Understanding Actionstep's Update to the Queensland Trust Reconciliation Process

Modified on Thu, 27 Jun at 10:18 AM

On May 10th, 2024, Actionstep implemented an important update to our QLD trust accounting plugin to ensure greater compliance with QLD trust accounting regulations.

What Has Changed

Previously, you could reconcile a transaction for a certain month even if it was entered outside that period. This functionality has been updated. Now, reconciliations will only include transactions entered within the specific time period being reconciled, whether it's a month, a day, or any other timeframe.

Why This Change is Necessary

While not explicitly stated in the QLD regulations, the Queensland Law Society has confirmed that it is common practice for transactions entered after a month-end to be listed as adjustments in the following month's reconciliation. Our update aligns with this common practice and helps ensure your firm's compliance with trust accounting regulations.

Example Reconciliation

In the example reconciliation below, note the two deposit adjustments highlighted. These are shown as adjustments because their receipt date (i.e., the date they were entered into Actionstep) was outside the monthly period of October (transaction dates were 28/10 and 31/10 but not receipted until 01/11).

Important Considerations

We understand this change may require adjustments to your workflow, particularly for daily reconciliations. We are actively working on enhancements to the trust reconciliation process to make it easier and more efficient for you while maintaining compliance.

Additionally, we're aware that this update may cause variances in previous reconciliations. We are actively investigating a fix and will keep you updated on our progress.

Notes

If you have any questions or concerns regarding the regulatory advice received from the Queensland Law Society, please contact them directly for clarification.

We appreciate your understanding and cooperation as we work together to ensure the accuracy and compliance of your trust accounting processes.