{"id":15010,"date":"2026-09-15T06:42:38","date_gmt":"2026-09-15T10:42:38","guid":{"rendered":"https:\/\/www.sage.com\/en-ca\/blog\/?p=15010"},"modified":"2026-09-15T06:42:41","modified_gmt":"2026-09-15T10:42:41","slug":"deposits-in-transit-bank-reconciliation","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-ca\/blog\/deposits-in-transit-bank-reconciliation\/","title":{"rendered":"What are deposits in transit and why are they included in a bank reconciliation?"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--standard entry-header--has-illustration entry-header--has-illustration--standard\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tWhat are deposits in transit and why are they included in a bank reconciliation?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\tEver checked your bank and wondered why a deposit isn&#8217;t showing? It&#8217;s most likely a deposit in transit, a normal part of business that&#8217;s worth tracking in its own right. Here&#8217;s exactly what that is, why it happens, and how to account for it correctly.\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2026-09-15T06:42:38-04:00\">September 15, 2026<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"What are deposits in transit and why are they included in a bank reconciliation?\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-ca\/blog\/deposits-in-transit-bank-reconciliation\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-ca\/blog\/author\/joechurchwoods\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2026\/05\/Joe-Yard-2-crop-350x350.jpg\" class=\"entry-author__image\" alt=\"Joe Church Woods\" \/>\t\t\t\t<span class=\"entry-author__name\">Joe Church Woods<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Imagine that you have a deposit sitting in your account, at least according to your records, but your bank statement says otherwise.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For a day or two,&nbsp;you&#8217;re&nbsp;left staring at two different numbers, unsure which one to trust or what you can&nbsp;actually spend. This happens to&nbsp;almost every&nbsp;business at some point, and&nbsp;it&#8217;s&nbsp;rarely anything to worry about.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But&nbsp;it&#8217;s&nbsp;worth understanding exactly why it happens, so a normal timing gap never gets mistaken for a real problem.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Find out why that gap shows up, the handful of situations where it might not happen at all, how to spot it during your own bank reconciliation, and what to do about it.\u00a0<\/p>\n\n\n<section id=\"key-takeaways\" class=\"wp-block-sage-key-takeaways\"><div class=\"sage-key-takeaways__inner\"><h2 class=\"wp-block-heading has-h-3-font-size\">Key takeaways<\/h2>\n<ul class=\"wp-block-list\">\n<li>A deposit in transit is money\u00a0you&#8217;ve\u00a0recorded in your books that the bank\u00a0hasn&#8217;t\u00a0processed yet; a normal, temporary timing gap, not an error.\u00a0<\/li>\n\n\n\n<li>It&#8217;s\u00a0included in bank reconciliation so your books and your bank balance can be brought back into agreement.\u00a0<\/li>\n\n\n\n<li>Deposits in transit usually clear within one to two business days, though the exact timing depends on the payment method and your bank&#8217;s policies.\u00a0<\/li>\n\n\n\n<li>In some setups, like lockbox or reverse deposit-in-transit arrangements, this timing gap may not occur at all.\u00a0<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n<h3 id=\"h-here-s-what-we-cover\" class=\"wp-block-heading\">Here\u2019s what we cover:<\/h3>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-what-is-a-deposit-in-transit\" data-level=\"2\">What is a deposit in transit?<\/a><\/li><li><a href=\"#h-why-do-deposits-in-transit-happen\" data-level=\"2\">Why do deposits in transit happen?<\/a><\/li><li><a href=\"#h-why-are-deposits-in-transit-included-in-a-bank-reconciliation\" data-level=\"2\">Why are deposits in transit included in a bank reconciliation?<\/a><\/li><li><a href=\"#h-why-deposits-in-transit-might-not-happen\" data-level=\"2\">Why deposits in transit might not happen<\/a><\/li><li><a href=\"#h-what-are-the-benefits-of-recording-deposits-in-transit\" data-level=\"2\">What are the benefits of recording deposits in transit?<\/a><\/li><li><a href=\"#h-what-are-the-risks-of-deposits-in-transit\" data-level=\"2\">What are the risks of deposits in transit?<\/a><\/li><li><a href=\"#h-how-to-find-deposits-in-transit-on-your-bank-reconciliation\" data-level=\"2\">How to find deposits in transit on your bank reconciliation<\/a><\/li><li><a href=\"#h-how-to-determine-and-calculate-deposits-in-transit\" data-level=\"2\">How to&nbsp;determine&nbsp;and calculate deposits in transit<\/a><\/li><li><a href=\"#h-how-to-make-a-journal-entry-for-deposits-in-transit\" data-level=\"2\">How to make a journal entry for deposits in transit<\/a><\/li><li><a href=\"#h-outstanding-cheques-versus-deposits-in-transit-what-s-the-difference\" data-level=\"2\">Outstanding cheques versus deposits in transit:&nbsp;What&#8217;s&nbsp;the difference?<\/a><\/li><li><a href=\"#h-examples-of-deposits-in-transit\" data-level=\"2\">Examples of deposits in transit<\/a><\/li><li><a href=\"#h-tools-that-make-it-easier-to-avoid-reconciliation-headaches\" data-level=\"2\">Tools that make it easier to avoid reconciliation headaches<\/a><\/li><li><a href=\"#h-keep-your-books-and-bank-in-sync\" data-level=\"2\">Keep your books and bank&nbsp;in sync<\/a><\/li><li><a href=\"#h-frequently-asked-questions-about-deposits-in-transit\" data-level=\"2\">Frequently asked questions about deposits in transit<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 id=\"h-what-is-a-deposit-in-transit\" class=\"wp-block-heading\"><strong>What is a deposit in transit?