The Importance Of The 3-way Reconciliation Report

By Author: Mayank Kapur
Total Articles: 277
Comment this article

When it comes to your trust accounting, there's one requirement that affects lawyers and other legal professionals-and doesn't exist in most other professions. It's called the 3-way reconciliation report.
As the name suggests, 3-way reconciliation balances three things. It balances your internal books against your trust account bank statement. Then, it reconciles individual balances of all of your matters with internal book and bank balances.
Contrast this with an ordinary reconciliation in which you simply balance your books against your bank statements. The per-matter balancing act adds a crucial step-and if you don't have the right software, it's a time-consuming one, too.
So: why does the most state bar trust bookkeeping guidelines make this a mandatory requirement?
As with any ethical rule, the policy is intended to guard your clients against negligence-and worse. If you simply balance your books, there's no way to know if there's been any misappropriation of funds among any of your matters. The procedure is also intended to eliminate opportunities for masking fraud under the auspices of another ...
... client's matter.
A 3-way reconciliation for your trust or escrow account is truly the only way to know what is happening in your trust accounts . Because all of your balances are being broken down by matter, then you-and any auditors who might come sniffing around-can spot any discrepancies immediately.
Luckily, our trust fund accounting software makes things super easy. It does what all good technology should. It takes out any heavy duty lifting, and the laborious mechanical work. And it simply automates everything.
Enter the numbers once into Easy Soft's Easy Trust software, and the software generates all the numbers for you. You don't have to think about it, or figure out how to do it. You don't have to play accountant at all. With the click of your mouse, it's there! You simply have to remember to do it.
Easy, right? We know.
To learn more about our trust accounting software, call us at 800 905 7638.

Author Bio

Easy Soft specializes in helping law firms automate their processes with law office software. Easy Soft has automated software solutions for virtually every practice area, from case management, document assembly and time & billing, to debt collection, amortization and escrow software.