RapidPay - Reconciling Trust Bank Accounts

13/05/2022
Knowledge

How To

The process of reconciling your trust account involves matching the trust bank statement to transactions recorded in LEAP.

Once you have linked your trust bank account to RapidPay, this will let us automatically import trust account transactions into the LEAP trust reconciliation from your bank. LEAP will automatically reconcile all transactions saving you time.

If you haven't already verified your trust account with RapidPay, click here.

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The RapidPay automatic trust reconciliation feature is available on the Premium Subscription and integrates with most Australian banks.

Watch the video below for information on reconciling your LEAP Trust Bank Accounts using RapidPay.

Reconcile Your Trust Account

Click the LEAP Menu > Accounting > under Trust Accounting > Reconcile Account.

The Trust Bank Reconciliation window will open in your default browser.
Enter a Statement Date.
Enter a Statement Balance which will be the closing balance based on the statement date.
Filter transactions by Reconciliation Status:
- All
- Accepted
- Pending
Filter transactions by Transaction Type:
- All
- Payment
- Receipt
- Deposit
Using the trust bank statement, compare and match the transactions listed on the bank reconciliation.
1. LEAP will automatically match the LEAP transactions to the bank feed. Ensure that you review the automatically matched entries to ensure they are correct.
2. If a transaction is not automatically matched to a LEAP transaction, click to search the bank feed for the relevant transaction or click to manually reconcile the entry.

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Click and select to unmatch a LEAP transaction.

Tick Compact Mode to hide the Matter No. and Transaction Type columns.

Search for a transaction using the Search field and sort your transaction list by clicking the column heading, e.g. Matter No., Type, Trans. Date and etc.

Continue matching until you have marked off all items on the bank statement.
When the variance is nil, click on the Reconcile button to reconcile your trust account.

What If the Variance Is Not Nil?

You may have a variance due to the following inconsistencies between your bank statement and your trust account reconciliation:

Difference between the transaction amount recorded on the bank statement and in LEAP.
Trust transactions recorded on the bank statement were not recorded in LEAP.
Trust transactions recorded on the bank statement were entered in LEAP after the statement date (including bank deposit slips).

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As the trust account reconciliation only shows transactions based on the date of entry (as opposed to the transaction date), any back-dated transactions entered in LEAP after the statement date will need to be entered as an addition.

The addition can be removed once the back-dated transaction appears and can be matched in the trust account reconciliation.

Additions in the Trust Account Reconciliation

You can add items and adjust the calculated balance as a temporary measure to reconcile the trust account.

Click New Addition.
Enter a Date for the addition.
Enter a Reason for the addition.

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Enter a reason that you can identify easily and remove once the actual transaction appears in the trust account reconciliation.

Enter the amount under Withdrawal or Deposit.

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Click to remove the addition when no longer required and the actual transaction is matched.

Best Practice Tips

Click Save For Later to save a reconciliation before completion and return to it later to continue with reconciliation.
Never place an amount as an addition that isn’t directly related to an actual transaction on the bank statement to clear the variance.
For any unknown/unidentified deposits, do not post the transaction to a matter called ‘Unknown Deposits’ (or similar). Instead, you can add the transaction as an addition until the deposit is identified and then you can match the deposit or create it on the relevant matter that you can reconcile later.
Always review the transactions on the trust reconciliation to ensure that any outstanding entries are handled accordingly.
Always have a partner review your month-end final reconciliation and sign it off.
Where possible, print all trust cheques and receipts directly from LEAP. This will mitigate the possibility of mismatching errors due to hand-written transactions.

Last Modified Date

13/05/2022 11:49 am

Title

RapidPay - Reconciling Trust Bank Accounts

URL Name

Reconciling-Trust-Bank-Accounts-RapidPay

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