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Deposits in transit are deposits you have recorded in your accounting system before they are cleared by the bank. This timing gap means your books and your bank balance\u00a0don&#8217;t\u00a0match, but only for\u00a0a short time.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can bring these gaps to light by performing bank reconciliation.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is much more than just a quick check;&nbsp;it&#8217;s&nbsp;a key process that keeps your records&nbsp;accurate. Done regularly, reconciliation helps you avoid surprises when paying bills or making decisions.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tracking deposits in transit also makes it easier to spot delays or errors. That means more control over your cash and a clearer view of your financial position.\u00a0<\/p>\n\n\n\n<h2 id=\"h-why-do-deposits-in-transit-happen\" class=\"wp-block-heading\"><strong>Why do deposits in transit happen?<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A deposit in transit happens because&nbsp;there&#8217;s&nbsp;a gap between when you record a deposit and when your bank processes it. Usually because the deposit was made after hours, on a weekend, or right at the end of the business day.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Like many business owners, you&nbsp;probably prefer&nbsp;to deposit cheques at the end of the business day rather than making several trips to the bank.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You record the deposit once&nbsp;it&#8217;s&nbsp;made, but the bank might not process it until the next business day.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">During that time, your money is &#8220;in transit&#8221;:\u00a0you&#8217;ve\u00a0handed it over, but it hasn&#8217;t cleared. If you check your bank account in real time, you\u00a0won&#8217;t\u00a0see it there yet.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There&#8217;s\u00a0a common belief that cheque deposits take three days to clear, but that&#8217;s mostly a myth.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In many cases, banks process deposits within one business day, though longer delays can happen based on the payment method or your bank&#8217;s policies.<\/p>\n\n\n\n<h2 id=\"h-why-are-deposits-in-transit-included-in-a-bank-reconciliation\" class=\"wp-block-heading\">Why are deposits in transit included in a bank reconciliation?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Deposits in transit are included in bank reconciliation because\u00a0they&#8217;re\u00a0the reason your books and your bank balance temporarily\u00a0don&#8217;t\u00a0match, and reconciling brings the two back into agreement.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If&nbsp;you&#8217;re&nbsp;planning ahead&nbsp;or reporting to investors, you need&nbsp;accurate&nbsp;numbers. You&nbsp;can&#8217;t&nbsp;be sure of those numbers if your books and your bank balance&nbsp;don&#8217;t&nbsp;line up.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Deposits in transit create a mismatch\u2014your books say one thing, but your bank says another.\u00a0It&#8217;s\u00a0like two cities in different time zones: both are right from their perspective, but\u00a0they&#8217;re\u00a0not aligned at the same moment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, <a href=\"https:\/\/www.sage.com\/en-ca\/blog\/glossary\/what-is-bank-reconciliation\/\" target=\"_blank\" rel=\"noreferrer noopener\">bank reconciliation<\/a> should always include deposits in transit because it brings everything back in sync. It\u2019s one part of the broader <a href=\"https:\/\/www.sage.com\/en-ca\/blog\/what-is-account-reconciliation\/\" target=\"_blank\" rel=\"noreferrer noopener\">account reconciliation<\/a> process, which keeps every account accurate, not just your bank balance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By including deposits in transit, you avoid reporting errors and keep your records reliable.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This ensures\u00a0you&#8217;re\u00a0not missing money or misreporting your financial position, which is essential for good decisions.<\/p>\n\n\n\n<h2 id=\"h-why-deposits-in-transit-might-not-happen\" class=\"wp-block-heading\">Why deposits in transit might not happen<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Not every business experiences this timing gap the same way, and in some setups, it may not occur at all.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Lockbox arrangements<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">With a lockbox, customer payments go directly to a bank-operated processing centre rather than to you first.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That means the bank often records the deposit before&nbsp;you&#8217;ve&nbsp;logged it in your books, the opposite of a typical deposit in transit.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here,&nbsp;it&#8217;s&nbsp;a structural, ongoing feature of how the business is set up, not an occasional exception.