Attorney questions

[Ace]

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.

 

[Joanne]

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.

--
Sincerely,
Joanne

If it's right for you, then it's right, . . . . . for you!!!

http://www.jobird.com

 

[Ace]

Thank you, Joanne. Would this be a "pass-thru" type of account?

 

[HeyBub]

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.

 

[Allan Martin]

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.

 

[Gil Faver]

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.

Billing systems are typically different from calendaring systems and
different from conflict of interest systems. Law firms need them all.

 

[Gil Faver]

Credit "Judgment Receivable - Client Name" and

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?

 

[Allan Martin]

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.

 

[Gil Faver]

Billing systems are typically different from calendaring systems and
different from conflict of interest systems. Law firms need them all.

And now Allan reminds me that trust accounting is different than all of the
above, and law firms need them all.

 

[TKnTexas]

And, as an unemployed accountant I am finding a number of law firms use
QuickBooks. I just saw an ad for accountant for a law firm with 200
lawyers and they need an accountant who is a QuickBook expert. I see
at least one ad a week for a law firm needing a QuickBook accountant.
Apparently they have found the way to set up QuickBooks for use.
TK

 

[Gil Faver]

sure, but not for conflicts, calendaring, etc.

And, as an unemployed accountant I am finding a number of law firms use
QuickBooks. I just saw an ad for accountant for a law firm with 200
lawyers and they need an accountant who is a QuickBook expert. I see
at least one ad a week for a law firm needing a QuickBook accountant.
Apparently they have found the way to set up QuickBooks for use.
TK

 

[Ace]

Thank you for all of your responses. I'm still trying to digest all of this
discussion. Hopefully, with your help, I will be able to help my friend.

 

[Golden California Girls]

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.

 

[Gil Faver]

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.

 

[HeyBub]

And now Allan reminds me that trust accounting is different than all
of the above, and law firms need them all.

Of course. The problem is getting these disparate systems to work together.
This inherent incompatability is the reason I suggested a comprehensive
package that accomodates all the needs of a specific industry, be it law
firms, brothels, crack distribution, auto "chop-shops," or the terrorist
lifestyle.

 

[Allan Martin]

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,

 

[Allan Martin]

And, as an unemployed accountant I am finding a number of law firms use
QuickBooks. I just saw an ad for accountant for a law firm with 200
lawyers and they need an accountant who is a QuickBook expert. I see
at least one ad a week for a law firm needing a QuickBook accountant.
Apparently they have found the way to set up QuickBooks for use.

One can only assume that they use QB for limited functions for their
clients. Hard to belive that a firm that size would acutally keep their own
internal records on QB.