View In English

What are Outstanding Checks? Definition Meaning Example

Outstanding Checks

If you cannot find the issuer, consult your state’sabandoned property program to claim assets. This documentation will come in handy if you need to prove to state regulators that you made reasonable attempts to complete the payment. If an outstanding check is cashed after you asked a bank to stop the payment, you will be responsible for proving that you took the necessary steps to complete the payment. If you write a check and the money never leaves your account, you may develop the false belief you can spend those funds, but the money still belongs to the payee. If the payee finally deposits the check after months of delay, you riskoverdrawing your account and bouncing the check. When you pay someone by check,your payeemust deposit or cash the check to collect the payment. The payee’s bank will request money from your bank, and the transaction concludes when your bank sends funds to the payee’s bank.

Business Units are responsible for transferring the funds from their agency sole custody accounts once the required information is transmitted to OSC OUF. An outstanding check list is maintained to account for any checks that have not cleared the bank at the end of the month when a cash reconciliation is completed.

Unclaimed Property List

The definition of an outstanding check is a check that has been written, but it hasn’t been cashed-deposited by the bank, or otherwise cleared the bank. You might also fail to report unclaimed paychecks to your state. If you don’t report the unclaimed Outstanding Checks property to your state, you could face penalties. Make sure you establish procedures for dealing with unclaimed paychecks before these issues come up. When you pay an employee with a paycheck, they do not have to cash it right away.

Outstanding Checks

Outstanding Checks are all un-cashed disbursements issued by the City over the past three years. Items more than three years old as of March 1st are moved to the City’s unclaimed property account by July 1st of each year. Call or email payees who fail to deposit checks and ensure that the check was, in fact, received. If they have the check, try to persuade them to deposit the check. If that doesn’t work, send a letter informing payees the check has not been presented and officially request they notify you if they have not received the payment. If a payee receives a check and does not present it for payment at once, there is a risk that the payer will close the bank account on which the check was drawn.

Examples of List of outstanding checks in a sentence

This could result in a “bounced check”, and you may be charged a “non-sufficient funds” fee by your bank. It may also damage your relationship with the vendor or person you gave the check to. Balancing your checkbook is akin to what professional accountants do during reconciliation. It’s a way of making sure that you and your bank agree about your account balance and available funds. It can be tricky to balance a checkbookand we have a worksheet with step-by-step instructions to help you.

Coconut Creek Man Accused of Defrauding Car Dealers With Fake Checks Worth a Half-Million – NBC 6 South Florida

Coconut Creek Man Accused of Defrauding Car Dealers With Fake Checks Worth a Half-Million.

Posted: Fri, 28 Oct 2022 01:26:36 GMT [source]

An NSF check is a one that has not been honored by the bank due to insufficient funds in the bank accounts. This means that the check amount has not been deposited in your bank account. As a result, you will have to deduct it from your cash account records. It’s important to keep track of the amount of checks outstanding because they could be cashed at anytime. You may have had even cash in the account when you wrote the check, but a month later your account might be lower. It’s important to keep enough money in your account to cover all the outstanding checks at all times.

Leave a comment


    Tech Support Request

    *Please use this form to report ONLY technical issues.
    You can use the contact form on the website if you have any general questions. - Thank you!