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you use a lockbox, a payment processor, or any setup where a&nbsp;third party&nbsp;records funds before they reach your books,&nbsp;it&#8217;s&nbsp;worth asking your bank or accountant what a normal statement pattern looks like for your situation.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bank ahead of your books (one-off)<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Most timing mismatches happen because the bank is catching up with your records. But occasionally the reverse can occur as an exception (rather than a built-in feature of your setup): the bank registers incoming funds before&nbsp;you&#8217;ve&nbsp;updated your books.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This can happen if a client pays you directly by wire transfer or EFT and you don&#8217;t find out until you check your bank.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It can also happen if your point-of-sale system deposits funds&nbsp;automatically, before&nbsp;you&#8217;ve&nbsp;logged the individual sales in your accounting software.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This kind of mismatch can be confusing if\u00a0you&#8217;re\u00a0reviewing accounts and see more cash than expected, which is one more\u00a0reason why\u00a0regular bank reconciliations matter: they bring both sets of records back into agreement.\u00a0<\/p>\n\n\n\n<h2 id=\"h-what-are-the-benefits-of-recording-deposits-in-transit\" class=\"wp-block-heading\"><strong>What are the benefits of recording deposits in transit?<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Recording deposits in transit properly pays off for your business in three&nbsp;main areas: stronger cash flow planning, better&nbsp;compliance&nbsp;and reporting, and improved internal oversight.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Stronger cash flow planning<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Knowing what funds are on the way, even if they&nbsp;aren&#8217;t&nbsp;yet visible in your bank statement, lets you plan with confidence.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can time payments, manage spending, and avoid guessing at your balance.&nbsp;It&#8217;s&nbsp;a simple step that gives you more control over&nbsp;your&nbsp;<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/why-you-should-be-doing-cash-flow-analysis\/\" target=\"_blank\" rel=\"noreferrer noopener\">cash flow<\/a>.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Compliance and reporting<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Monitoring deposits in transit helps ensure your records reflect all incoming cash.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That matters for taxes, audits, and&nbsp;accurate&nbsp;financial reports, giving you a true picture of your financial position.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Improved internal oversight<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Tracking deposits in transit encourages regular reviews of your banking and bookkeeping activity.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This supports better internal controls, lowers the risk of missed deposits, and keeps your processes tight and reliable.\u00a0<\/p>\n\n\n\n<h2 id=\"h-what-are-the-risks-of-deposits-in-transit\" class=\"wp-block-heading\"><strong>What are the risks of deposits in transit?<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There are three main risks to watch for: overdraft and cash shortfall,&nbsp;fraud&nbsp;or error exposure, and distorted financial reporting. Deposits in transit can create blind spots and exposure to these risks if they&nbsp;aren&#8217;t&nbsp;tracked properly. When your books and your business bank statement&nbsp;don&#8217;t&nbsp;match, you could make decisions based on incomplete information.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Overdraft and cash shortfall risk<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If you assume a deposit has cleared when it\u00a0hasn&#8217;t, you might spend money that&#8217;s not actually available.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Banks only recognize deposits once they process them, not when you record them.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That gap can lead to overdraft fees, bounced payments, or strained vendor relationships, especially if you rely on your books to make business spending decisions.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Fraud and error exposure<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Without regular reconciliation, a deposit could be recorded but never actually made.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Whether&nbsp;it&#8217;s&nbsp;an honest mistake or something more malicious, missing deposits can slip through the cracks. Delays in processing also add to the confusion.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That&#8217;s&nbsp;why&nbsp;it&#8217;s&nbsp;important to reconcile often, flag any deposits that&nbsp;haven&#8217;t&nbsp;cleared after a few days, and&nbsp;maintain&nbsp;strong internal controls.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Distorted financial reporting<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">An unreconciled deposit in transit can make your business cash position look stronger than it is, whether that number goes to an investor, a lender, or your own team.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Decisions made on that inflated figure, like approving a new hire or a big purchase, can leave you short once the real, bank-confirmed balance catches up.