The Unique Bookkeeping Demands of a Conveyancing Practice
A conveyancing practice handles large amounts of client money, purchase deposits, settlement funds, government duty payments, and disbursements, that must never be mixed with the practice's own operating funds. This creates a set of bookkeeping obligations that go well beyond what most small business bookkeepers are trained to handle.
Trust Account Management and Compliance
Under the Conveyancers Act 2006 (Vic), licensed conveyancers who hold trust money must maintain a statutory trust account, reconcile it monthly, and have it externally audited by a registered company auditor each year. The Business Licensing Authority (BLA) oversees compliance, and non-compliance can result in licence suspension or cancellation.
Trust money includes purchase deposits held prior to settlement, settlement adjustments held pending final figures, and any other client funds. The bookkeeper's role is to ensure the trust account reconciliation is accurately maintained in your trust accounting software and that the practice's own fees and disbursements are clearly separated when drawn from trust.
Settlement Funds Tracking and PEXA Reconciliation
Most Victorian property settlements now use PEXA, the Property Exchange Australia electronic settlement platform. PEXA generates a financial settlement statement for each transaction, detailing purchase price, transfer duty, adjustments, disbursements, and professional fees. Every line on that settlement statement must be reconcilable in your trust account records and, ultimately, in your practice's income and expense accounts.
Without a proper PEXA reconciliation workflow, it is easy for small errors to accumulate across multiple settlements, creating discrepancies that only become apparent at trust account audit time, when they are difficult and time-consuming to trace back.
Matter-Based Billing and Income Recognition
Conveyancing income is matter-based, each conveyance generates a professional fee, typically drawn from trust at settlement. Tracking income by matter in Xero requires a setup that most generic chart of accounts do not include. True Tally configures Xero with matter-based income tracking so you can see revenue per transaction, review work in progress across open matters, and understand the profitability of different transaction types.
Land Transfer Duty and Disbursement Management
Land transfer duty (stamp duty) in Victoria is a significant cost that passes through the conveyancing trust account. Tracking duty payments, First Home Buyer duty concessions, and other disbursements correctly is essential for both client reporting and your own tax records. True Tally ensures disbursements are correctly categorised as pass-through items and are never incorrectly recognised as practice income.
What True Tally Does for Conveyancers in Geelong
- Monthly trust account reconciliation support ensuring your trust account records are accurate and audit-ready
- PEXA settlement reconciliation each settlement statement matched to trust account entries and practice income
- Matter-based income tracking in Xero professional fees recorded per conveyance for accurate revenue reporting
- Disbursement management land transfer duty, PEXA fees, search costs coded as pass-through items
- Accounts payable disbursements to government agencies, search companies, and other suppliers managed and reconciled
- Payroll for conveyancers and support staff STP-compliant payroll, superannuation, and leave entitlements in Xero
- BAS lodgement GST on professional fees lodged correctly each quarter
- Year-end accounts preparation accounts reconciled and packaged for your tax accountant
Frequently Asked Questions, Conveyancing Bookkeeping
How do conveyancers manage trust accounts in Xero?
Conveyancing trust accounts must be kept separate from the practice's general operating funds. In Xero, a trust clearing account can be set up to mirror the trust account balance and record the movement of settlement funds. The bookkeeper ensures the trust account reconciliation is maintained correctly and that funds drawn as professional fees are properly transferred to the operating account and recorded as income.
What are the bookkeeping rules for conveyancers in Victoria?
Under the Conveyancers Act 2006 (Vic), licensed conveyancers who hold trust money must maintain a statutory trust account, reconcile it monthly, and have it externally audited annually. Trust money includes deposits held on behalf of purchasers and settlement adjustments. The practice's own fees must be clearly separated from trust funds. Non-compliance can result in disciplinary action by the Business Licensing Authority.
How often should a conveyancer reconcile their trust account?
Victorian regulations require monthly trust account reconciliation at minimum. Most active practices reconcile after each settlement to ensure funds are correctly distributed. True Tally recommends monthly reconciliation as a baseline, with additional reconciliations during high-volume settlement periods.
Can Xero handle PEXA settlement reconciliation?
PEXA generates a settlement statement for each transaction that must be reconciled against the trust account and practice income records. True Tally sets up a PEXA reconciliation workflow in Xero that matches settlement disbursements, transfer fees, and professional fees to the corresponding trust account movements and bank transactions.
Is your current bookkeeper adding real value?
A few honest questions worth asking about whoever keeps your books:
- Bank reconciliation is your bank account in Xero actually checked against your bank statement every month, not just left to auto-match?
- Speed that adds value are your accounts reconciled quickly enough that your management reports are current and worth acting on, not weeks behind?
- On-time compliance is your Single Touch Payroll being filed on time, every pay run?
Cheaper service does not always mean better service. We invest in continuing professional education so we deliver genuine value, not just the lowest price. As we get to know your business for the long term, we review your expense-saving opportunities and recommend better setups and cost-effective ways to cut your overheads. Honest, candid, and on your side.
Book a free 20-minute reviewLet's Talk About Your Conveyancing Practice
Book a free 20-minute call. We'll review your current bookkeeping and trust account management and explain exactly what proper conveyancing bookkeeping looks like.
Book My Free CallCall · 0468 159 950 · info@truetally.com.au
