Trust reconciliation, live

Ravi and Nina reconcile a trust account from start to finish, live, using an anonymised month from a real firm. You will see the adjusted bank balance, the cash book and the client ledger total brought into agreement, and what to do when they will not agree.

It is for bookkeepers, practice managers and the principals who sign reconciliations, whether you run a trust account in Australia or an IOLTA account in the US. No accounting background is needed. Bring a recent reconciliation of your own, with client names removed, if you want to follow along.

Why watch it live

Most guides to trust reconciliation show a month that balances. Real months often do not, at least not on the first attempt. Watching one done from start to finish, including the part where a difference turns up, is the fastest way to see how an experienced bookkeeper thinks.

The month we use is anonymised from a real firm, with names, amounts and matter numbers changed. It includes the things that catch people out: a deposit that cleared a day late, an unpresented cheque from two months ago and a receipt posted to the wrong ledger.

How the session runs

The session is 45 minutes on a standard webinar link, with no software to install. Nina shares her screen for the reconciliation and Ravi moderates. Questions go in the chat at any point, and the hosts take them in the last 15 minutes. Live captions are available, and the slides are sent with the recording.

If you cannot make the live time, register anyway. You will receive the recording and can send a question in advance for the hosts to answer during the session.

Agenda

1. A month end, from bank statement to sign-off

2. Tracing a difference to its cause

3. What to keep for your trust audit

4. Your questions, answered live

What you will see

Each part of the session follows the reconciliation as it happens on screen, so you can match each step to your own process.

• A month end, from bank statement to sign-off: Nina adjusts the bank balance for uncleared deposits and unpresented cheques, then compares it with the cash book and the total of client ledgers.

• Tracing a difference to its cause: a small difference appears, and Nina works back to the last date the three records agreed, then finds the posting that caused it.

• What to keep for your trust audit: Ravi shows the folder Nina keeps for each month, with the signed report, the bank statement and a note on every exception.

• Your questions, answered live: the last 15 minutes are for questions sent in at registration and during the session.

Nina works at the pace she does on a normal month end, and Ravi stops her at each decision to explain why. Expect to see the routine parts as well as the tricky ones. Most of a reconciliation is routine, and the routine is what keeps the tricky parts rare.

Before you join

• Have a recent reconciliation of your own to hand, with client names removed, if you want to compare as you watch.

• Check whether your firm reconciles daily, weekly or monthly. The session covers all three.

• Send a question with your registration. The common ones shape the second half of the session.

• Join a few minutes early to check your audio. The session starts on time.

If several people at your firm are coming, consider watching together. The discussion afterwards, about how your own reconciliation compares, is often as useful as the session itself.

Your hosts

Ravi Kapoor is a billing specialist at Filebird and ran billing at a 30-lawyer firm. Nina Kovac is the bookkeeper at Northbank Law, where she has kept the trust books for six years. She will show the daily routine she runs each morning before the phones start.

The session runs for 45 minutes, and everyone who registers gets the recording. Send questions in when you register and we will build the common ones into the session. Check with your law society or state bar how it counts towards your CPD points (CLE credits in the US).

Common questions

Do I need to use Filebird to get value from the session? No. The reconciliation is shown in Filebird, but the method is the same in any system or spreadsheet, and Nina explains each step in general terms.

Is it relevant outside Australia? Yes. The three records are the same for an IOLTA account in the US, and Ravi points out where the rules commonly differ. Your own law society or state bar’s rules always come first.

Will the recording include the questions? Yes. Everyone who registers receives the full recording, including the live questions, within a day of the session.

How does it count towards CPD or CLE? That depends on your law society or state bar. You will receive a certificate of attendance with the session details, which most firms find enough to record the activity.

Can I ask about my own firm’s reconciliation? Yes, in general terms. Leave out client names and account details, and the hosts will answer as specifically as they can in a public session. For anything detailed, book a call afterwards.

After the session

You will receive the recording, the slides and the monthly trust reconciliation checklist, a one-page template you can adapt for your firm. Nina’s daily routine is written up in full in our guide, Trust accounting without the dread. If you want to see how the daily reconciliation would work on your own trust account, book a call with the Filebird team.