Running an accounting practice often means making strategic calls—some bigger than others. One of the more practical ones? Deciding whether to handle trust account audits in-house or to outsource them to a qualified external auditor.

Both options have their place, and neither is one-size-fits-all. What works for a large city-based firm may be completely unsuitable for a smaller regional practice. If you're weighing up the pros and cons of each approach, you're in the right place.

 

Let’s break it down simply so you can make the best choice for your team, your clients, and your bottom line.

 

Why Trust Account Audits Matter

If your firm works with clients who hold money on trust—think legal practices, real estate agencies, or even fellow accountants—you probably already know that trust account audits are a legal requirement. These audits must be conducted annually, and strict deadlines apply depending on your state or profession.

Not only do these audits help maintain transparency and protect client funds, but they also ensure your clients stay compliant with regulatory standards like APES 310 or other industry-specific rules. For any firm looking to grow in the compliance space, offering trust account audit for accountant clients can be a valuable and strategic addition to your services—provided the audits are carried out properly and on time.

Whether you handle these audits in-house or outsource them, accuracy and timeliness are critical. The penalties for getting it wrong (or missing deadlines) can be steep—both financially and reputationally.

 

In-House Trust Account Audits – The Pros

1. Greater Control
Keeping audits in-house means your team manages the process from start to finish. You choose the timeline, the approach, and the level of communication with the client.

2. Immediate Availability
If you’ve got qualified auditors on staff, you won’t be waiting around for an external provider to slot you into their calendar.

3. Integrated Workflow
Your audit process can be integrated directly into your existing systems and software, making it easier to collaborate internally and access key documentation.

4. Adds a Revenue Stream
In-house audits let you retain 100% of the audit fee instead of passing part of it to a third party. It’s a smart way to grow revenue, especially if you already serve industries that require regular trust audits.

 

In-House Trust Account Audits – The Cons

1. Resourcing Challenges
If your team’s already stretched thin, adding time-consuming trust audits can lead to bottlenecks, delays, and overworked staff.

2. Risk of Bias or Perceived Conflict
You can’t audit your own client trust accounts due to independence requirements. That limits the scope of who your firm can service and could reduce your ability to scale this offering internally.

3. Training & Compliance Burden
Your auditors need to stay current with audit standards, regulations, and changes to professional conduct rules. That takes time, training, and constant updates—not always ideal for smaller firms.

 

Outsourced Trust Account Audits – The Pros

1. Access to Specialist Expertise
External auditors often specialise in trust accounts, so they bring deep knowledge, up-to-date practices, and a refined audit approach. That can reduce errors and increase confidence in the outcome.

2. Saves Time and Internal Resources
Outsourcing frees your team to focus on core services—whether that’s tax, advisory, or compliance—without compromising the audit quality.

3. Ideal for Independence Requirements
If you provide bookkeeping, tax advice, or other services to a client who also needs a trust audit, outsourcing to a qualified third party solves the independence issue immediately.

4. Flexibility Without the Overhead
You avoid the costs of hiring or training in-house auditors and can scale audit capacity up or down as needed throughout the year.

 

Outsourced Trust Account Audits – The Cons

1. Less Control Over Process
You’re relying on someone outside your firm. That can mean slower turnaround times or difficulties getting updates if communication isn't solid.

2. Potential Client Disconnect
Some clients prefer a one-stop-shop model and might not love the idea of a third party handling their audit. You’ll need to manage those expectations.

3. Quality Varies Between Providers
Not all auditors are created equal. If you don’t partner with someone who understands your industry or client base, the process could become more frustrating than helpful.

 

What’s Right for Your Firm?

Ask yourself a few key questions:

• Do we have the staff, systems, and skills to take on audits ourselves?
   

• Are we looking to grow this as a core service offering or keep it as a value-add?
   

• Do we work with clients whose trust audits we legally can’t do ourselves?
   

• Would outsourcing give us more flexibility and peace of mind?
   

There’s no perfect answer. But there is a best fit—and it might shift as your firm evolves.

 

Takeaway

Choosing between outsourcing and doing it in-house isn’t just about time or cost. It’s about compliance, capacity, and client expectations.

For some, keeping it internal helps build revenue and client trust. For others, partnering with a trusted third-party auditor offers a clean, efficient, and stress-free path forward—especially when independence matters.

Whether you handle it yourself or bring in help, ensuring a proper trust account audit for accountant clients is more than ticking a compliance box. It’s a sign that your firm takes integrity and accountability seriously.