Best Trust Accounting Software of 2024

Use the comparison tool below to compare the top Trust Accounting software on the market. You can filter results by user reviews, pricing, features, platform, region, support options, integrations, and more.

Overview of Trust Accounting Software

Trust accounting software is a type of software that helps trust and fiduciary professionals, attorneys, accountants, and other financial advisors manage the trusts they administer. This type of software helps these professionals maintain accurate records, meet statutory requirements, easily access client information, and efficiently manage the many facets of their trust operations.

Trust software offers features like automated calculations for various trust transactions such as distributions, expenses, and receipts. It also includes templates to help users quickly generate documents like estate planning reports or letters to beneficiaries. Additionally, it can provide real-time analytics and reports on activity such as current portfolio performance or total income received.

When setting up a trust account within the software there are several considerations to be made including basic information about each client such as name, date of birth and contact details; the amendments that need to be included in the document (if any); the initial deposit amount; whether additional deposits have been made over time; if an investment strategy has been implemented for long-term growth and income; if taxes have been paid or will soon become due; who has access to the funds or assets contained within the trust; if certain investments are not allowed under certain regulations or laws; what reporting requirements exist within different jurisdictions; who should receive notices regarding changes in management or termination of services; and more.

Trust accounting software often integrates with other systems used by financial advisors so they can track client activity without leaving their primary system. The integrations may include general ledger systems for tracking cash flow across multiple currencies, asset management programs for tracking investments by asset class, analytics platforms for gathering data from public resources as well as custom collections developed by users,, real-time tax calculators that help owners plan accordingly when paying taxes on capital gains or dividend earnings, and much more.

In addition to helping users manage trusts in terms of compliance requirements and bookkeeping tasks, trust accounting software can give users greater insight into portfolio performance, potential exposure to risk through creditor claims against assets held by trusts, portfolio diversification recommendations based on analysis of past returns, and other advanced analysis tools. All this allows trustees and their advisers to develop strategies designed to optimize long-term growth while protecting their clients’ interests. Lastly, by automating administrative tasks associated with managing trusts, trustees can reduce costs associated with staff time devoted towards these duties.

Why Use Trust Accounting Software?

Trust accounting software is a type of software used to manage fiduciary accounts and maintain compliance with state laws governing these accounts. Here are some of the top reasons why trust accounting software is used:

1. Automates complex calculations – Trust accounting requires the calculation of complex interest amounts, principal balance updates, and other financial operations not normally associated with basic bookkeeping activities. Trust accounting software uses automated processes to perform these calculations quickly and accurately.
2. Streamlines workflow – By automating processes that would otherwise be done manually, trust accounting software increases overall efficiency by freeing up valuable time for more important tasks. This also helps minimize errors which can happen when trying to manually track balances or calculate interest rates on multiple accounts.
3. Improves accuracy & compliance – Trust account tracking must comply with regulations from various governing bodies, including state and federal laws as well as Tax Code regulations for proper reporting purposes. With trust accounting software you can easily produce accurate statements for auditing taxpayers during legal proceedings or in order to comply with regulatory agencies’ requirements.
4. Increases transparency & provides better insights – A good trust accounting system provides visibility into all transactions, making it easier to trace funds if discrepancies arise against bank records or other sources of data related to clients' assets and investments held in trusts/escrow accounts maintained by trustees (or attorneys). This makes it simpler to detect potential frauds or suspicious activities sooner than later while minimizing the risk of liability associated with non-compliance or mismanagement of assets belonging to a client’s estate or an individual beneficiary's account(s). Additionally, such systems offer powerful financial analytics capabilities allowing trustees/attorneys greater insight into their portfolio performance over longer periods of time compared to manual ledger books which are often limited in scope due only carrying brief information about specific entries within a short timeframe range typically only covering one single month at a time periodically recorded very sporadically throughout the year due lack thereof routine maintenance activity forcing users back into archaic document management practices prone error-prone results due manual data entry limitations usually observed when using paper filing methods among many other traditional hardcopy filing techniques employed until now.

