What is a bank deposit?

A bank deposit is the placement of funds into a bank account. Deposits include cash, checks, wire transfers, ACH payments, and credit card settlements. Proper deposit handling ensures funds reach the correct account, post to the correct date, and reconcile accurately. For accounting purposes, deposits represent the moment cash becomes available for use.

Deposit timing and availability

Cash and wire transfers typically post the same day. ACH transfers take one to three business days. Checks may be subject to holds, especially for new accounts or large amounts. Credit card settlements arrive on a schedule determined by your processor. Understanding these timing differences matters for cash forecasting and avoiding overdrafts on tight float days.

Matching deposits to receivables

Each deposit should match specific customer payments. Unidentified deposits create reconciliation problems and may indicate payment application errors. When clients pay multiple invoices with one check, document the allocation. When deposits combine multiple payments, record each component separately in your accounting system.