Summary
Learn how to complete a Trust Account reconciliation, verify balances, and generate reports to confirm all transactions are accounted for in your trust account, including preparing the End of Month (EOM) reconciliation, sometimes referred to as the EOM Trial Balance.
This article covers:
About End of Month (EOM) Reconciliation
An End of Month (EOM) reconciliation is performed to confirm that all trust account transactions have been accurately recorded and that your trust ledger balances match your bank records at the end of the month. Completing the reconciliation helps identify any discrepancies, ensures compliance with trust accounting requirements, and provides an auditable record of all trust account activity.
You may also hear this process referred to as an EOM Trial Balance. While the terminology can vary between agencies, both terms are commonly used to describe the review and balancing of trust account records at month end.
Reconcile your trust account
Reconciliation ensures your Trust Account records match your bank statement. Follow these steps to complete a successful reconciliation and generate your report.
To reconcile your trust account:
- Go to: Accounting > Trust
- Click Reconciliation
- Click the Calendar icon
- Select the date that matches your bank statement
- Enter the Closing Balance amount from your bank statement
You’ll see a Difference box showing the variance between Your last reconciliation’s closing balance, which should also match your current statement’s opening balance, and the closing balance you’ve just entered.
- A red box means the reconciliation is not balanced
- A green box means the reconciliation is balanced (difference = $0)
- Scroll to the Cashbook/System Balance section
- Tick each transaction that matches your bank statement
- Click Mark # Transactions as Presented
- Click Reconcile
You will be prompted to choose a report template. Click Close if you do not wish to print or save a copy at this time.
- Select a report template
A Reconciliation Report will be generated and displayed. A copy of the report is automatically saved under Archives.
Troubleshoot imbalances
If your reconciliation doesn’t balance:
- Go to: Accounting > Trust > Reconciliation
- Click Archives
- Print the last successful reconciliation
- Untick items added after that point to return to the last balanced state
- Re-enter the Closing Date and Closing Balance
- Re-tick transactions matched against the bank statement until the Difference is $0
If you still can’t balance, it’s likely that one or more transactions were entered incorrectly (or missed) in the ledgers.