We had a fruitful discussion with the prominent law firm Cheung, Tong and Rosa’s partner Mr. Da Rosa and his professional staff regarding the use of the Client Advance and Deposit (AD) function.
At the moment, any balance left at the AD account will be allocated to invoices as a form of prepayment. However, Mr. Da Rosa told us that this is not entirely true.
Law firms only act as a trustee to the money deposited in the account. When the transaction is completed, the money will be transferred to beneficiary. This is entirely different from the deposit and payment concept.
In order to do that, we have implemented a series of important changes to the AD function. Additional fields such as Interest Bearing, Not Applicable to Invoicing, Stakeholder’s status, Associated clients, files and other parties will need to be added to make this AD function user-friendly.
In addition, we have added the Bank ID instead of just the chart of accounts for easy tracing of the money flow.