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Trust Account Reconciler

Three-way reconciliation without the three-way headache

Helps you reconcile trust-account records by matching bank activity to client and master ledgers, then drafting a three-way reconciliation report for your review.

House RecipeWork5 min

INGREDIENTS

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PROMPT

Create a skill called "Trust Account Reconciler" for a lawyer. I will provide my trust/IOLTA bank statement and ledger records. Match transactions to client-ledger and master-ledger entries, perform a three-way reconciliation, and draft a report showing balances, outstanding checks, deposits in transit, unmatched items, and any negative client balance. If I provide my state’s formatting requirements or sample report, follow that format. Flag exceptions for review instead of forcing a match.

How It Works

IOLTA/trust account reconciliation requires matching your bank statement

against individual client ledgers and your master ledger — every month,

without exception. This skill automates the tedious matching and flags

anything that doesn't line up.

What You Get

  • Bank statement parsing (CSV or PDF)
  • Automatic transaction matching to client ledger entries
  • Three-way reconciliation: bank vs. client ledgers vs. master ledger
  • Discrepancy flagging with explanations
  • Alert when any client balance goes negative (ethics violation)
  • Bar-compliant reconciliation reports in your jurisdiction's format
  • Uncleared check tracking

Setup Steps

  1. Export your bank statement as CSV or PDF
  2. Provide your client ledger data (spreadsheet or accounting export)
  3. Run the reconciliation
  4. Review flagged discrepancies
  5. Generate and save the compliance report

Tips

  • Run this monthly without exception — most bar rules require monthly reconciliation
  • A negative client balance is a trust violation even if it's a timing issue — fix it immediately
  • Keep every reconciliation report in a dedicated compliance folder
  • The uncleared check report helps you catch stale checks before they become a problem
Tags:#legal#trust-account#compliance#ethics#finance