Over the years we have shared numerous blogs about choosing the right Trust Accounting software. We cover the ‘must-haves’ to assist you in choosing the right software package, from tenant portals to document management and built-in inspection apps. Using the correct Trust Accounting software matters more than you might think.

Yet, alas we still receive accounts in Xero, Quickbooks and MYOB.

Note to self – the rules don’t permit these general accounting systems for Trust Accounting use.

This also includes Excel! Yes, alas we are not kidding.

To repeat…

  • Xero? Not allowed.
  • QuickBooks? Not allowed.
  • MYOB? Not allowed.
  • Excel? Not allowed.

The big 4 above are a big no. It’s not just our knickers that will get in a knot when presented with accounts in these programs – the fines can be horrendous too.

I use Xero. Where do I go from here?

So you use one of the aforementioned general accounting programs for your Trust Accounting.

Where do you go from here?

It is always best to use industry-specific software to meet legislation guidelines.

As we all know, legislation differs from one State and Territory to the next.

However, there are some key things to ensure when choosing your Trust Accounting software.

Any Trust Accounting software package you choose must have these capabilities: (which is why Xero, MYOB, Excel and QuickBooks don’t make the cut):

  1. Specific audit trail – every transaction needs its own audit number.
  2. You can’t delete, void or edit transactions. You must reverse them.
  3. Must have individual ledgers per property, owner, vendor, tenant & purchaser.
  4. Must have specific EOM reports you can print and sign.
  5. Must show which periods you’ve closed.

If you are unsure, reach out to the relevant industry body in your State or Territory.

We have highlighted some previous articles we have written all about choosing the right Trust Accounting software package – it makes for great reading and fewer fines!

Jane Morgan is the Director of End of Month Angels, a consultancy firm specialising in Trust Accounting. Jane knows the legislative requirements of running a successful Real Estate office through her 27 years’ industry experience. Don’t trust just anyone with your trust accounting. Book an appointment with an End of Month Angel today.

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