Capital & Money
Trust & Reconciliation
Borrower money in, lender money out. Reconcile the bank to the books every month and move earned fees to operating.
Trust account
[Bank] ••••4417 · Borrower payments in, lender distributions out
Bank balance (Sep 25 statement)
$186,420.55
Book balance (system)
$184,597.09
Difference
$1,823.46
Last reconciled: Aug 31, 2026 · signed off by Alex Morgan (Owner / Admin) on Sep 8
Operating account
[Bank] ••••2290 · Company fees, spread, expenses
Bank balance (Sep 25)
$48,912.30
Book balance (GL)
$47,256.12
Difference
$1,656.18
Pending in from trust: $22,717.14 (September earned spread & fees, awaiting approval). Operating accounts are reconciled on Accounting → Operating bank.
Every money event writes a trust transaction automatically (commitment fee, lender funds, advance to the lawyer, borrower payment / NSF / PAD settlement, payout and principal returned to lenders, reserves & holdbacks, distribution runs, transfers, broker fees paid from trust). Each one also posts to the general ledger (trust bank 1010 against trust liabilities 2100–2240). Trust-account rules come from the customer's licence obligations — wording marked Compliance / accountant to confirm needs sign-off.
to
Imported Sep 25 statement.csv
42 bank lines · 39 auto-matched
42 bank lines · 39 auto-matched
Auto-matched
39
Suggested matches
2
Unmatched
1
Unreconciled difference
$1,823.46
Bank lines vs. system transactions
| Bank date | Bank description | Amount | Matched system transaction | Status | ||
|---|---|---|---|---|---|---|
| Sep 1 | DEPOSIT CHQ 000412 | +$1,848.46 | → | Suggested: #1143 Northgate Holdings Inc. Sep 1 post-dated cheque #000412 · $1,848.46 · not yet marked received | Suggested · 98% | |
| Sep 5 | PAD RETURN NSF — NGUYEN J | −$3,146.50 | → | Suggested: NSF reversal #1187 J. & R. Nguyen Recorded Sep 5 by Daniel Brooks · NSF fee $250 charged to borrower | Suggested · 100% | |
| Sep 25 | SERVICE CHARGE — ACCOUNT FEE | −$25.00 | → | No matching transaction Bank fees on a trust account should be paid from operating. Record and reimburse. | Unmatched | |
| Sep 1 | PAD SETTLEMENT BATCH 0901 | +$58,406.83 | → | PAD batch Sep 1 · 17 payments | Auto-matched | |
| Sep 2 | DEPOSIT CHQ 001187 | +$2,580.75 | → | #1098 K. Singh · Sep 1 cheque | Auto-matched | |
| Sep 3 | PAD SETTLEMENT BATCH 0903 | +$21,544.20 | → | PAD batch Sep 3 · 9 payments (incl. #1187 $3,146.50) | Auto-matched | |
| Sep 7 | DEPOSIT CHQ 000233 | +$10,677.08 | → | #1219 Harbour Lane Developments Ltd. · Sep 7 cheque | Auto-matched | |
| Sep 12 | WIRE IN — WHITFIELD LAW PC | +$7,500.00 | → | Lender fee withheld at funding · #1224 | Auto-matched | |
| Sep 15 | EFT OUT — BATCH 0915 (13 PAYEES) | −$121,406.20 | → | September lender distribution run · EFT portion | Auto-matched | |
| Sep 15 | TRANSFER TO ••••2290 | −$18,240.00 | → | Transfer TR-0917 · August earned spread & fees | Auto-matched | |
| Sep 20 | BALANCE FORWARD — MEMO LINE | $0.00 | → | Ignored by Daniel Brooks — informational line, no money moved | Ignored |
Showing 10 of 42 bank lines · 32 more auto-matched lines hidden
When all lines are matched
Book balance will equal the bank balance ($186,420.55). You can then complete the reconciliation and send it for sign-off.
What the trust balance is made of
Book balance before September reconciliation items| Held for | Detail | Amount |
|---|---|---|
| Lenders: distributions payable | For the Oct 15 run (14 lenders) | $125,840.00 |
| Company: earned spread & fees | September · awaiting transfer to operating | $22,717.14 |
| Borrowers: property-tax reserves | 31 loans | $11,039.95 |
| Borrowers: holdbacks | #1219 renovation holdback | $25,000.00 |
| Total client sub-ledgers = book balance | $184,597.09 | |
#1187's Sep 3 payment was returned NSF, so no money came in. The $2,516.67 of October distributions to its lenders is on hold. That is an unpaid amount, not a trust balance, so it isn't in this table.
Lender sub-ledgers
Payable Oct 15Dunmore Capital Corp.
$47,600.00
Maplewood Family Trust
$23,512.50
Northshore Holdings Inc.
$12,913.34
S. & L. Grewal
$10,651.67
R. Bhatia
$2,104.17
9 other lenders
$29,058.32Total
$125,840.00Loan sub-ledger
| Date | Transaction | Reference | Receipts | Disbursements | Balance |
|---|---|---|---|---|---|
| Aug 3 | Property-tax reserve deposited at funding | Whitfield Law PC · funding | $1,460.00 | $1,460.00 | |
| Aug 3 | Interest payment · PAD | PAD batch 0803 | $3,146.50 | $4,606.50 | |
| Sep 3 | Interest payment · PAD | PAD batch 0903 | $3,146.50 | $7,753.00 | |
| Sep 5 | PAD returned NSF | Bank return R01 | $3,146.50 | $4,606.50 | |
| Sep 15 | Distribution · R. Bhatia (August, full interest) | EFT batch 0915 | $1,666.67 | $2,939.83 | |
| Sep 15 | Distribution · Northshore Holdings Inc. (August, 75% paid) | Cheque 3318 | $850.00 | $2,089.83 | |
| Sep 15 | Transfer to operating · spread & servicing fee (August) | TR-0917 | $346.50 | $1,743.33 | |
| Balance held for #1187: tax reserve $1,460.00 + Northshore accrued interest $283.33 | $1,743.33 | ||||
Trust ledger
September 2026
| Date | Transaction | Loan / lender | Sub-ledger | Reference | Receipts | Disbursements | Balance | Bank | |
|---|---|---|---|---|---|---|---|---|---|
| Sep 1 | Opening balance | — | — | Carried in from August | $171,208.66 | ||||
| Sep 1 | PAD settlement · 17 payments | 17 loans | Lender payable / company earned | PAD batch 0901 | $58,406.83 | $229,615.49 | Reconciled | ||
| Sep 3 | PAD settlement · 9 payments | 9 loans incl. #1187 | Lender payable / company earned | PAD batch 0903 | $21,544.20 | $251,159.69 | Reconciled | ||
| Sep 5 | NSF return | #1187 J. & R. Nguyen | Lender payable | Bank return R01 | $3,146.50 | $248,013.19 | Matched | ||
| Sep 12 | Lender fee withheld at funding | #1224 | Company earned | Whitfield Law PC wire | $7,500.00 | $255,513.19 | Reconciled | ||
| Sep 15 | Distribution run DR-2026-09 | 13 lenders | Lender payable | EFT batch 0915 · cheques 3316–3318 | $121,406.20 | $134,106.99 | Reconciled | System row | |
| Sep 15 | Transfer to operating TR-0917 | — | Company earned | TR-0917 | $18,240.00 | $115,866.99 | Reconciled | System row | |
| + 24 more transactions this month · closing book balance $184,597.09 | |||||||||
Reverse posts a reversing transaction with a reason — nothing is edited or deleted. Distribution runs and transfers are corrected through their own screens.Opening balance entered at go-live shows as "Opening balance · Carried in on Mar 1, 2026".
Pending approval · TR-1015 · $22,717.14 trust → operating
September earned spread $15,217.14 + lender fee #1224 $7,500.00 · requested by Daniel Brooks, Sep 26
Transfer history
| Ref | Date | From → To | What for | Amount | Requested / approved | Status |
|---|---|---|---|---|---|---|
| TR-1015 | Sep 26 | Trust → Operating | September spread & fees | $22,717.14 | Daniel Brooks / — | Awaiting approval |
| TR-1002 | Sep 22 | Trust → Operating | Discharge fee #1077 | $395.00 | Daniel Brooks / Alex Morgan | Approved |
| TR-0990 | Sep 18 | Trust → Operating | Renewal fee #1061 (not yet collected) | $500.00 | Priya Nair / Alex Morgan | Rejected |
| TR-0917 | Sep 15 | Trust → Operating | August spread & fees | $18,240.00 | Daniel Brooks / Alex Morgan | Completed |
| TR-0816 | Aug 15 | Trust → Operating | July spread & fees | $17,905.22 | Daniel Brooks / Alex Morgan | Completed |
| TR-0715 | Jul 15 | Trust → Operating | June spread & fees | $16,880.40 | Daniel Brooks / Alex Morgan | Completed |
Only money the company has earned and collected can leave trust: spread, servicing fees, lender fees, NSF/discharge/renewal fees. The system works out the maximum and blocks transfers above it. A different person must approve. After the bank transfer is made, click Mark sent — the transfer is then written to the trust ledger. Broker fees and holdback releases paid out of trust are approved on the loan page (Held in trust).
September 2026
Trust accounts only. Operating accounts are reconciled on Accounting → Operating bank.
