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What is a Monthly 2-Way Trust Account Reconciliation?

A full 3-Way Reconciliation is required to be made each month. The Client Security auditors will request these documents when they audit your trust account. You perform the 3-Way Trust Account Reconciliation in the following manner:

  • Balance the Client Subaccount Ledgers (and Service Charge Subaccount Ledger if You Have One)
     
  • Total the Subaccount Ledger Balances
     
  • Balance the General Ledger / Account Checkbook
     
  • Compute the Adjusted Bank Balance Based on Bank Statement, Unprocessed Checks
     
  • Total of Subaccount Balances = Checkbook Balance = Adjusted Bank Balance

Tip: A monthly statement from your bank is a vital part of the reconciliation process.  If your bank has been providing statements on a quarterly basis instead of monthly, you will need to make arrangements to receive monthly statements or access monthly statement information electronically.
 

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