A monthly trust account reconciliation checklist
This is a practical checklist for the monthly trust review, written for firm owners and administrators. It complements our explanation of three-way reconciliation by focusing on the routine: what to pull, what to compare and what to keep.
Gather
Pull the trust bank statement, the trust account register from your accounting system and a report of every client ledger balance as of the same date. Note any outstanding deposits or checks that have not cleared.
Compare
Adjust the bank balance for items in transit, then confirm it equals the register balance. Next, confirm the total of all client ledgers equals the register. Any difference points to a recording error or a misallocated transaction.
Review and keep
Look for negative client balances, balances with no activity for a long period and fees that were earned but not yet transferred. Sign and date the reconciliation and store it with the supporting reports.
Before you sign off
- All three balances agree after adjustments
- No client ledger is negative
- Stale balances have a follow-up note
- The reconciliation is signed, dated and stored
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Frequently asked questions
How is this different from three-way reconciliation?
It is the same core comparison, laid out as a monthly routine with the review and record-keeping steps around it.
Is this law firm bookkeeping guide advice?
No. Sam's List writes these guides for education. They describe common questions and processes, not advice for your specific situation.
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