\u00a0<\/p>\n\n\n\n<h2 id=\"h-how-to-find-deposits-in-transit-on-your-bank-reconciliation\" class=\"wp-block-heading\"><strong>How to find deposits in transit on your bank reconciliation<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Modern accounting systems can flag reconciliation anomalies automatically. But if\u00a0you&#8217;re\u00a0working manually, spotting deposits in transit is still straightforward. Here&#8217;s how:\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Step 1: Compare your cash ledger to your bank statement<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">To find deposits in transit on your bank statement, look for deposits that appear in your records but not in the bank&#8217;s. These are your deposits in transit.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Step 2: Focus on recent activity<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You&nbsp;probably don&#8217;t&nbsp;need to scan the entire column. Deposits made near the end of the period or after bank hours are the most common culprits.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Step 3: Confirm the dates<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Check your deposit slips and transaction logs. For deposits still pending, physically mark the relevant slips or add comments to digital transaction logs.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Step 4: See it on your reconciliation statement<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Here&#8217;s\u00a0what the comparison looks like once\u00a0it&#8217;s\u00a0complete, on a simplified reconciliation statement:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><\/th><th>Amount<\/th><\/tr><\/thead><tbody><tr><td><strong>Balance per bank statement<\/strong><\/td><td>$12,400<\/td><\/tr><tr><td><strong>Add: deposits in transit<\/strong><strong><\/strong><\/td><td><strong>+ $1,200<\/strong><strong><\/strong><\/td><\/tr><tr><td><strong>Less: outstanding checks<\/strong><\/td><td>\u2013 $850<\/td><\/tr><tr><td><strong>Adjusted bank balance<\/strong><strong><\/strong><\/td><td><strong>$12,750<\/strong><strong><\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 id=\"h-step-5-follow-up-on-anything-still-pending\" class=\"wp-block-heading\">Step 5: Follow up on anything still pending<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If a deposit still\u00a0doesn&#8217;t\u00a0appear in the next period&#8217;s bank statement, follow up. Delays may signal a posting error on your side or an issue with the bank.\u00a0<\/p>\n\n\n\n<h2 id=\"h-how-to-determine-and-calculate-deposits-in-transit\" class=\"wp-block-heading\"><strong>How to\u00a0determine\u00a0and calculate deposits in transit<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To calculate deposits in transit, start with the list of unmatched deposits you identified during reconciliation.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tally the amounts to get a total.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Keep a running list so you know which items will be carried over to the next period. This prevents double-counting and keeps your records clean.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The deposits in transit formula itself&nbsp;is&nbsp;simple:&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Deposits in transit = Deposits recorded in books \u2212 Deposits cleared by bank<\/em><\/strong>&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That total then feeds directly into your reconciliation statement:&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Adjusted bank balance = Bank statement balance + Deposits in transit \u2212 Outstanding cheques<\/em><\/strong>&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.sage.com\/en-ca\/accounting-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">Accounting software<\/a>\u00a0can handle this automatically, but\u00a0it&#8217;s\u00a0still good to understand the logic behind the numbers.\u00a0<\/p>\n\n\n\n<h2 id=\"h-how-to-make-a-journal-entry-for-deposits-in-transit\" class=\"wp-block-heading\"><strong>How to make a journal entry for deposits in transit<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">You&nbsp;don&#8217;t&nbsp;usually make a separate journal entry for deposits in transit. Instead, you record the deposit when you receive the payment or make the bank deposit, whichever comes first, depending on your accounting method.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Say a customer pays a $2,500 invoice by cheque. Once deposited, this single transaction affects two accounts in your\u00a0<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/glossary\/what-is-a-general-ledger\/\" target=\"_blank\" rel=\"noreferrer noopener\">general ledger<\/a>, one showing the cash coming in, the other showing the customer no longer owes you:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Account<\/th><th>Debit<\/th><th>Credit<\/th><\/tr><\/thead><tbody><tr><td>Bank<\/td><td>$2,500<\/td><td>\u2013<\/td><\/tr><tr><td>Accounts receivable<\/td><td>\u2013<\/td><td>$2,500<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Incoming cash is a debit to the bank account, since your bank account is an asset, much like any other investment in your business.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The&nbsp;<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/glossary\/what-is-accounts-receivable\/\" target=\"_blank\" rel=\"noreferrer noopener\">Accounts Receivable (AR)<\/a>&nbsp;side is a credit, since the customer&#8217;s payment reduces what they owe you, in AR terms.