Chartered Professional Accountant located in Oakville

TRUST ACCOUNTING

TRUST ACCOUNTING

A trust account refers to any type of financial account that is opened by an individual and managed by a designated trustee for the benefit of a third party in accordance with agreed-upon terms.

BOOKKEEPING

Trust accounting is more about bookkeeping than accounting. It is the management of assets, including the sale of any assets. Process payments or other distributions to the beneficiaries of the trust fund by an attorney. Proper knowledge of accounting, tax rules, and bookkeeping, can make the trust administration process easier and less overwhelming and can help trustees manage distributions to beneficiaries. Scott CPA, CMA provides over 35 years of business experience to the task for his clients in Oakville, Burlington, and surrounding areas.

RECORD KEEPING

It is vital to keep detailed records of receipts, and disbursement of trust money in a journal and posting these transactions to the ledger accounts of the clients or other persons to whom the money belongs. Good trust bookkeeping practices can be of great help when it comes time to filing tax returns for trusts.

TAX REGULATIONS

With the regulations and professional standards that an attorney must comply when holding those funds, proper bookkeeping can ensure the attorney does not inadvertently fail to comply with those regulations.

When the time comes to finalize the trust, following a terminating event, proper bookkeeping helps provide final statements to all beneficiaries reflecting that the trustee properly managed the funds that were in the trustee’s care throughout the life of the trust.

Many attorneys and individual trustees turn to Scott Gray, CPA, CMA, and his team, for help with their trust matters.