCLaw