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.