What Is an Outstanding Deposit?

What Is an Outstanding Deposit?

An outstanding deposit is a business term used to indicate an amount of money that has been recorded in the company's ledger but has not yet appeared on its bank statement as a deposit. This generally occurs because of the time needed by the bank to process deposits.

For the purpose of business bookkeeping, an outstanding deposit is considered final, and just waiting for the bank statement to reflect the actual deposit is generally just a formality. In terms of a company's financial statement, outstanding deposits are still counted toward the overall "bottom line" and are considered receivables on the balance sheet.