Why Is Trust Accounting Software Important?

Trust accounting software is an essential tool for professionals, specifically those in the bookkeeping and finance industries. It offers a wide range of features to streamline processes and make bookkeeping easier, more accurate, and more efficient.

Trust accounting is the process of organizing financial transactions related to trust funds, such as trusts established for wills or estates. These transactions are often complex and difficult to organize; consequently, proper management of trust accounts requires meticulous record keeping. Trust accounting software simplifies this process by providing clear organization and thorough reporting capabilities.

For accountants working with trust funds, having access to reliable trust accounting tools can mean the difference between accurate records that comply with both legal regulations and industry standards, and inaccurate data that could lead to fines or other liabilities. Trust accounting software enables accountants to quickly generate financial reports with accurate information and ensures the fund’s assets are handled properly each step of the way. With an organized system like this one in place it's possible to effortlessly track all activities associated with trust funds without needing a manual ledger or calculator.

Furthermore, unlike manual ledgers which require regularly updated entries that take up significant amounts of time, trust accounting software can automatically monitor activity within a client’s fund holding account - making things much simpler when preparing detailed tax-related reports at year-end or submitting probate filings for deceased parties. Additionally, these programs provide comprehensive tracking features including checkbook tracking units per unit cost calculations sub-ledgers - allowing users instant access from anywhere at any time which helps increase efficiency significantly when compared to paper-based systems. Finally, these programs even come equipped with audit trails – meaning every transaction can be tracked from start finish so if any disputes arise they can be quickly resolved without needing extensive research into prior records. All together these features combined create a powerful tool for managing trusts accurately and efficiently effectively reducing potential risks associated with incorrect handling as well as resulting penalties due to non-compliance. Overall just about any professional working with trusts should consider using some form of basic trust accounting software as the record-keeping and compliance features ensure accuracy security integrity throughout the entire process – ultimately safeguarding business clients against potential liabilities damages losses related to improper handling mismanagement fraud abuse etc.

Features of Trust Accounting Software

1. Client Ledger: This feature allows you to track the financial transactions of any entity that interacts with your trust account, enabling you to ensure an accurate and secure record-keeping system.
2. Investment Performance Tracking: Many trust accounting programs offer internal investment performance tracking tools, allowing users to monitor the value of their investments over time and analyze how they are performing against benchmarks in order to make informed decisions about portfolio adjustments and allocations.
3. Reporting Capabilities: Trust accounting software typically provide reporting tools so users can generate various types of reports—such as financial summaries, income statements, balance sheets, or cash flow projections—in order to gain insights into their finances and plan for the future.
4. Automation Features: Automated features such as automatic billing and recurring payments (ACH) help simplify financial management tasks like invoicing clients or tracking expenses.
5. Security/Audit Trail Capability: Most trust accounting programs store critical data within a secure server environment with multiple layers of access control, and allow users to keep records of all actions taken within the program for proof that changes weren’t made without approval or authorization from a supervisor or other responsible party.

What Types of Users Can Benefit From Trust Accounting Software?

• Accountants: Trust accounting software provides an efficient and secure way for accountants to manage their clients' financial information, including the tracking of trust funds, payments, deposits, and investments.
• Lawyers: Trust accounting software helps lawyers track past and current expenses associated with legal services provided to clients. They can also securely store documents from their cases and access them quickly when needed.
• Financial Advisors: Financial advisors use trust accounting software to monitor clients’ investments as well as create reports on performance and any changes to portfolios over time.
• Bankers & Trustees: With trust accounting software, bankers can easily manage accounts within a trust fund or other pooled investment vehicles that are owned by multiple parties. This allows them to make sure all funds are properly managed according to industry regulations and laws.
• Non-Profit Organizations: Non-profit organizations rely on accurate financial reporting in order to remain compliant with IRS regulations. Trust accounting software helps keep track of donations received as well as how they are allocated towards specific causes.
• Real Estate Agents & Property Managers: For real estate agents, property managers, landlords and other stakeholders involved in real estate transactions, trust accounting software is a valuable tool for tracking all income-related payments such as rent or security deposits. It also makes it easy for users to keep tabs on all current tenant leases or rental agreements on file.

