Film Accounting Glossary
Uncleared check
What is an uncleared check?
Also called outstanding check, or uncashed check.
An uncleared check is a payment issued but not yet presented to the bank, so it appears in the ledger and not on the statement.
Uncleared items are the main reconciling difference between a production's cash balance and its bank balance, which is why the cash position is calculated net of them. Checks still uncleared long after wrap need chasing or voiding, because stale-dated checks eventually become unclaimed property with its own filing obligations.
Example
The ledger shows $412,880, the bank $438,150, and nine uncleared checks explain most of the gap. Cash position is calculated net of them, and any still uncleared six months after wrap gets chased or voided before it becomes unclaimed property.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
The main reconciling item between the ledger and the bank statement, listed on every bank reconciliation.
Common mistake
Reading the bank balance as available cash. Uncleared checks are already spent, and treating them as available is how an account gets overdrawn.
Related questions
- How long should a check stay uncleared?
- Not long. Anything outstanding well after wrap gets chased or voided, because stale-dated checks eventually become unclaimed property with its own filing obligations.
- What happens to checks that stay uncleared after wrap?
- They are chased or voided. Stale-dated checks eventually become unclaimed property, which carries its own state filing obligations.