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Trust Account Reconciliation Automation

Every dollar in your trust account must be tracked, receipted, and reconciled. Most firms do this manually in Xero or MYOB — line by line, matter by matter. I build automations that reconcile trust transactions in real-time and produce audit-ready reports instantly.

3 daysMonthly rec time
2 hoursAfter automation
$36kAnnual admin waste

What gets automated in trust account reconciliation

Trust account compliance in NSW is governed by the Legal Profession Uniform Law and the Real Property Act. Every transaction must be traceable. Here's what an automated reconciliation workflow looks like:

Real-time receipting

Every deposit to the trust account is automatically receipted in Xero with the correct matter code, client reference, and transaction type. No manual bank feed matching.

Auto-matching

Trust transactions are matched against PEXA settlement schedules, matter management records, and client instructions automatically. Discrepancies flagged for review.

Three-way reconciliation

Bank balance, trust ledger, and matter cards reconciled automatically. The system identifies any unmatched transactions and surfaces them for action.

Audit report generation

One-click audit reports formatted for Law Society NSW requirements: trust money statements, reconciliation statements, and matter-by-matter breakdowns.

Compliance alerts

Automated alerts for overdue reconciliations, unusual transactions, or trust account breaches. Never miss an audit deadline again.

Settlement sync

When PEXA settlement completes, trust funds are automatically released, receipted, and reconciled. No post-settlement manual entries.

Frequently asked questions

What is trust account reconciliation?

Trust account reconciliation is the process of matching every dollar in your trust account to a specific client matter. In NSW, law firms and conveyancers must reconcile trust accounts monthly and produce audit-ready reports for the Law Society. Most firms do this manually — matching bank feeds line by line against matter ledgers.

How does automation improve trust account compliance?

Automation eliminates manual receipting and matching errors. Every transaction is coded to the correct matter automatically. Three-way reconciliation (bank, ledger, matter cards) runs in real-time instead of monthly. Audit reports generate on demand. This reduces compliance risk and saves 2-3 days per month.

Is automated trust reconciliation compliant with NSW regulations?

Yes. The automation handles the mechanical matching and reporting. It does not bypass any regulatory requirement. All transactions still flow through Xero or MYOB using the same trust accounting standards. The system produces reports in Law Society NSW format.

How much time does trust reconciliation automation save?

Most firms spend 2-3 days per month on manual trust reconciliation. Automation compresses this to under 2 hours — primarily review of flagged exceptions. At a typical firm rate, that's $36,000+ per year in recovered billable time.

What happens if there's a discrepancy?

The automation flags any unmatched or unusual transaction for manual review. It never silently reconciles a discrepancy. Your team reviews flagged items and resolves them — the system handles the 95% of transactions that match cleanly.

Stop spending 3 days a month on trust rec

Automated trust reconciliation saves $36,000+ per year and eliminates audit anxiety. Book your free Systems Review.

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