This post outlines the three-way IOLTA reconciliation process within ProLaw®.
Key Considerations
- Bank Statement Balance vs. ProLaw® Bank Balance: These two figures should always be identical. Discrepancies indicate potential errors in bank statement entry or reconciliation within ProLaw®.
- ProLaw® Bank Balance vs. ProLaw® Books Balance: These balances often differ due to un-cleared items within ProLaw®. The bank remains unaware of entries not yet cleared, despite their posting to the ProLaw® Journals.
- Journals Balance vs. Matter Trust Balance Report: Discrepancies frequently arise due to items on hold within the ProLaw® Journals. The Matter Trust Balance Report accurately reflects available funds (excluding items on hold), ensuring adherence to ethical obligations and preventing overspending. Importantly, entries on hold do not automatically reduce the Journals trust balance.