How do I perform a monthly trust reconciliation

Monthly trust reconciliations are mandatory in all Australian jurisdictions and must be completed within 15 working days of month-end.

Steps in Law App:

Navigate to Reports > Trust Reconciliation.

Choose the trust account and reconciliation month.

Ensure all trust receipts and payments have been entered for the month.

Compare the following:

Trust Ledger Closing Balance

Bank Statement Closing Balance

Outstanding Receipts and Payments

Enter bank statement balance and check for variances.

Investigate any mismatch using the reconciliation variance tool.

Finalise and lock the reconciliation once all figures balance.

Tip: Save a PDF copy for audit. Use the “Add Note” feature to record explanations for delays or discrepancies (e.g., stale cheques, posting errors).

Reminder: In NSW and VIC, failure to reconcile on time may trigger a breach notice or show up during your external examiner audit.