STAK8 / IOLTA / TRUST ACCOUNTING

Three records.
One balance.
No room for drift.

Trust accounting is not a standard bank reconciliation. It is a control system: three independent records must agree, exceptions must be explained, and the review must leave a clear written trail.

The three-way trust accounting control

01Trust account journalChronological activity + running balance

02Individual client ledgersMatter-level receipts + disbursements

03Bank recordsStatements + cleared and outstanding items

3-WAYReconciliationAll three records must agree—to the penny, every month, without exception.

TRUST ACCOUNTING REQUIREMENTS

Reconcile the system—not just the bank.

For most firms, monthly three-way reconciliation is required for IOLTA client trust accounts, together with a written record of the process.

$0.00

Acceptable unexplained varianceThe three balances must match exactly. Over, under, and unexplained residual differences must be investigated and resolved.

Match all three recordsThree-way reconciliation of the journal, client ledgers, and bank activity.
Resolve every exceptionTrace uncleared items, timing differences, and posting errors.
No operating cushionFirm funds in trust are limited to amounts reasonably sufficient to cover bank charges.
Document the reviewBuild an evidence trail that supports supervision and response readiness.
Protect accountabilityTechnology and staff can support the process; responsible attorneys retain oversight.

California Rule 1.15

Requirements vary by jurisdiction. STAK8 provides financial and operational advisory services, not legal advice.

AI / SECURITY / CONFIDENTIALITYForward-looking tools.
Non-negotiable trust.

Confidentiality and trust go hand in hand. STAK8 is at the forefront of applying AI to financial work while protecting client data and confidentiality at every step.

Our approach to confidentiality

engagement_record.synSYNTHETIC DATA

Reconstruct the activity for Jordan MercerCLIENT-••81CLIENT under Matter 24-1187MATTER-••87MATTER.

Confirm the transfer from account 8724 4109 6621ACCOUNT-••21ACCOUNT posted on September 18, 2026DATE-09/18DATE.

Controls are tailored to the requirements relevant to each engagement:

HealthcareHIPAA-aligned safeguards Financial servicesGLBA Safeguards Rule Legal-sector workABA Model Rule 1.6(c)Security guidanceABA Cybersecurity Handbook

Experienced alongside counsel

STAK8 has extensive experience working with attorneys across a wide range of practice areas. When retained and directed by counsel to assist in providing legal advice, we structure our work to support applicable attorney-client privilege and work-product protections.

Privilege considerations

Frameworks are applied as relevant to each engagement. STAK8 provides financial and operational advisory services, not legal advice.

TRUST ACCOUNTING SUPPORT

Get the records
back under control.

Whether the need is routine reconciliation, reconstruction, process improvement, or audit response, the STAK8 team can help establish the facts and the next action.

Three records.One balance.No room for drift.

Get the recordsback under control.

Three records.
One balance.
No room for drift.

Get the records
back under control.