Law firm accounting
Three views of client funds—and why they matter
Advanced CPE · September 30, 2026 · 3 minute read
An introduction to the records behind a three-way reconciliation.
Client-fund records serve different purposes. A bank statement describes activity at the bank. A trust-account register describes recorded account activity. Individual client ledgers organize amounts by the clients or matters to which they relate.
Ask what each record explains
Comparing these views is a way to investigate whether the records tell a consistent story. A total alone does not explain who a balance belongs to, and a client list alone does not explain what has cleared the bank.
Investigate differences
Work with a consistent date and keep a written list of differences, relevant documents, and questions for review. The objective is an explainable result, not merely equal numbers. Do not insert an unsupported adjustment to make records match.
Know the limits of a general introduction
Required procedures, timing, record retention, and responsibilities depend on the rules governing the practice. Ask the responsible attorney to identify those requirements before adopting a workflow. This article is educational and does not establish a compliance procedure.
For jurisdiction-specific guidance, consult the State Bar of California’s client trust accounting resources if California rules apply, or the relevant authority for your practice.