How Much Does Trust Accounting Software Cost?

The cost of trust accounting software can vary quite a bit depending on the specific features and capabilities that you are looking for. Generally speaking, basic trust accounting software packages tend to start around $100 and can range up to $800 or more for more comprehensive solutions.

Trust accounting software from larger financial institutions or those with added capabilities may cost significantly more. For example, many banks offer specialized trust accounting software designed specifically for their clients, which can range anywhere between $3,000-$20,000 depending on the complexity of the operation and size of organization it is intended for.

If you are a small business owner who just needs basic trust account management tools, then it makes sense to compare different budget-friendly options before deciding on one. When shopping around for a solution that suits your needs best, be sure to look into factors such as feature sets (including reporting functions), customer service and technical support availability, overall ease of use, scalability options and integration with other back office applications you might have in place already. Additionally, if you’re considering cloud-based services due to the flexibility they offer compared to traditional desktop applications, research whether any additional costs may arise due to hosting fees or related charges associated with these services prior to purchase.

Trust Accounting Software Risks

Trust accounting software is a great tool for managing trust accounts and can help to avoid errors and streamline processes, but it also comes with some risks:

• Security Risks: All software is susceptible to hacking attempts. If the software isn’t properly secured, confidential information stored in the system could be exposed to hackers, resulting in data breaches and financial losses.
• Data Loss: No matter how secure the software may be, there is always a risk of data loss due to hardware or software failure. Additionally, if the system doesn’t have sufficient backup procedures in place or regular backups are not conducted on time there may be permanent data loss that cannot be recovered.
• Compliance Risk: Trust accounting systems must comply with a variety of legal regulations. Poorly configured systems that don’t adhere to these laws can put both the client and firm at risk of hefty fines and other sanctions.
• Fees & Maintenance Costs: Maintenance costs for trust accounting systems can add up quickly due to regular security updates and fixes as well as occasional upgrades and/or migrations when new versions become available. Additionally, fees charged by third-party vendors providing services such as technical support or hosting solutions can also increase expenses over time.

Trust Accounting Software Integrations

Trust accounting software can integrate with a number of different types of software. Accounting software such as QuickBooks, FreshBooks, and Xero allow for easy reconciliation with documents stored in trust accounts. Additionally, digital signature services such as DocuSign facilitate efficient and secure client communications related to documentation stored in the trust account. Cloud-based systems like Dropbox make sharing documents between multiple users simpler and more secure than traditional methods. Other document management systems like NetDocuments enable firms to securely store documents related to their clients' trust accounts in one unified platform. Integration with customer relationship management (CRM) platforms allow attorneys to add key information about their clients' trusts into a centralized location that is easily accessible across all devices. Last but not least, calendaring software such as Google Calendar can help track important deadlines related to transactions involving the client's trust accounts or other legal matters.

Questions To Ask Related To Trust Accounting Software

1. Does the trust accounting software offer audit support and reporting tools?
2. How long has the software been in use?
3. Is there a fee associated with using the trust accounting software?
4. Does the trust accounting software comply with applicable state laws, regulations, and rules related to trusts?
5. Does the software allow for multiple user logins and track user activities?
6. Is there an option for setting up automatic bank feeds/connections so that transactions can be automatically imported into the system?
7. Are there options to set up custom data fields and reports to meet specific needs of your trust accounts?
8. Is mobile access available and secure if needed for managing trust accounts outside of traditional office settings or locations?
9. How easy is it to export data from the trust accounting software such as tax or other account-related information when needed or requested by clients or regulatory agencies?
10. What kind of customer service is offered with the trust accounting software should questions arise or technical issues need attention, such as phone support, live chat feature, etc.?