I set up my trust account and a sub account for each client. When I make a payment from the trust account (utilizing the client sub account) it reduces the Trust Acount Balance, and the other current liability account. However the balance in the sub account does not reflect the withdrawal. What am I missing?
The Trust account should be set up as a Bank "type" account. The customer account that is a sub account of this trust account must also be a bank type account and must have the box checked that says it's a subaccount of that trust account. When you cut a check for whatever expenses and you selected the Write Checks screen, you have to change the bank account at the top of the screen to the correct sub account for that customer. It sounds like you only selected the main account and not the sub account. Go find that transaction in a report and change the bank account to the sub account. Then the money will come out if it and not the main heading account.
I have done these steps for a trust account, ie. seperate accounts for each client, but when I go to reconcile the trust account, I don't have anything showing up to be reconciled. This is despite the fact that QB recommends reconciling the entire trust bank account and not the individual accounts (which is where the reconciling items do show up.) I don't really have to reconcile each client account individually, do I? Or did I miss something?
