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Manage Project Trust Account

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  • By intesolsdev
  • February 17, 2023
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Features Highlights

    Understanding Project Trust Accounts in QLD:

  • What is a Project Trust Account?
    A Project Trust Account (PTA) is a statutory trust account used in Queensland’s building and construction industry to protect subcontractor payments. PTAs are designed to ensure that project funds are kept separate from a head contractor’s general business funds.
  • How a Project Trust Account Works?
    A PTA functions as a dedicated trust account for a specific construction project above a certain threshold. The head contractor manages this account, depositing all project-related payments and disbursing funds to subcontractors and suppliers. Key steps include setting up the account with an approved financial institution (ANZ, CBA, HSBC, Macquarie Bank, NAB and Westpac only), depositing project funds, making payments, and maintaining detailed transaction records.
management project trust laptop
management project trust
  • Project Trust Account Features: PTAs must comply with specific requirements:
    Eligibility: Required if project trust work exceeds 50% of the total contract value.
  • Fund Management: Only project-related funds can be handled in the PTA.
  • Recordkeeping: Detailed records of all transactions based on double entry accounting method and reporting based on a date range are mandatory.
  • Compliance: Non-compliance can lead to significant penalties.
  • Project Trust Account QLD:
    In Queensland, the Building Industry Fairness (Security of Payment) Act 2017 mandates the use of PTAs for qualifying contracts. This legislation aims to safeguard subcontractor payments by ensuring proper management and segregation of funds.
  • PTA Software:
    BuildTrust is a specialized software designed to manage PTAs and RTAs efficiently. It automates tasks such as invoice scanning, importing payment schedules via excel directly or from progress payment platform, payment processing by generating .aba files, reconciliation, and compliance reporting, reducing errors and ensuring adherence to regulations.
  • Project Trust Account Software
    Effective PTA software like BuildTrust offers features such as:
  • Automated Payment Processing: Handles invoice scanning and generates .aba files
  • Reconciliation: Matches payments and invoices automatically via bank reconciliation
  • Reporting: Generates detailed compliant trust reports  (trust account ledgers and reconciliation statements) and financial reports like P&L Report and Trial balance. BuildTrust is probably the only software that produces trust and financial reports at one place.
  • Security: Meets ISO27001:2022 standards for data protection.
  • Integrations: It integrates with Procore and also allow users to import subbies details and payment schedules from Early Pay, Xero, MYOB and QBO.
  • Conclusion:
    Project Trust Accounts are crucial for compliance in Queensland’s construction sector. Using BuildTrust’s PTA software simplifies management, ensures regulatory compliance, and enhances accuracy. Contact us today for a free demo and see how BuildTrust can streamline your PTA management.

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