How to Keep Your Three-Way Reconciliation Accurate and Efficient

CosmoLex Team

Three Way Reconciliation

Most lawyers will handle a client trust account at some point in their careers. Settlement funds (ex: personal injury), retainers, third-party funds, or judgment funds all use client trust accounts. In particular, the retainers that go into client trust accounts help ensure a law firm gets paid in a timely fashion for the work they do. Anyone who’s ever faced … Read More

How can I do a three-way reconciliation?

CosmoLex Team

For law firms, conducting regular three-way reconciliations[1] is not an option if they handle trust. Bar associations require these reconciliations as a way to verify that lawyers are fulfilling their fiduciary responsibilities and recording and tracking client funds properly. Many people are familiar with the traditional two-way reconciliations where you compare your checkbook balance to your bank statement. If the … Read More

What is a three-way reconciliation?

CosmoLex Team

Everyone who has balanced a checkbook knows how to perform a two-way reconciliation – you verify that the balance shown on your bank statement, when adjusted for uncleared deposits and withdrawals, matches the balance shown in your books or checkbook.[1] Once you have performed a two-way the reconciliation on the trust account, however, you have to perform a third reconciliation … Read More

Why do I need to do a three-way reconciliation of each trust account?

CosmoLex Team

If you practice in Canada, then you are required to perform a three-way reconciliation of individual and pooled trust accounts on a monthly basis.[1] In the United States, as of May 2019, 26 states (AL, AZ, IL, IA, MA, MO, NJ, SC, CA, CT, FL, HI, LA, MD, MS, MT, NH, NM, NC, OH, PA, TN, VT, WA, WI, WY) require … Read More