Bank Reconciliation in Florida Legal Practice
Bank reconciliation is the process of verifying that bank records match internal accounting records. In Florida legal practice, monthly trust account reconciliation is a mandatory ethical obligation under Florida Bar Rule 5-1.1.
Three-Way Reconciliation
Florida attorneys must perform monthly three-way reconciliations of their trust accounts: the bank statement balance must match the trust account ledger balance, which must match the sum of all individual client ledger balances. Discrepancies must be identified and resolved immediately. This process protects client funds and ensures accurate accounting.
Compliance Requirements
The Florida Bar's trust account compliance program conducts random audits of attorney trust accounts. Attorneys must maintain reconciliation records for at least six years. Failure to reconcile, unexplained discrepancies, and commingling of funds are among the most common grounds for attorney discipline in Florida.
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Barnes Walker
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Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC