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Financial Reports as Per QBCC formats

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  • Financial Reports as Per QBCC formats
  • By intesolsdev
  • February 17, 2023
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Features Highlights

BuildTrust can play a critical role by offering a robust software solution tailored to the trust accounting framework mandated by the Building Industry Fairness (Security of Payment) Act 2017 (BIF Act) and regulated by QBCC. Here’s how BuildTrust can help:

1. Trust Record Management

  • Requirement: QBCC trust accounting requires trustees to maintain separate ledgers for each trust account, ensuring that all transactions affecting the trust account balance and beneficial interests are accurately recorded within 3 business days. This includes maintaining monthly reconciliation statements and archiving all related documents for up to 7 years.
  • Build Trust Solution: BuildTrust automates ledger creation, transaction recording, and monthly reconciliations, ensuring compliance and easy access to archived records.
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2. Compliance with Legislative Requirements

  • Requirement: Trust account records must be compliant with the BIF Act, including the ability to produce balanced trust ledgers on request for audits by the regulator (QBCC Trust Requirments). The records must also include all necessary details such as transaction dates, references, and amounts​(BIF Act guidelines).
  • BuildTrust Solution: BuildTrust ensures all records meet BIF Act requirements, facilitating smooth audits and compliance checks.

3. Beneficiary and Trustee Ledger Management

  • Requirement: As per QBCC requirements for trust accounting, the software must be able to handle complex transactions between multiple parties, including the management of beneficial interests for beneficiaries (subcontractors) and trustees (head contractors). This includes recording transactions like payment claims, payment schedules, and recipient-created tax invoices (RCTIs)​
  • BuildTrust Solution: BuildTrust can support the management of these transactions by automating the recording of payment claims, schedules, and RCTIs and trust receipts. It can ensure that all beneficiary and trustee transactions are accurately reflected in the respective ledgers, maintaining a clear record of beneficial interests.

4. Monthly Reconciliation and Error Correction

  • Requirement: Trustees are required to prepare monthly reconciliation statements and correct any errors identified in the ledger accounts as per QBCC reporting. Errors must be corrected using either full reversal and re-entry or rebalancing methods​.
  • BuildTrust Solution: BuildTrust can automatically generate monthly reconciliation statements within the required timeframe, comparing trust ledger balances with bank statement balances to ensure accuracy. The software can also provide tools for error correction, offering full reversal and rebalancing options to correct any discrepancies.

5. Regulatory Audits and Record Accessibility

  • Requirement: Trust records must be accessible for regulatory audits, and the software should be capable of producing records and reports as needed for compliance checks​(Software FAQs)​(BIF Act guidelines).
  • BuildTrust Solution: BuildTrust provides easy access to all required records and reports, ensuring readiness for audits.

6. GST and Retention Management (RTA)

  • Requirement: The software must correctly manage GST in payment claims and retention amounts, ensuring that these are included in the ledger records​.
  • BuildTrust Solution: BuildTrust can automatically calculate and include GST in all relevant transactions, ensuring that the ledger records the full beneficial interest amount, including GST. It also supports the management of retentions, ensuring these are accurately recorded and managed according to the BIF Act. BuildTrust is probably the only software where PTA and RTA are interwoven to record general ledger entries automatically.

Conclusion

BuildTrust can significantly enhance compliance with the QBCC Trust Accounting Requirements by automating and streamlining trust account management. The software’s ability to maintain detailed and accurate trust ledgers, ensure timely reconciliation, and provide comprehensive audit-ready records makes it an ideal solution for meeting the trust accounting requirements for builders or head contractors.