September 2026 · three-way reconciliation
In progress1. Bank balance (Sep 25 statement)
$186,420.55
Adjusted for outstanding items: none
=
2. Book balance (after 2 items recorded)
$186,420.55
$184,597.09 + $1,848.46 − $25.00
=
3. Total of client sub-ledgers
$186,420.55
Lenders · borrowers · company earned
Reconciling items
| Reconciling item | Side | Explanation | Amount | |
|---|---|---|---|---|
| #1143 post-dated cheque #000412 not yet recorded | Book (to record) | Deposited Sep 1; marked received after matching | $1,848.46 | |
| Trust account service fee | Book (to record) | To be reimbursed from operating | −$25.00 |
All three must agree before sign-off. Clear the first, or complete with them as reconciling items.
Reconciliation history
| Month | Account | Bank | Book | Sub-ledgers | Prepared by | Signed off | Status | |
|---|---|---|---|---|---|---|---|---|
| Sep 2026 | Trust ••4417 | $186,420.55 | $184,597.09 | $184,597.09 | Daniel Brooks | — | In progress | |
| Aug 2026 | Trust ••4417 | $171,208.66 | $171,208.66 | $171,208.66 | Daniel Brooks | Alex Morgan · Sep 8 | Signed off | |
| Jul 2026 | Trust ••4417 | $164,955.10 | $164,955.10 | $164,955.10 | Daniel Brooks | Alex Morgan · Aug 7 | Signed off | |
| Jun 2026 | Trust ••4417 | $158,302.47 | $158,302.47 | $158,302.47 | Daniel Brooks | Alex Morgan · Jul 9 | Signed off |
The accounting export can wait until a month is signed off, and the period-close checklist expects it signed off.Period close →
The app keeps the books in its own general ledger from the GL start date (Oct 1, 2026). For months before it, this tab builds one summary journal per month from the trust and operating transactions. For months from October on, the export comes from the general ledger (card on the right). Your accountant imports either into QuickBooks or Xero.
Journal summary · September 2026
| Account | Description | Debit | Credit |
|---|---|---|---|
| 1010 Trust bank | Borrower payments received | $141,057.14 | |
| 2100 Lender distributions payable | Owed to lenders (Oct 15 run) | $125,840.00 | |
| 4010 Interest spread & servicing income | Company share of borrower interest | $15,217.14 | |
| 1210 Borrower receivables | NSF fee charged · #1187 | $250.00 | |
| 4030 NSF fee income | NSF fee · #1187 | $250.00 | |
| 1010 Trust bank | Lender fee withheld at funding · #1224 | $7,500.00 | |
| 4020 Lender fee income | Lender fee · #1224 | $7,500.00 | |
| 5010 Bank charges | Trust account service fee | $25.00 | |
| 1010 Trust bank | Trust account service fee | $25.00 | |
| Totals (balanced) | $148,832.14 | $148,832.14 | |
MS-JNL-2026-09 · journal date Sep 30, 2026 · not exported yet
Export history
| Reference | Period | Journal date | Lines | Total | Status | Exported |
|---|---|---|---|---|---|---|
| MS-JNL-2026-09 | September 2026 | Sep 30, 2026 | 9 | $148,832.14 | Draft | — |
| MS-JNL-2026-08 | August 2026 | Aug 31, 2026 | 11 | $139,406.88 | Exported | Sep 9 · Daniel Brooks |
| MS-JNL-2026-07 | July 2026 | Jul 31, 2026 | 10 | $131,775.02 | Exported | Aug 8 · Daniel Brooks |
Connection
CSV export- System
- CSV file (import into QuickBooks / Xero)
- Company file
- [Lender Name] Ltd.
- Last sync
- —
- Method
- One summary journal per month
- Guard
- Only after the month is signed off
September's trust reconciliation is not signed off yet — the export waits for it.
What gets exported Accountant to confirm
Monthly summary entries from the trust and operating transactions: borrower receipts, lender payables, fee and spread income, bank charges. Once the general ledger has a start date (Settings → Accounting), the export comes from the GL instead.
Export from the general ledger
CSV of the GL journals for a month or a range of months, laid out for import. The same sign-off guard applies to every month. Year-end close journals are left out — the accounting system closes its own year.
Chart-of-accounts numbers and the summary-vs-detail choice are examples. Accountant to confirm the mapping.
Import bank statement
Download the statement from online banking (CSV or OFX/QFX) and drop it here. Lines are matched to system transactions automatically.
Match to another transaction
Bank line: Sep 1 · DEPOSIT CHQ 000412 · +$1,848.46
Create transaction
From bank line: Sep 25 · SERVICE CHARGE · −$25.00
Complete September reconciliation
Trust ••••4417 · Sep 1 – Sep 25, 2026
Sign off reconciliation
September 2026 · Trust ••••4417
Transfer earned funds to operating
Moves money the company has earned out of trust. A second person must approve before the bank transfer is released.
Approve transfer TR-1015
Requested by Daniel Brooks · Sep 26, 2026
Sync September journal
Posts one balanced summary journal to your accounting system.
Reverse trust transaction
A reversing transaction is posted; nothing is edited or deleted.
Add reconciling item
Outstanding cheques, deposits in transit or bank-side items.