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the deposit is still in transit, that $2,500 stays on your books but&nbsp;won&#8217;t&nbsp;match the bank yet. That difference clears up once you reconcile.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Always date the\u00a0<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/glossary\/what-is-a-journal-entry\/\" target=\"_blank\" rel=\"noreferrer noopener\">journal\u00a0entry<\/a>\u00a0accurately so it lines up with your deposit slip.\u00a0<\/p>\n\n\n\n<h2 id=\"h-outstanding-cheques-versus-deposits-in-transit-what-s-the-difference\" class=\"wp-block-heading\"><strong>Outstanding cheques versus deposits in transit:\u00a0What&#8217;s\u00a0the difference?<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Outstanding cheques and deposits in transit are opposites. One is money coming in (deposits in transit), and the other is money going out (outstanding cheques). But both create timing mismatches between your books and your bank statement.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Just as deposits in transit cause delays in posting incoming funds,&nbsp;<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/outstanding-cheques-bank-reconciliation\/\" target=\"_blank\" rel=\"noreferrer noopener\">outstanding cheques<\/a>&nbsp;delay the outflow from your side.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example,\u00a0let&#8217;s\u00a0say\u00a0you&#8217;ve\u00a0written a cheque to a supplier, but they\u00a0haven&#8217;t\u00a0cashed it yet. Until that happens, the money\u00a0hasn&#8217;t\u00a0left your bank account, even though\u00a0it&#8217;s\u00a0no longer truly available.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Deposits in transit<\/th><th>Outstanding check<\/th><\/tr><\/thead><tbody><tr><td>Money coming into your bank account.<\/td><td>Money going out of your bank account.<\/td><\/tr><tr><td>Not yet recorded by your bank.<\/td><td>Not yet recorded by recipient\u2019s bank.<\/td><\/tr><tr><td>Can make your balance look lower than it really is.<\/td><td>Can make your balance look higher than it really is.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">During reconciliation, review\u00a0both of these\u00a0to get\u00a0an accurate\u00a0picture of your cash position.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tracking them helps prevent errors and ensures your records reflect your true available balance.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you regularly deal with supplier payments,\u00a0it&#8217;s\u00a0also worth understanding accounts payable reconciliation, the broader process of making sure what you owe vendors matches\u00a0what&#8217;s\u00a0actually been\u00a0paid.\u00a0<\/p>\n\n\n\n<h2 id=\"h-examples-of-deposits-in-transit\" class=\"wp-block-heading\"><strong>Examples of deposits in transit<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">How often have you gone online to check your bank account and wondered why a payment&nbsp;isn&#8217;t&nbsp;showing up?&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That&#8217;s&nbsp;the effect of a deposit in transit.&nbsp;Let&#8217;s&nbsp;reiterate why they happen with some examples:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cheque deposit made at closing time, processed the next business day.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cash dropped in a night deposit box, posted when staff handle it the next morning.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Weekend credit card sales, often\u00a0don&#8217;t\u00a0reach your account until Tuesday or Wednesday.\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Good business management dictates that you should recognize these deposits immediately.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s&nbsp;good practice to understand where your money is and when it will be available. But the bank&nbsp;won&#8217;t&nbsp;show the deposits until&nbsp;they&#8217;ve&nbsp;been processed.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Best practices for managing deposits in transit<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Even though bank reconciliation helps catch timing issues,&nbsp;it&#8217;s&nbsp;better to reduce those gaps in the first place.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here are some tips that could help:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Consistent logging:<\/strong>\u00a0record deposits at the same time each day or after each transaction batch.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Tagging payment sources:<\/strong>\u00a0use labels to track where each deposit came from, like cheques, POS, or EFT. Specialized software should offer a menu of tags you can choose from.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Minimizing unrecorded deposits:<\/strong>\u00a0avoid letting cash or cheques sit; record and deposit them promptly.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Assigning responsibilities:<\/strong>\u00a0make it clear who\u00a0is in charge of\u00a0logging payments, who deposits them, and who verifies the process.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Flagging large deposits:<\/strong>\u00a0train your team (or set up your accounting platform) to alert managers when unexpected or high-value payments appear in the system.