Trust account violations rarely start with one big mistake. They start with small oversights that compound.
This Trust Account Red Flags Checklist covers six categories of warning signs — bank-level discrepancies, client ledger irregularities, billing and retainer patterns, authorization gaps, dormant funds, and software failures — so you can catch problems before they become bar complaints.
You can't fix what you don't catch.
This checklist helps you spot trust account problems before they become violations.
SOUND FAMILIAR?
Trust account issues rarely start with a dramatic mistake. They start with a pattern — a retainer transferred without an invoice, a reconciliation that's a little late, one client ledger that nobody looks at closely. By the time the problem is visible, it's already a compliance issue. And as the bookkeeper, you're in the middle of it.
Why You'll Love This Checklist:
✔ Helps you proactively scan for warning signs across every layer of the trust account — from the bank statement to the software settings to the authorization process
✔ Use it alongside your reconciliation, before any audit or year-end close, and any time something feels off.
WHAT'S INSIDE:
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Bank-level red flags
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Client ledger red flags
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Reconciliation and recordkeeping red flags
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Billing and retainer red flags
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Authorization and oversight red flags
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Dormant account and escheatment red flags
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Software and process red flags
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An action framework — so every identified issue gets resolved
