Outstanding Check

The cheque that has been issued by a bank but has not been created or the one that is in the process of getting cleared is called outstanding. If it is not deposited, the money remains in the payer’s account, which may incorrectly reflect a higher balance of the payer’s account. 

The condition happens in the case when there is a lack of urgency or delays caused by the lack of proper paperwork. Sometimes, it gets lost and returned to the payer due to incorrect address stamps UK or contact information. 

Those who invest in businesses are legally bound to track such lost entities as it gives an impression that the account has a higher balance. Such cheques can cause complications when the attempted payment is tracked in the general ledger but the firm needs to adjust the account during the bank reconciliation. 

Sometimes, after years it may remain outstanding and if the firm is unable to handle it properly, it leads to a violation of the law.

These days it is easy to handle such discrepancies, by keeping a balanced chequebook or enrolling to buy and sell the online UK, where the amount deducts instantly upon making the payment, or the payer can contact the payee to ensure the payment reaches them safely.