- Mary Anne Harris
Review Outstanding Deposits
Updated: Feb 1, 2022
Outstanding deposits, also known as deposits in transit, are receipts (cash, checks, incoming wires) entered your records / closing software but not processed by the bank. Until collected, they also represent a file shortage.
How do you know if you have outstanding deposits?
First, reconcile your trust account.
Second, compare receipts recorded as having been received against what has cleared the bank.
Third, investigate any receipts that have not cleared the bank. If you find that there are some receipts that have not cleared the bank, then it's time to track them down. Did the check get left in the file? Did the check received or funds wired in get deposited or wired into the correct bank account? Were the funds even collected at closing? All of these have happened. That's why it is so important to reconcile your account at least monthly and follow up on those outstanding deposits as quickly as possible. The sooner you reach out to the customer to collect the missed funds or cash the check, the better chance you have of collecting those funds. Otherwise, it may be your operating account that has to fund the shortage.
Don't have time to reconcile your accounts? Positively Balanced will keep your accounts reconciled on your schedule whether it be on a daily, weekly or monthly basis. We notify you of those outstanding deposits and other important issues that pertain to your trust account.