Find negative client balances in your trust account
A client ledger below zero means another client's money was spent. Tiesheet totals every client ledger and shows any that are negative now or dipped below zero during the month.
Why it matters
When you pay out more for a client than you hold for them, the difference comes from other clients' money. The bank balance can look fine and the bank reconciliation can still balance. Only the client ledgers show it — which is why rules like North Carolina's Rule 1.15-3(d) look at the total of positive client balances, not the net.
What Tiesheet checks
- Negative now: any client or matter whose ledger ends below zero (shown as a problem).
- Dipped mid-month: a client that went below zero on some day and recovered later — for example a check written before the deposit it depended on was recorded.
- Unassigned entries: ledger lines with no client, which can hide a shortfall.
Read what to do about a negative client ledger balance.
Files it reads
Any bank's CSV or Excel export (date, description, amount or deposit/withdrawal columns, optional running balance and check number), and a trust ledger or journal exported from QuickBooks, Excel, your practice-management or property-management software — one row per receipt or disbursement, with a client (or owner, tenant, matter) column. QuickBooks-style reports grouped under a client heading work too. Download the templates to see the layout.
Nothing is uploaded
Trust account data is about as confidential as it gets. Tiesheet reads your bank export and ledger with JavaScript in your browser tab; nothing is sent to a server, there's no account, and nothing about your transactions is saved — close the tab and it's gone. (Pro can keep this month's outstanding items in this browser so next month picks them up; you choose.)
How it works
- Drop the bank statement export and the trust ledger (CSV or Excel). Optionally add your software's client balance report.
- Check the period and ending balance — read from the statement when it has a balance column.
- See whether it ties: outstanding items, bank items missing from the ledger, every client's balance and the checks that failed. Print it, or with Pro download the Excel workbook.
FAQ
What is a three-way reconciliation?
It shows that three balances agree on the same date: the bank statement balance adjusted for outstanding checks and deposits in transit, the trust account ledger (checkbook) balance, and the total of all individual client ledger balances. Lawyers with client trust (IOLTA) accounts and real estate brokers holding escrow funds are generally required to do it regularly; how often depends on your state.
Is my data uploaded?
No. Your files are read by JavaScript in your browser tab and never sent to us or anyone else. Transactions aren't stored at all. With Pro you can choose to keep this month's outstanding items in this browser for next month.
Which files can I use?
CSV, tab-separated or Excel exports. The bank file needs a date and an amount (or deposit and withdrawal columns); a check number and running balance help. The ledger needs a date, an amount and a client, matter, owner or tenant column on each line. QuickBooks-style reports grouped under client headings work. Download the templates to see the layout.
What's free?
Matching, the three-way summary, outstanding items and every check, for any number of transactions. The printed report and CSV list up to 10 client ledgers with a small footer. Pro lists every client ledger and adds the Excel workbook, ledger cards and month-to-month carry-forward.
Does it replace my trust accounting software?
No. Tiesheet reconciles the records you already keep; it doesn't record transactions, write checks or connect to your bank. It also doesn't know your state's rules — check them, and have the report reviewed by the responsible lawyer or broker.
Why doesn't the bank balance agree with my ledger?
Usually bank fees or interest that were never recorded, a deposit or check recorded for the wrong amount, or an item outstanding from last month. Tiesheet lists bank transactions missing from the ledger and says when they explain the whole difference.