Real estate transactions involve the transfer of money to and from many parties. Real estate firms need to keep careful track of all these funds, which can be complicated especially when several sales are in progress. Easy HUD helps you complete the HUD 1 settlement statement but you will also need a system to track your trust accounting.
Manual Trust Management: Administrative Nightmare
Some firms track trust transactions manually. The system may involve copious handwritten notes, or a complicated spreadsheet that documents all receipts and payments associated with a sale. This system might work for a firm that makes very few sales, though we don’t recommend it even in that case, but it is a disaster waiting to happen when you get busy. Often what happens is a single practitioner starts out using such a system and continues to do so as the business grows. Then one day a mistake is made, a trust account is overdrawn, and a government auditor gets very upset.
QuickBooks: A Good Solution
Intuit makes great software and QuickBooks is a wonderful business accounting solution for most companies. Easy HUD can export your ledger to a file that can be read into QuickBooks so you can handle your trust administration. Easy HUD’s help system gives step-by-step instructions on how to set QuickBooks up for trust administration, and how to export the ledger for import into the other software. However, although QuickBooks is a decent option if you are already using that software in your business, you are going to find trust administration is easier and less prone to errors if you use a dedicated escrow software solution like Easy Trust.
Easy Trust: A Better Solution
Easy HUD has been designed to integrate with Easy Trust for a complete real estate accounting software solution. Since the products have been designed to work together, you will find that using them both is a little easier than trying to transfer data between two products designed by different companies. Easy Trust handles all transactions, tracks each set of transactions separately even if all your trusts are kept in the same bank account, issues reminders of low trust balances, and generates the three-way reconciliation reports required by most states.
If you are already using Easy HUD then you can try out a demo of Easy Trust to discover how simple trust management can be. Check out our full line attorney practice management software products at our web site.