W
Wolfman1952
I receive payments from clients that (1) are security for future work to be
performed and (2) must be deposited in a client trust account.
It is unclear whether Small Business Accounting permits me to record the
transactions I must.
1. I receive the payment and deposit it into the client trust account. I
have not "earned" the payment; it still "belongs" to the client. My balance
sheet should show a positive balance in the trust account with a
corresponding liability in a trust payable account (in short, the client
funds are not my assets).
2. If I use funds from the client trust account to pay a client invoice, I
must write a check against the client trust account. SBA does not appear to
allow me to write such a check and apply it against a client invoice.
Any feedback (including a workaround) would be appreciated.
Thanks.
performed and (2) must be deposited in a client trust account.
It is unclear whether Small Business Accounting permits me to record the
transactions I must.
1. I receive the payment and deposit it into the client trust account. I
have not "earned" the payment; it still "belongs" to the client. My balance
sheet should show a positive balance in the trust account with a
corresponding liability in a trust payable account (in short, the client
funds are not my assets).
2. If I use funds from the client trust account to pay a client invoice, I
must write a check against the client trust account. SBA does not appear to
allow me to write such a check and apply it against a client invoice.
Any feedback (including a workaround) would be appreciated.
Thanks.