Guaranteed vs Expected Collections
firmTRAK has developed a trust report to “at a glance” assess the value of your client trust accounts based on the current trust balance compared to billable time, billable expenses, and outstanding AR.
All columns are sortable and searchable enabling easy review of your current trust balances by matter.
Guaranteed Collection refers to all billable time and expenses that will be covered by the Trust Balance or Threshold Value, in the work in process. Expected collection is the difference, not covered by the Trust Balance or Threshold Value.
Example: Matter A has $1,500 in billable time (including WIP and accounts receivable) and $500 in billable expense for a total of $2,000. Their trust balance is $750. This would breakdown as a value of $750 in Guaranteed Collection and $1,250 in Expected Collection. To see the staff breakdown of billed time and expense for a particular matter, click the expand toggle on the left side of the report.
Threshold Value can be set for each matter in firmTRAK and functions as an unofficial Trust Balance. This way, the firm can review each hypothetical collection that is guaranteed or expected on each matter.