Trust receipt issuing
Trust receipting errors are a common finding in external examinations. This checklist walks through the standard steps.
This is a 12-step checklist for issuing a trust account receipt in NSW. It covers the required particulars, cheque and EFT receipts, numbering and records.
The checklist
Identify the source of funds
Confirm who the payer is, the matter and the purpose. Unknown funds must not be banked to trust.
Confirm the funds are trust money
Only trust money goes into the trust account. Controlled money and transit money have separate handling.
Use the correct receipt form
Receipts must contain the date, payer, matter, amount, form of payment and receipt number.
Number sequentially
Receipts must be numbered sequentially and no number is skipped.
Record the form of receipt
Cash, cheque, direct deposit, credit card — record the method used.
Issue within time
Receipts for cash must be issued immediately; others as soon as practicable.
Deliver the original
Provide the original receipt to the payer and retain a copy or electronic version.
Record in the trust cash book
Record the receipt in the cash book on the day of receipt.
Post to the client ledger
Post to the individual client matter ledger — never bank to the general ledger.
Bank the funds within time
Trust money received must be banked by the next business day.
Retain backup
Retain copies of receipts for seven years under the Uniform Law.
Address any discrepancy immediately
Any shortfall or error must be raised with the principal and recorded immediately.
When this checklist applies
Use this checklist every time trust money is received. Train all bookkeeping staff to the same standard.
Common pitfalls
- Banking unknown funds into trust
- Receipts missing the prescribed particulars
- Sequential numbering broken
- Delays in banking
- Failing to retain records for seven years
Run this checklist on a real matter
Quillio helps generate compliant trust receipts and monthly reconciliations in current NSW format. See /practice-areas/commercial-lawyers.
This checklist is a general guide. Always follow the current Uniform General Rules and your firm's internal procedures.
Use this checklist on your matter.
Quillio can run this checklist on a specific NSW conveyancing matter — confirm each item, calculate adjustments, and generate the supporting documents. The free trial requires no credit card.
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