Deposits and collections refer to the processes involved in receiving and managing funds in a financial context. A deposit is the act of placing money into a bank account, while collections involve gathering payments owed to an individual or organization. These activities are essential for maintaining cash flow and ensuring financial stability. In business, effective deposits and collections help manage accounts receivable and improve liquidity. Companies often use various methods, such as electronic transfers or checks, to facilitate deposits. For collections, businesses may employ strategies like sending reminders or using collection agencies to recover outstanding debts.