Skip to content
  • There are no suggestions because the search field is empty.

Trust Reports in LeanLaw

How to use LeanLaw's trust reports — including the Trust Account report, three-way reconciliation, client statements, and what data each report shows for IOLTA compliance.

LeanLaw provides several reports specifically for trust accounting — from checking individual client balances to generating the data needed for monthly three-way reconciliation. This article covers the trust-specific reports and how to use them.

 

Trust Account Report

The Trust Account report is the primary report for monitoring trust balances across all clients. Access it from:

  • Reports → Trust Report: The dedicated trust report in the Reports section.
  • Trust Account hub → individual client → Go to Transaction Report: A client-specific version scoped to one client's history.

 

Key data in the Trust Account report:

Column What It Shows
ID The matter ID number.
Client / Matter The client (bold) with associated matters listed below it.
Responsible The timekeeper initials responsible for the matter.
Trust Account The trust account the funds are held in.
Evergreen Amount The minimum trust balance required for this matter, if configured. Blank if no evergreen minimum is set.
Trust Balance The current balance held in trust for this matter.
Ready to Bill (WIP) Billable time and expenses staged against this matter but not yet invoiced. Useful for comparing against the trust balance before billing.
Trust / WIP The percentage of WIP covered by the current trust balance. Shows "-" if no WIP exists.
Account Balance The overall account balance, which may reflect write-downs or adjustments.
Replenishment The amount needed to bring the trust balance back up to the evergreen minimum, if applicable.
Total Due The total outstanding amount due for the matter.

 

💡 Pre-billing tip: Run the Trust Report before each billing cycle. Compare Trust Balance to Ready to Bill (WIP) — if trust funds cover the upcoming invoice, apply trust directly to the invoice rather than sending a standard bill. Use the Below Evergreen filter in the left panel to quickly identify clients who need a replenishment request.

 

Trust Ledger (Per-Client)

The trust ledger for a specific client shows all transactions in their trust account — deposits, payments applied to invoices, disbursements, and returned funds — in chronological order. Access it from the client's trust account view (click the client in the Trust Account hub, then click the Report button or Ledger tab).

The trust ledger is the document provided to clients when they request an accounting of their trust funds, and is essential documentation for state bar trust account audits.

 

Three-Way Trust Reconciliation

Trust accounting regulations typically require a monthly three-way reconciliation — comparing your bank statement, trust ledger, and client ledger to confirm they all agree. This is done primarily in QuickBooks, with LeanLaw's trust data as one of the three components.

The three components:

  • Bank statement: Your actual IOLTA account balance from your bank.
  • Trust ledger (book balance): The total trust balance as tracked in QuickBooks Online — the sum of all deposits and disbursements in your trust bank account.
  • Client ledger: The total of all individual client trust balances — the sum of all 'Funds Held in Trust' liability sub-accounts.

 

All three totals must agree. If they don't, work through the discrepancies systematically:

  1. Compare bank statement to trust ledger: Look for deposits or withdrawals that occurred after the statement closing date, or bank fees incorrectly charged to the trust account.
  2. Compare bank statement to client ledger: Look for pending transactions — checks received but not yet deposited, or electronic payments in process.
  3. Correct any discrepancies and recheck. Reconcile on the same day each month to align with your bank statement cycle.

⚠️ Regulatory requirement: Your state bar association will have specific requirements for trust reconciliation frequency and documentation. LeanLaw recommends monthly reconciliation as a minimum. Consult your state bar's guidelines for your jurisdiction's specific requirements.

 

Client Statements

For clients with ongoing trust activity, you can generate and send a client statement from QuickBooks Online that shows their trust balance history alongside billing activity:

  1. In QuickBooks, go to the Sales menu → Clients tab.
  2. Check the checkbox next to the client(s) for whom you want to create a statement.
  3. In the Batch actions dropdown, select Create statement.
  4. Choose the statement type: Balance Forward, Open Item, or Transaction Statement.
  5. Preview, save, or send the statement directly to the client.

📋 Statement types: Balance Forward shows invoices and payments with outstanding balances for a date range. Open Item lists all unpaid items. Transaction Statement shows all transactions in chronological order — the most useful for trust account transparency.