Three-Way Trust Reconciliation

Q: Will the automation work with our existing accounting software and bank feeds?

Yes, the automation integrates with mainstream accounting platforms and bank data sources. Your implementation team will configure the specific connections during setup.

Q: How does the automation handle timing differences between bank and ledger entries?

The automation categorizes timing differences separately from other discrepancies and flags them for review, allowing your team to distinguish between true errors and expected timing gaps.

Q: What happens to our historical reconciliation data?

Your existing reconciliation records remain in your accounting system and spreadsheets. The automation works with current and future cycles without altering historical data.

Q: Can the automation post journal entries directly to our accounting system?

The automation can post approved adjustments automatically, but all entries are reviewed and approved by your team first to maintain control and audit compliance.

Matching bank balance vs trust ledger vs sum of individual client ledgers — the bar audit requirement.

372 hrs

Manual time identified

Companies have mapped

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About This Automation

Three-way trust reconciliation matches bank statements, general ledger entries, and client ledger balances to ensure trust account accuracy. Manual reconciliation is time-consuming, error-prone, and delays month-end close.

Automation compares all three data sources simultaneously, flags discrepancies by type, and suggests root causes. the team reviews exceptions and approves adjustments in a fraction of the time.

Key features:

Match bank transactions to ledger entries and client balances automatically

Categorize discrepancies by type and flag severity for prioritized review

Suggest likely root causes such as timing differences or rounding errors

Generate a reconciliation summary ready for managing partner approval

Post approved adjustments to your accounting system without manual entry

Data insights How it works Apps used What you get FAQ

Top friction points when done manually

The issues teams report most often with this process

#	Friction point	Companies Report This
1	Manual data compilation Extracting client ledger data from multiple systems and spreadsheets consumes 20 minutes per cycle.	80%
2	Spreadsheet matching Building and updating the three-column reconciliation sheet in Excel is error-prone and time-intensive.	67%
3	Discrepancy investigation Tracing unmatched items back to source documents requires manual review of multiple systems.	53%
4	Delayed month-end close Reconciliation bottlenecks prevent timely financial close and reporting.	40%
5	Approval communication Email-based review and sign-off creates gaps in documentation and audit trail.	26%

Disclaimer

Automation readiness

How well-suited this process is for automation

Process Pain Score™

8.7/ 10

AI Fit Rating™

9.1/ 10

Automation Lift Index™

8.8/ 10

Hidden Overhead™

7.3/ 10

How The Automation Works

The full workflow, from trigger to completion.

1. Month-End Reconciliation Triggeredtrigger

On the last business day of each month, the automation checks for a new bank statement and initiates the three-way reconciliation process.

2. Fetch Bank Statement Data

The automation retrieves the bank statement from the trust account and extracts all transactions with dates and amounts.

3. Pull General Ledger Entries

Is queried for all trust account entries for the month, matched by date and amount.

4. Extract Client Ledger Balances

Client trust ledger data is pulled from the source system and aggregated by client matter code.

5. AI Reconciliation Matches Data

The automation compares all three data sources, flags unmatched items, and categorizes discrepancies by type (timing, rounding, missing entry).

6. Send Reconciliation Report

A summary report with matched items, discrepancies, and recommended actions is posted for the finance team.

Most popular tool stack used

— the complete tool combinations companies use

52% of companies

28% of companies

15% of companies

Disclaimer

What you get when you map this process

Everything you need to understand, plan, and build your automation.

ROI and business case

What this process costs today and what changes once it's automated.

Launch schedule

What gets built, in what order, and what success looks like once it's live.

Process runbook

How the automation runs day to day, including exceptions and human decision points.

Developer handover pack

Full build spec, logic, and configuration — ready to hand off without a briefing call.

Integration and connections guide

Every tool connection, credential, and data mapping the build needs.

Test and QA plan

508 hrsIdentified

4Mapped

View

Frequently asked questions

Everything you need to know before mapping this process.

What happens to discrepancies that the automation cannot resolve automatically?

The automation flags unresolved discrepancies with context and suggested causes, then routes them to your bookkeeper or managing partner for manual investigation and approval before posting adjustments.

Will the automation work with our existing accounting software and bank feeds?

How does the automation handle timing differences between bank and ledger entries?

What happens to our historical reconciliation data?

Can the automation post journal entries directly to our accounting system?

View more FAQs

Process pain:8.7/10

Mapped by:12 Companies

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Page updated 10 August 2026