Three balances to compare
The calculator produces a calculated book ending balance, an adjusted bank balance and the entered total of client or matter ledgers. A properly entered set of records should ordinarily reconcile mathematically, but the calculator cannot determine whether a transaction was permitted or recorded in the correct client matter.
How outstanding items affect the bank side
Deposits in transit are added to the bank statement balance because they are already on the books but not yet reflected by the bank. Outstanding checks are subtracted because they have reduced the books but have not yet cleared the bank.
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Frequently asked questions
What does the Trust and Escrow Reconciliation Calculator compare?
It calculates an expected book ending balance, adjusts the bank statement balance for deposits in transit, outstanding checks and other entered bank adjustments, and compares both amounts with the total client or matter ledger balances you enter.
What is an adjusted bank balance?
For this calculator, adjusted bank balance equals the ending bank statement balance plus deposits in transit, minus outstanding checks, plus or minus any other bank-side adjustment you enter.
What is the book balance?
The calculated book balance begins with the opening book balance, adds deposits and interest or credits, and subtracts disbursements and bank or transaction fees.
Why compare client or matter ledgers with the book balance?
In a pooled trust or escrow account, the total of individual client or matter ledger balances is commonly reconciled with the account-level books as a separate control. A difference indicates that the entered totals do not agree mathematically.
Does this calculator satisfy trust-accounting rules?
No. Trust and escrow accounting obligations vary by account type, governing authority and jurisdiction. This calculator is a general arithmetic reconciliation aid and does not determine required records, reconciliation frequency, permitted transactions or compliance.