Controlled Money Accounts

In Australia, clients have the ability to open a new bank account with an approved bank and make their law firm the manager of the account. So the funds always belong to the Client but the account is managed by the Law Firm.

First, you need to set up the right number of bank accounts (as you would for a regular trust current or investment) except in the Trust Admin you select the bank account type as "Controlled Money".

If you have a matter which has 4 controlled money accounts then you will need 4 GL accounts. This then means ANY matter can then have up to 4 accounts. If you only add 1 GL account then your matters are limited to 1 controlled money account.

From there it works like any other trust current/investment except when you open a new matter account you must specify additional data like the bank name + account number.

The following instructions apply to Practice Pro + Accounting Systems.

Adding a controlled monies account to Actionstep

• Go to Accounting > Accounts > Accounts List
• Change Display to Master Accounts

Adding a new trust GL account

1. Click the green plus button
   • Account number: GL account number (not bank account number).
   • Account name: GL account name
   • Account type: Bank
2. Save. Do not link the bank account at this stage.

Linking the GL account to the Controlled Money bank account

1. Admin > Trust Accounting > Bank Accounts
2. Click the plus button to add a new account
3. Link to the newly created GL account you created above
4. Set the Account Type as Controlled Money
5. The next fields should be left generic as you will set the clients CMA account details in the matter itself:
   • Account number: Not Applicable
   • Account Name: Controlled Money Account (or similar)
6. Save

If you have a matter which has 4 controlled money accounts, then you will need 4 GL accounts. This then means ANY matter can then have up-to 4 accounts. If you only add 1 GL account, then your matters are limited to 1 controlled money account.

Opening a controlled money account on a matter

• Navigate to a matter
• Go to the Trust tab
• Add account
• Set opening date
• Add individual account information for the specific clients controlled money account

The account is now open and you can receive funds as you would any other trust account. 

Transactions

All transactions for a controlled money account must be entered via a receipt or payment. Unless specified when adding the bank account, the first receipt will commence from 1. 

You can enter transactions from/to the Controlled Money account without the need of processing through your Current Trust account. 

The matter trust balance on the Billing > Overview screen will reflect the total trust monies held on the matter including the Current Trust Account and the Controlled Money Account.   The Trust > Overview screen - will show the breakdown between any trust accounts on the matter.

Reporting

 A controlled money account is not available for reconciling. The following reports are available to assist with your reconciliations for your controlled money accounts from Reports > Trust Reports > Trust Accounting Reports: