Depository Transfer Check (DTC)

Coordinating the finances of a business at a location or even several locations in a city or state can be a challenge, but an organized person can usually manage. What about when the business expands further to have locations in different states throughout the country? How does central accounting get organized on a daily basis, especially when dealing with cash if the business is in retail?

The Depository Transfer Check is one tool used to manage a company’s deposit of daily receipts for improved cash management. Each location manager remits their daily respective data to a concentration bank. The concentration bank then issues the Depository Transit Checks for each location into the check processing system.

Although it has been slowly supplanted by the less expensive Automatic Clearing House system, the Depository Transfer Check is still deployed by older businesses. Both systems are invaluable for accounts receivable reconciliation.