Outstanding and stale checks in a trust account

Outstanding checks are checks you've written and recorded in the trust ledger that haven't cleared the bank. Deposits in transit are receipts you've recorded that aren't on the statement yet. Both are timing differences: they explain why the bank balance and the book differ on the statement date.

How they're used

Adjusted bank balance = statement ending balance + deposits in transit − outstanding checks. It should equal the trust ledger balance.

Carry them forward

An item outstanding at the end of September should clear in October — or still be outstanding on October's reconciliation. Tiesheet Pro saves the month's outstanding list and includes it next month, so an old check doesn't silently drop out.

When a check goes stale

Tiesheet flags outstanding checks over 90 days old and deposits in transit over 10 days. An old uncashed trust check means the money still belongs to the payee or client: contact them, reissue if needed, and if you can't find them follow your state's rules on unclaimed funds. A deposit that never reaches the bank needs investigating straight away.

Last reviewed 2026-10-27. General information, not legal or accounting advice — your state's rules decide how trust accounts must be kept and reconciled.