Worked scenario
Client account balanced once a month and hoped for in between
Client money carries obligations that do not pause between reconciliations, and a discrepancy found at month end may be four weeks old.
4 min read
Handling client money is among the most closely regulated aspects of practice, and the records are frequently maintained with the same tooling as ordinary bookkeeping.
Monthly is a long time
A misposting made on the second is discovered on the thirtieth, by which time subsequent transactions have been built on it and unwinding is genuinely difficult.
What the firm still owns
Your obligations regarding client funds are set by your regulator and your own compliance policy. A system can maintain per-matter ledgers and surface discrepancies early; it does not define what you must do.
What changes
- Client and office transactions separated at entry
- Ledger balances maintained per matter continuously
- Discrepancies surfaced when they arise, not at reconciliation
- A retrievable audit trail per matter
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