Overview
Trust accounts hold buyer deposits that the brokerage manages on behalf of clients. BackOffice provides full visibility into trust balances and activity, with every action syncing to QuickBooks.
Trust deposit management lives under Finances > Trust deposit in the transaction sidebar. The Actions button on the Trust deposit page gives you access to all trust deposit actions.
Trust deposit actions
Action | What it does |
Edit expected trust | Update the expected deposit amount |
Add deposit | Record that a deposit has been received |
Refund deposit | Process a deposit refund |
Apply deposit | Apply trust funds toward an open invoice |
Pay bill | Pay a bill directly from the trust account |
Make transfer | Transfer funds between trust and another bank account |
Generate statement | Create a trust account statement |
How do I record a trust deposit?
Recording a trust deposit is a two-step process: first you enter the expected amount, then you confirm receipt.
Step 1: Create the expected deposit
Open the transaction > Finances > Trust deposit
Click Actions > Add expected trust to add the expected deposit
Enter the expected deposit amount and due date.
Click Create
The deposit appears in your trust account ledger and syncs to QuickBooks automatically.
Step 2: Record receipt
Once the funds have actually been received:
On the Trust deposit page, click Actions > Add deposit to record that the deposit has been received
Fill the payer, payment amount, and payment method fields.
Enter the payment date (when the funds were received)
Enter the deposit date (when the funds were deposited into the trust account)
Click Create
The trust deposit now shows as fully received.
How do I apply trust to an invoice?
After you've posted income and expense to the general ledger, you'll have an open invoice (typically from the seller's lawyer). You can apply the trust deposit toward that invoice.
On the Trust deposit page, click Actions > Apply deposit and fill the required fields
Under the Outstanding transactions section, select the open invoice to apply the deposit against
When all set, click Create
The deposit amount is applied, reducing the balance due on the invoice
In a typical transaction, if the invoice is larger than the trust deposit, the remaining balance is collected separately from the lawyer.
How do I transfer trust funds?
When paying commissions from a commission trust account, you'll transfer the applied trust funds into commission trust.
On the Trust deposit page, click Actions > Make transfer
Select Commission Trust (or your applicable bank account) as the Transfer to destination
Confirm the transfer amount
Click Create
After the transfer, the trust account liability for this transaction should be zero.
How do I pay bills from trust?
BackOffice supports paying bills directly from your trust account. This is relevant for brokerages in provinces where certain transaction expenses must be paid from trust funds before any transfer to operating accounts.
On the Trust deposit page, click Actions > Pay bill
Select the bill to pay under the Outstanding transactions section
Click Create
Provincial Considerations for BC and Alberta
In British Columbia and Alberta, certain expenses must be paid directly from the trust account rather than transferred to operating first. BackOffice supports this through the Pay bill action on the Trust deposit page.
Consult your provincial regulatory body or compliance team for the specific rules that apply to your brokerage.
The trust-to-closing flow
Step | What happens | Where it happens | Output / result |
1 | Buyer submits deposit | Trust | Deposit initiated |
2 | Record expected deposit → confirm receipt | Trust | Trust receipt confirmed |
3 | Post income & expense to GL (invoice to lawyer) | GL | Invoice created |
4 | Apply trust deposit to open invoice | Trust/AR | Invoice reduced/paid |
5 | Transfer funds to commission trust | Trust > Commission Trust | Funds moved |
6 | Trust balance returns to $0 | Trust | Trust cleared |
7 | Receive remaining funds from lawyer | Commission Trust | Full closing funds in commission trust |
8 | Pay all bills | Commission Trust | Disbursements complete |
9 | Transfer broker profit | Commission Trust > Operating | Profit moved to operating account |
How do I create a trust bank account?
If you haven't set up your trust bank account yet:
In BackOffice:
Go to Accounting > Add account
Select the type. group, number, and name it
Name it clearly ("Trust Account" or "Trust – [Brokerage Name]")
Click Create
In QuickBooks:
Create a matching account (Other Current Liabilities > Trust Accounts - Liabilities)
Ensure the account name matches exactly between both systems