Not performing a Three-Way Reconciliation is the #1 way attorneys get out of compliance with state bar rules.
See how to do a proper Three-Way Reconciliation
Monthly Reconciliations in 4 Minutes
I went from spending 4 hours every month combing through and balancing spreadsheets, trust ledgers, checks, and bank statements to just 4 minutes a month using TrustBooks.
Jeremy Danilson
Danilson Law PLLC
What is Three-Way Trust Reconciliation?
A Three-Way Reconciliation compares your bank balance to your trust ledger balance to the sum of your individual client ledger balances. This report gives you confidence that your internal records (trust ledger and client ledgers) reconcile back to your bank statement.
Why does my State Bar require a Three-Way Trust Reconciliation?
Thre Three-Way Reconciliation is your State Bar’s way to quickly see if you are maintaining client ledgers and if any of the client ledgers have gone into the negative.
How does TrustBooks automatically perform Three-Way Trust Reconciliations?
TrustBooks always keeps the client records and the firm trust records in sync. It’s part of our secret sauce. this allows a Three-Way Reconciliation to automatically get generated when you do your month-end reconciliation process… no extra steps needed.
When are reconciliations in QuickBooks and other accounting software NOT Three-Way Reconciliations?
QuickBooks doesn’t make it easy to track client ledgers. The concept of a client trust ledger is not part of the QuickBooks design. A reconciliation in QuickBooks only compares the bank statement to the ledger leaving out the very important piece of individual client ledgers and ensuring the sum of your client ledgers matches your bank statement and trust ledger.
Your trust accounting software must meet
the following 4 requirements.
Track all money in and out of your trust bank account at the client level.
Inability to deficit spend or take clients into the negative.
Generate a Three-Way Reconciliation Report showing your bank balance matching your trust ledger matching the sum of your client balances.
Use a software 100% focused on legal and designed for law firms… like TrustBooks.