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Correct filing of deposit slips and receipts:<\/strong>\u00a0keep backup entries for every recorded deposit to simplify cross-checking later.\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-tools-that-make-it-easier-to-avoid-reconciliation-headaches\" class=\"wp-block-heading\"><strong>Tools that make it easier to avoid reconciliation headaches<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Manually tracking deposits in transit is straightforward, but&nbsp;it&#8217;s&nbsp;still time-consuming.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Modern reconciliation tools connect your books to your bank in real time to make this work much quicker.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They automatically update your system with every transaction, flag timing differences, and highlight missing items.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some systems even suggest how to match partially posted or slightly mismatched entries. For example, they can&nbsp;identify&nbsp;whether a deposit is&nbsp;comprised&nbsp;of multiple transactions.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For businesses managing cash across multiple accounts or entities, some&nbsp;<a href=\"https:\/\/www.sage.com\/en-ca\/sage-business-cloud\/intacct\/core-financials\/cash-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">cash management automation software<\/a>&nbsp;goes a step further, giving you a&nbsp;consolidated, real-time view of cash position alongside the reconciliation itself.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Automated tools reduce errors and give better visibility into your cash flow.\u00a0You&#8217;ll\u00a0see\u00a0what&#8217;s\u00a0cleared and\u00a0what&#8217;s\u00a0pending\u00a0at a glance. The result is fewer surprises and easier decision-making.\u00a0<\/p>\n\n\n\n<h2 id=\"h-keep-your-books-and-bank-in-sync\" class=\"wp-block-heading\"><strong>Keep your books and bank\u00a0in sync<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Timing gaps between your records and bank processes are a standard part of running a business, and deposits in transit are a natural consequence of that.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tracking these pending deposits helps you stay aware of your true cash position, whether&nbsp;you&#8217;re&nbsp;making daily spending choices or mapping out long-term plans.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With regular reconciliation and the right&nbsp;<a href=\"https:\/\/www.sage.com\/en-ca\/integrated-payment-solutions\/bank-reconciliation-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">bank reconciliation software<\/a>, stray deposits become easy to manage.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You&#8217;ll\u00a0gain more control, reduce uncertainty, and make better strategic decisions.<\/p>\n\n\n<section class=\"wp-block-sage-faq\">\n\t\n<h2 id=\"h-frequently-asked-questions-about-deposits-in-transit\" class=\"wp-block-heading\"><strong>Frequently asked questions about deposits in transit\u00a0<\/strong><\/h2>\n\t\t\t<div class=\"faq-items\">\n\t\t\t<div class=\"wp-block-sage-faq-item\" id=\"faq-item-0c588e30\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-are-deposits-in-transit-considered-errors\" class=\"wp-block-heading\"><strong>Are deposits in transit considered errors?<\/strong>\u00a0<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">No, deposits in transit\u00a0aren&#8217;t\u00a0mistakes.\u00a0They&#8217;re\u00a0normal timing differences between when you record a deposit and when the bank processes it. They only become an issue if\u00a0they&#8217;re\u00a0not tracked or reconciled regularly, which can lead to confusion or missing funds.<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-67dd335e\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-are-deposits-in-transit-considered-cash\" class=\"wp-block-heading\"><strong>Are deposits in transit considered cash?<\/strong>\u00a0<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">Yes, from your accounting perspective, they count as cash.\u00a0You&#8217;ve\u00a0already received the money, so\u00a0it&#8217;s\u00a0recorded in your books. It just\u00a0hasn&#8217;t\u00a0cleared the bank yet. Until it does, it stays in transit.<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-d5a7a396\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-how-long-do-deposits-in-transit-take-to-clear\" class=\"wp-block-heading\"><strong>How long do deposits in transit take to clear?<\/strong><\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">It depends on the type of deposit. Cash usually clears the next business day. Cheques can take two or more days, depending on when\u00a0they&#8217;re\u00a0deposited. Electronic and card payments often move faster, but weekends and public holidays can cause delays even in the digital realm.<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-a50e4a96\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-are-deposits-in-transit-the-result-of-outstanding-cheques\" class=\"wp-block-heading\"><strong>Are deposits in transit the result of outstanding cheques?<\/strong><\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">No,\u00a0they&#8217;re\u00a0two separate things. A deposit in transit is money coming into your account that\u00a0hasn&#8217;t\u00a0cleared yet; an outstanding cheque is money going out that the recipient\u00a0hasn&#8217;t\u00a0cashed yet.\u00a0They&#8217;re\u00a0opposites, not cause and effect, though both can appear on the same reconciliation at once.