Trust Bank Reconciliations
Trust bank reconciliations are a key internal control over a law firm’s assets. A reconciliation is proof that there are sufficient funds in trust; it compares what should be in trust based on your books versus what is in the bank account.
Performing monthly reconciliations allows firms to:
- locate mistakes in their books or bank statements early;
- track problematic transactions (e.g., outstanding transactions, automated pre-authorized debits, bank fees incorrectly incurred on the law firm’s trust accounts and any other bank errors); and
- identify fraud or accounting errors.
Review the full resource for more information on what to include in a trust bank reconciliation package and how to review one.