What is an outstanding check?

An outstanding check is a check that has been written and recorded in the issuer's ledger, but has not yet been cashed or deposited by the recipient. It is essentially a payment that has been authorized by the issuer but has not been processed by the recipient's bank.

There are various reasons why a check may be outstanding, including delays in the mail, the recipient forgetting to deposit the check, or the recipient intentionally holding onto the check for a specific reason.

It is important for both the issuer and the recipient to keep track of outstanding checks to ensure accurate financial records. Issuers should periodically review their bank statements to identify any outstanding checks and recipients should promptly deposit or cash any checks they receive to avoid potential issues with delayed payments or insufficient funds.