Why do I need to do a three-way reconciliation of each trust account?

If you practice in Canada, then you are required to perform a three-way reconciliation of individual and pooled trust accounts on a monthly basis.^[1]

In the United States, as of May 2019, 26 states (AL, AZ, IL, IA, MA, MO, NJ, SC, CA, CT, FL, HI, LA, MD, MS, MT, NH, NM, NC, OH, PA, TN, VT, WA, WI, WY) require attorneys to perform three-way reconciliations for client trust accounts. The states vary as to the timing, with some states requiring the three-way reconciliation monthly, and other states requiring it on a quarterly basis only. You should check your state and local rules of professional conduct to see if they require your firm to perform three-way reconciliations for client trust accounts, and if so, how frequently.

References

1. Trust Accounting