Managing trust accounts is a critical responsibility for Australian tax practitioners, requiring strict adherence to regulations set by the Tax Practitioners Board (TPB), Accounting Professional and Ethical Standards Board (APESB), and state-specific rules. While general accounting and bookkeeping software like Xero, MYOB, and QuickBooks Online (QBO) is widely used for business accounting, these platforms lack essential compliance features for trust accounting.
This is where TrustEasy stands out—offering a purpose-built solution designed to meet the unique requirements of trust money management. In this article, we’ll explore why TrustEasy is the superior choice for tax practitioners, focusing on compliance, security, and efficiency.
Understanding Trust Accounting Regulations
Tax practitioners who handle trust money must comply with stringent legal and ethical requirements, including:
- TPB Code of Professional Conduct: Practitioners must keep client funds separate from business accounts and account for every transaction.
- APES 310 (Dealing with Client Monies): Professional accountants must maintain secure records, report accurately, and prevent unauthorized fund usage.
- State-Specific Rules: Certain states require trust account audits, mandatory reporting, and specific reconciliation formats.
Failure to comply can result in penalties, loss of registration, and reputational damage. Unfortunately, most general accounting and bookkeeping software lacks the necessary features to support these compliance requirements.
Why General Accounting and Bookkeeping Software Falls Short
Lack of Trust Money Segregation Controls – General accounting and bookkeeping software does not automatically enforce the required separation of trust and business funds, increasing the risk of unintentional commingling.
Limited Compliance Reporting – Standard accounting platforms do not generate trust-specific reports like audit trails, client trust statements, and mandatory reconciliations, making compliance difficult.
Inability to Prevent Transaction Deletions – Unlike TrustEasy, which locks transaction records for audit purposes, general accounting and bookkeeping software allows users to edit or delete transactions, posing a major compliance risk.
No Built-In Trust Compliance Features- General accounting and bookkeeping software lacks essential trust accounting functions, such as automatic bank reconciliations, trust receipt formatting, and TFN security, making them unsuitable for tax practitioners handling client funds.
The TrustEasy Advantage: A Purpose-Built Trust Accounting Solution
Automated Compliance Controls – TrustEasy ensures that trust funds remain separate from business accounts and automatically tracks transactions to maintain a full audit trail.
Efficient Bank Reconciliation – With automatic bank feeds and an advanced reconciliation process, TrustEasy eliminates hours of manual work by matching transactions efficiently.
Secure Transaction Processing – TrustEasy generates .ABA files for bulk payments and prevents unauthorized access by requiring different users to process fees and payments separately.
Client-Friendly Reporting – TrustEasy simplifies compliance by making it easy to generate trust statements, ensuring transparency for clients with just a few clicks.
Robust Security and Data Protection – TrustEasy safeguards sensitive client data, including Tax File Numbers (TFNs), and prevents unauthorized transaction edits, reducing the risk of compliance breaches.
Real-World Impact: Why Practitioners Prefer TrustEasy
Tax professionals who have switched to TrustEasy report faster reconciliations, reduced compliance risks, and more efficient client reporting.
✅ Saved Time: Automated reconciliations, three-way cashbook features, and split transactions drastically reduce manual work.
✅ Improved Compliance: Users no longer worry about accidental trust fund mismanagement due to built-in controls.
✅ Enhanced Client Service: TrustEasy’s streamlined reporting ensures clients receive clear, detailed trust statements, improving transparency and trust.
✅ Reduced Errors: Unlike general software, TrustEasy prevents accidental transaction deletions—helping firms pass audits effortlessly.
General accounting and bookkeeping software lacks essential trust accounting features—a fact even Xero acknowledges on their website, explicitly stating that they do not support trust accounting.
By choosing TrustEasy, tax practitioners can reduce risk, improve efficiency, and stay compliant—giving them peace of mind while handling client trust funds.
