Handle outstanding checks and deposits

What Counts As Outstanding

An outstanding item is a real transaction the bank has not processed yet. It belongs in the books and must stay unchecked until it clears.

• A check written before the statement date that the payee has not deposited.
• A deposit made near the cutoff that the bank credited after it.
• An electronic payment initiated but not settled by the statement date.

These make the register balance and the statement balance differ legitimately. That difference is expected and is not something to adjust away.

Leave Them Unchecked

Check only what appears on the statement. Every outstanding item stays unchecked and appears under Prior uncleared in later periods until the statement that clears it.

If the reconciliation balances with those items left unchecked, the period is correct. See Match transactions to the statement.

At A First Reconciliation

When setting a starting point for an account reconciled before it moved to LedgerHQ, enter the items still outstanding on that date. Each one needs a date and a nonzero amount. Omit them and they will be treated as already cleared, and every later period will be off.

See Prepare for your first reconciliation.

Review Aging Items

Each period, look at what has been outstanding a long time. A check outstanding for several months usually means one of:

• it was never delivered or was lost;
• it was recorded twice and one copy will never clear;
• it was voided at the bank but not in the books.

Investigate the cause and correct the source transaction. Do not check it to clear the list, and do not delete register history to tidy the balance.

A long-outstanding item is also a reason a reconciliation Tally would otherwise finish comes back to you — clearing the cause usually lets the automated run pick the account up again.

If it cannot be explained, create a support ticket with the company, account, transaction date, amount, and description before adjusting anything.