Why Bank Reconciliation using automatic bank feeds
To stay compliant with the legislative requirements when managing clients funds, Accounting firms are required to reconcile the trust bank account. For eg, client funds must be used for the purpose they were collected and to identify unknown credits in the account.
The Best practice would require bank reconciliation to occur on a monthly basis so that mitigation actions are taken on time. Based on our research, it becomes very difficult and time consuming to perform this task of bank reconciliation if it’s not incorporated in the trust software and bank feeds are not coming into the trust software automatically. Usually, accounting firms give access to online banking credentials and spreadsheets to senior staff members to manually check and reconcile the bank account which is neither safe nor efficient.
At TrustEasy, we incorporated automatic bank feeds in the Trust Accounting Software along with a standard chart of accounts where they can allocate it to the right sets of accounts or add more and stay compliant.
TrusEasy also incorporates an “audit trail” on bank transactions and provides a user to send “items for review” whenever necessary. It has the ability to export reconciled transactions in statutory financial reporting software like “HandiLedger” with step by step instructions provided and that’s why it’s easy!
