View Categories

Three-way Reconciliation ( Trust)

1 min read

Three-way trust reconciliation is a process that ensures a law firm’s internal records (trust ledger and client ledgers) match the official bank statement (trust account) for a trust account. It’s vital for law firms because it prevents misused funds, ensures accurate client billing, and helps maintain compliance with ethical rules. LawAccouning Provides a screen to get the LawFirms one click and real-time reconciliation of Trust report.

  • Navigate to the Trust Management APP
  • Click the Three Way Reconciliation tab.
  • Enter the following information.
    • Bank: Select the Trust Bank you want to do the Reconciliation
    • Till: Date till you want to generate the report. for example, I want to run the
      report as of 3/24. system will bring the records based on the date
      mentioned.
  • Click “Next” to initiate the reconciliation process. The system automatically gathers data from:
  • Trust Bank: Securely linked through Plaid, this section displays your current trust account balance.
  • LawAccounting Transactions: Receipts, deposits, disbursements, and withdrawal slips not yet cleared by the bank are included here, providing a comprehensive view of all trust account activity.
  • Client Ledger Trust Totals: This section reflects the total funds allocated to
    each client from the trust account transactions.

Navigation:
 

  • Left Red Block: This combined view presents the “Total Trust Balance” which includes your current bank balance and any outstanding uncleared transactions.
  • Right Top Blue Block: This section displays the “Total LawAccounting Transactions” (debits and credits) impacting your trust account.
  • Right Lower Green Block: This section shows the “Client Ledger Trust Totals” representing the sum of funds allocated to each client.
  • Download Button (Top Right): Download the reconciliation report in PDF format for your records.
  • Edit Button (Pencil Icon): Modify initial parameters like trust bank selection and date range for a different reconciliation period.

Powered by BetterDocs

Leave a Reply

Your email address will not be published. Required fields are marked *