Law Business Essentials

A law firm must reconcile its general accounts no later than the end of the following month (Rules of the Law Society of Alberta, Rule 119.36(1)).  

The reconciliation of each general account must include (Rule 119.36(2)):

• A summary, that shows a comparison between:
• the total of the bank balance of each general account of the law firm, as recorded by the approved depository;
• the total of the bank balance noted in each general account journal of the law firm; and
• any identified unreconciled differences, together with the reasons for and steps taken to correct any differences once identified.
• A detailed report for each general account that includes a listing of:
• all cleared cheques;
• all cleared deposits;
• all uncleared cheques, including outstanding cheques itemized by date, cheque number, payee and amount;
• all uncleared deposits, including deposits in transit;
• all adjustments and errors, including their description; and
• any other items necessary for the reconciliation, including all details and explanations for each item. 
• A chronological general account journal for each general account showing:
• All receipts of money including:
• the date on which the money is received;
• the source of the money;
• the form in which the money is received;
• the amount of money received;
• the receipt number; and
• the client name and file number (if applicable). 
• All withdrawals and transfers of money including:
  
• The date on which the money is withdrawn or transferred;
• The name of the recipient of the withdrawal or transfer;
• The payee of any payment associated with the withdrawal;
• The amount of the withdrawal or transfer;
• The cheque or transfer number; and
• The client name and file number, if applicable.
• The running balance of the total amount in the general account.
• A bank statement for each general account. 
• The original printed copy or digital image of all negotiated cheques. 
• Evidence of the review and oversight of the monthly reconciliation records, including the dates on which the reconciliation was prepared and reviewed.