<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-111719dd\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-do-deposits-in-transit-affect-a-company-s-consolidated-financial-statements\" class=\"wp-block-heading\"><strong>Do deposits in transit affect a company&#8217;s consolidated financial statements?<\/strong><\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">Not materially, if reconciled properly. Since a deposit in transit is already recorded in your books, it shows up correctly in your financial statements regardless of whether the bank has processed it yet. The reconciliation process exists specifically to confirm that timing difference\u00a0doesn&#8217;t\u00a0distort your reported cash position.<\/p>\n\t\t<\/div>\n\t<\/div>\n\t\t<\/div>\n\t<\/section>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p class=\"cta-content__title\">Get a roundup of our best business advice in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-8949a954-88b2-43bb-8b8a-77c53eb34350\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img 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button--secondary\">\n\t\t\t\t\t\t\t\tAccounting 101\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/bookkeeping\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tbookkeeping\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/business-continuity\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tBusiness continuity\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/business-finances\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tbusiness finances\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/cash-flow\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tcash flow\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/small-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tsmall business\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-12509 post type-post status-publish format-standard has-post-thumbnail hentry category-growth-customers category-strategy-legal-operations tag-accounting-101 tag-bookkeeping tag-business-intelligence tag-midsized-business tag-profit-and-loss tag-small-business business_type-small-business business_type-medium-business card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/12\/GettyImages-1252669747-1440x810.jpg\" class=\"card-post__image\" alt=\"Woman smiling at desk\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/12\/GettyImages-1252669747-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/12\/GettyImages-1252669747-768x432.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/12\/GettyImages-1252669747-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-30T06:56:49-04:00\">September 30, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">11 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/what-is-a-trial-balance\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tWhat is a trial balance in accounting? A complete guide\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tA trial balance is one of the simplest tools to confirm your books are accurate before you prepare formal financial statements. Here&#8217;s what it is, how to prepare one, and what to do if the totals don&#8217;t match.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-12478 post type-post status-publish format-standard has-post-thumbnail hentry category-accountants category-strategy-legal-operations category-trends-insights tag-accounting-101 tag-bookkeeping tag-business-finances tag-business-intelligence tag-cash-flow tag-financial-insights tag-midsized-business tag-profit-and-loss tag-small-business business_type-small-business business_type-medium-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/net-income-formula\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2023\/04\/GettyImages-1011227656-708x708-1-684x384.jpg\" class=\"card-post__image\" alt=\"woman working\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2023\/04\/GettyImages-1011227656-708x708-1-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2023\/04\/GettyImages-1011227656-708x708-1.jpg 708w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2023\/04\/GettyImages-1011227656-708x708-1.jpg 708w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-30T06:44:33-04:00\">September 30, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tNet income formula: How to calculate net income\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-10066 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-accounting-101 tag-business-intelligence tag-data-analysis tag-financial-insights tag-how-to-grow-your-business tag-small-business business_type-small-business business_type-medium-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/what-is-markup-percentage\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"640\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2023\/05\/GettyImages-1283894303-640x640-1-640x384.jpg\" class=\"card-post__image\" alt=\"woman in office\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2023\/05\/GettyImages-1283894303-640x640-1-640x384.jpg 640w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2023\/05\/GettyImages-1283894303-640x640-1.jpg 640w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2023\/05\/GettyImages-1283894303-640x640-1.jpg 640w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-30T06:29:56-04:00\">September 30, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tMarkup calculator: How to calculate markup percentage\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-8926 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-bookkeeping tag-business-continuity tag-business-finances tag-cash-flow tag-small-business business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/why-you-should-be-doing-cash-flow-analysis\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-643644406-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-643644406-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-643644406-768x432.