Step-by-Step Guide: Changing Trust Accounts

Overview

When changing trust accounts, the new bank account must first be set up in the database. The change also needs to be carefully timed so tenant invoicing, receipting, and reconciliation are not disrupted.

Step 1: Set up the new bank account

Once the new trust bank account has been opened, provide the bank account details so the additional account can be set up in the database.

Why this matters:
The system must have the new account recorded before any properties can be temporarily switched to it.

Step 2: Inform tenants in advance

Advise all tenants clearly that the trust account details will be changing.

Recommendation:
Send this communication before tax invoices are generated.

Why this matters:
This helps avoid payments being made to the wrong account and reduces confusion during the changeover period.

Step 3: Wait until daily receipting and bank reconciliation are complete

The change should only happen once receipting for the day has been completed and the bank has been reconciled.

Why this matters:
This ensures all transactions are finalised before the account details are changed in the system.

Step 4: Arrange the temporary account change in the system

Depending on when tax invoices are generated (usually around the 15th, if applicable), the implementation team can temporarily update the bank account details for the relevant properties to the new account.

Why this matters:
This allows the upcoming tenant invoices to display the new bank account details.

Step 5: Raise and generate tenant tax invoices

Once the bank account details have been temporarily updated, raise and generate the tax invoices for tenants.

Important:
After this has been completed, let the team know immediately.

Why this matters:
Once invoices are issued, the account details can then be switched back as needed for ongoing processing.

Step 6: Have the bank account details changed back

After tenant tax invoices have been generated, notify the team so the implementation team can change the bank account details back in the system.

Why this matters:
This keeps the system aligned with the correct operational account setup after the invoice run is complete.

Step 7: Do not generate one-off invoices during this period

Do not generate any one-off invoices while the temporary account change is in place.

What to do instead:
You may raise the charge, but leave it ungenerated until it can be included with the next month’s invoice run.

Why this matters:
This avoids inconsistencies and prevents invoices from showing incorrect bank account details.

Step 8: Transfer funds received into the new trust account back to the old account

Any funds received into the new trust account during this temporary period should be transferred into the old trust account.

Why this matters:
This allows you to continue receipting and paying out funds from the account currently being used for operations.

Step 9: Send tenants a reminder before payment due date

Before the invoice due date, send tenants a reminder about the bank account change.

Why this matters:
A second reminder reduces the risk of tenants paying into the wrong account.

Step 10: Close off the month

Complete your normal month-end close-off process.

Why this matters:
The account setup should only be fully updated after month-end processing is finished.

Step 11: Notify the team after month-end close

Once the month has been closed off, let the team know.

Why this matters:
At that point, the implementation team can update the bank account details as needed for the next stage of processing.

Step 12: Raise one-off charges if needed

After the month has been closed and the account details have been updated, you can raise any one-off charges if you want them sent before the next monthly invoice run.

Why this matters:
This is the safest time to resume normal invoicing activity.

Step 13: Transfer any funds received into the old account across to the new account

After the changeover, if any funds are still received into the old bank account, these will need to be transferred into the new trust account.

Why this matters:
This ensures funds end up in the correct active account once the transition is complete.

Key reminders

• Communicate the change clearly to tenants.

• Do not generate one-off invoices during the temporary switch period.

• Make sure transfers between old and new trust accounts are completed as needed.

• Keep the implementation team informed at each key stage.