Trust accounting is a vital function for TPAs, demanding precise attention to detail and strict accuracy in managing client plan assets. Traditionally, trust accounting involves manual data entry from brokerage statements, reconciliation across multiple accounts, and report generation. This manual process is not only time-consuming but also prone to errors, especially when handling high volumes of data or complex multi-account statements.
The Challenge
TPAs often face these common trust accounting challenges:
Time-Consuming Manual Work: Extracting and reconciling data from financial statements manually takes hours per plan and slows down operations.
High Error Risk: Manual entry increases the risk of errors, leading to discrepancies in trust accounting reports.
Complex Data Management: Managing various statements across clients and plans, especially those with multiple accounts, can cause bottlenecks and overwhelm teams.
Compliance Pressure: Regulatory requirements demand accurate reporting, and manual processes heighten the risk of non-compliance.
Revolutionizing Trust Accounting with AI
Our Trust Accounting Workflow harnesses AI to automate data extraction, reconciliation, and reporting. By eliminating manual tasks, improving data accuracy, and streamlining even the most complex trust accounting processes, our solution saves time and reduces errors.
Key Features
Automated Data extraction
Our system automatically extracts key data—balances, transactions, contributions, and more—from both digital and scanned financial statements from providers like Charles Schwab, Fidelity, Merrill Lynch, and Wells Fargo Advisors.
Real-Time Reconciliation
The workflow populates reconciliation spreadsheets in real-time, reducing manual entry and ensuring fast, accurate reporting.
Adaptability
Our AI adapts to complex multi-account statements and can handle format changes, ensuring accurate data extraction across all types of documents.
Scalability
Whether you’re processing hundreds or millions of pages, our solution scales effortlessly, providing efficiency across multiple clients and plans.
Integration and customization
The workflow integrates seamlessly with platforms like PensionPro and allows for customizable folder structures to fit your operational needs.
Automating Trust Accounting for Self-Directed Brokerage Accounts
Scenario
A mid-sized TPA handles trust accounting for a client with 15 self-directed brokerage accounts, receiving monthly statements from multiple financial providers. Each statement contains complex data, such as balances, contributions, distributions, and fees. The team is overwhelmed by the manual effort required to extract and reconcile this data while preparing participant-level reports.
Solution
By implementing the Stax·ai Trust Accounting Workflow, the TPA automates the process:
Data Extraction: Uploading the statements into Stax·ai automatically extracts all relevant financial data and splits complex, multi-account statements.
Reconciliation: Data is populated into a pre-configured reconciliation spreadsheet, with discrepancies flagged for quick review.
Custom Reporting: The system generates real-time, participant-level reports, simplifying client communication and providing detailed financial summaries.
Results
Time Savings: The TPA saves 3–8 hours per plan annually. For the 15 brokerage accounts, this workflow frees up approximately 90–120 hours per year.
Increased Accuracy: By eliminating manual entry, the TPA drastically reduces errors, ensuring compliance and enhancing client confidence.
Improved Efficiency: Automated processing and report generation allow the TPA to focus on higher-level tasks and provide better client service.
Conclusion
Our Trust Accounting Workflow revolutionizes how TPAs manage trust accounting by automating key processes, improving accuracy, and delivering substantial time savings. With scalable and adaptable technology, Stax·ai helps TPAs handle even the most complex trust accounting tasks efficiently, allowing teams to focus on delivering higher-value services to clients.
Ready to transform your trust accounting process?
Request a demo today to see how we can save you time, effort, and money.