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-643644406-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-24T11:43:07-04:00\">September 24, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">11 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tCash flow analysis guide: Definition, steps, and examples\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-12545 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations category-trends-insights tag-accounting-101 tag-bookkeeping tag-business-intelligence tag-business-strategy tag-cfo tag-financial-insights tag-how-to-grow-your-business tag-investments tag-midsized-business tag-profit-and-loss tag-staying-competitive business_type-small-business business_type-medium-business business_type-accountants industry-construction industry-financial-services\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/real-estate-accounting\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2023\/01\/iStock-502937784-1024x683-1-684x384.jpg\" class=\"card-post__image\" alt=\"woman in office\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2023\/01\/iStock-502937784-1024x683-1-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2023\/01\/iStock-502937784-1024x683-1-768x512.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2023\/01\/iStock-502937784-1024x683-1.jpg 1024w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-24T11:10:18-04:00\">September 24, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tReal estate accounting: A complete guide\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Ever checked your bank and wondered why a deposit isn&#8217;t showing? It&#8217;s most likely a deposit in transit, a normal part of business that&#8217;s worth tracking in its own right. Here&#8217;s exactly what that is, why it happens, and how to account for it correctly.<\/p>\n","protected":false},"author":1847,"featured_media":13498,"menu_order":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_is_cornerstone":"","_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_opengraph-title":"","_yoast_wpseo_opengraph-description":"","_yoast_wpseo_opengraph-image":"","_yoast_wpseo_opengraph-image-id":"","_yoast_wpseo_twitter-title":"","_yoast_wpseo_twitter-description":"","_yoast_wpseo_twitter-image":"","_yoast_wpseo_twitter-image-id":"","_yoast_wpseo_schema_page_type":"","_yoast_wpseo_schema_article_type":"","_sage_video":false,"_yoast_wpseo_focuskeywords":"[{\"keyword\":\"deposit in transit meaning\",\"score\":61},{\"keyword\":\"what are deposits in transit\",\"score\":81},{\"keyword\":\"hat is a deposit in transit\",\"score\":61}]","_yoast_wpseo_keywordsynonyms":"[\"deposit in transit\",\"\",\"\",\"\"]","_yoast_wpseo_primary_category":"7","sage_membership_post_content_type":"article","sage_membership_post_featured_video_id":"","sage_membership_post_video_type":"trailer","sage_membership_post_featured_video_duration":"","post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[7],"tags":[162,165,224,266,271,267],"business_type":[3],"lilypad":[],"context":[],"industry":[],"persona":[100,73,83],"imagine_tag":[35,67],"coauthors":[460],"class_list":["post-15010","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-accounting-101","tag-bookkeeping","tag-business-continuity","tag-business-finances","tag-cash-flow","tag-small-business","business_type-small-business"],"sage_meta":{"region":"en-ca","author_name":"Joe Church Woods","featured_image":"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/10\/fund-accounting-for-nonprofits.jpg","imagine_tags":{"35":"accounting software","67":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice Canada English","distributor_original_site_url":"https:\/\/www.sage.com\/en-ca\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/15010","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/users\/1847"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/comments?post=15010"}],"version-history":[{"count":5,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/15010\/revisions"}],"predecessor-version":[{"id":15024,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/15010\/revisions\/15024"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/media\/13498"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/media?parent=15010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/categories?post=15010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/tags?post=15010"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/business_type?post=15010"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/lilypad?post=15010"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/context?post=15010"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/industry?post=15010"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/persona?post=15010"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/imagine_tag?post=15010"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/coauthors?post=15010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}