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.
