Choose the right software for you and you won’t lose sleep. You will find it easy to comply with complicated trust account regulations. But, how to choose the right application and what parameters your application should follow.
Switch from Manual to Automated Record handling –
You should review the accounting procedure of your firm’s trust account and spot which procedures are handled manually. Manual bookkeeping is the reason for various problems. The manual processes are time-consuming. It becomes really difficult to detect the mistakes and reports are very time to consume and difficult to prepare.
An excellent trust accounting software can replace your manual accounting tasks without any problem and give you with total control of your trust accounting.
Following are the benefits of switching from the manual to software trust accounting –
- Simplified transaction entries,
- Trust check printing,
- Bank reconciliations and generating reports
- Quick error detecting
- Quickly maintain an audit trail for any changes made in your trust books
- It is easy to review trust data
- Quick corrections without shuffling through stacks of paper
It is prudent to choose software carefully–
- You should choose Fiduciary Trust Accounting Software carefully and must not select any software in hurry.
- There are many accounting software on the market that works very well for general operating accounts but it is not necessary that these applications promise to fulfill the trust accounting requirements.
For example, general accounting applications usually do not produce client ledgers easily. This makes it possible for trust accounting mistakes to occur easily. There is usually no audit trail log and one can even go back to reconciled months without much difficulty and can edit prior transactions. This is not what you want for trust accounting.
Following are the considerations during selection –
- Is the software designed to check common trust accounting errors? Can it prohibit the mistakes like duplicate check numbers, client ledger overdrafts etc.? The above problems must be stopped at the transaction entry itself.
- Does the software make deposits and disbursements in every client account very simple to enter, track and reconcile?
- Is the program able to make reports dexterously? The monthly reports like ledger card balances, transactions, reconciliation and three-way reconciliation, should be produced without any difficulty.
- It should be able to print trust checks and deposit slips.
Software can be replaced and your lost data is not easy to re-create. So for the trust accounts, it is prudent to maintain backup copies of data files and store them in a secure and separate place.
Managing trust accounts is easier. Use the Fiduciary Accounting Software designed to help you comply with state regulations. Go with above-explained properties and manage your trust account deftly.
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