Trusts often track beneficiary loan accounts in the current liabilities section of financial statements. LodgeiT offers two accounting methods, each balancing simplicity in software versus detailed reporting. Choose based on your workflow and upcoming automation features.
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Option A: Closing Balance Only
Record just the net closing balance for all beneficiaries combined. (watch the video)
Advantages: Easy setup in most accounting software; fewer lines reduce errors for beginners.
Disadvantages: Requires manual entries in LodgeiT's reporting module; does not support automated data import.
Option B: Full Sub-Accounts
Track separate sub-ledgers for each beneficiary, including profit shares, capital contributions and drawings (watch the video).
Advantages: LodgeiT handles entries automatically; offers detailed views like profit in dedicated accounts; enables future automated post-back.
Disadvantages: More complex in accounting software without LodgeiT integration; needs prior-year balance adjustments per beneficiary.