If you properly recorded all trust deposits and disbursements, your internal ledgers will accurately account for the balance of funds held on behalf of each client in every matter. But the statement you get from your bank may not. Due to timing, the bank's statement may not account for every check written or deposit made. Checks you write the end of the month will show up on your internal ledger, but won't clear in time to appear on the monthly statement. The same is true for deposits you recently made.
To monitor this account, compare the bank's monthly statement with your trust ledger for the same period. As illustrated below, you should also check for errors, improper charges, and other inconsistencies:
To See the Reconciliation Report, Read on ...