IOLTA interest payment and receipt into trust account
What is the best approach to record IOLTA interst receipt and payment into Trust account every month?
The interest received into Trust account should be deposited under liability account but when the interest amount is paid form trust account, will it be recorded under that liability account and net off?
When interest is deposited into the trust account, create a deposit and assign the liability account to it. That will increase your bank account and the liability account. When payment is issued for the interest earned, you can use either the Check or Expense function. Either way works. Assign the same liability account to the Check or Expense as you used on the deposit. That will reduce your bank account and liability account. Hope that helps.
When interest is deposited into the trust account, create a deposit and assign the liability account to it. That will increase your bank account and the liability account. When payment is issued for the interest earned, you can use either the Check or Expense function. Either way works. Assign the same liability account to the Check or Expense as you used on the deposit. That will reduce your bank account and liability account. Hope that helps.
IOLTA interest payment and receipt into trust account
Hi, Rainflurry.
I appreciate you for always sharing your knowledge about QuickBooks. This will definitely help other users as well in the future. Please keep on posting here in the Community.
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.
