How to Record Returned Check in QuickBooks
Dealing with returned checks can be a challenging aspect of managing finances, especially for small businesses. QuickBooks, being a widely-used accounting software, provides a straightforward method to record returned checks. In this article, we will guide you through the process of recording a returned check in QuickBooks, ensuring that your financial records remain accurate and up-to-date.
Step 1: Open QuickBooks and Navigate to the Bank Account
To begin recording a returned check, you first need to open QuickBooks and navigate to the bank account where the check was originally deposited. This can typically be found under the “Banking” section of the menu.
Step 2: Select the Bank Account and Choose “Write Check”
Once you have accessed the bank account, click on the “Write Check” option. This will open a new window where you can enter the details of the returned check.
Step 3: Enter the Check Information
In the “Write Check” window, you will need to enter the following information:
– Date: Enter the date when the check was originally issued.
– Payee: Enter the name of the person or entity to whom the check was written.
– Amount: Enter the amount of the check.
– Memo: Provide a brief description of the transaction.
Step 4: Select the Account and Class
Next, select the appropriate account and class for the returned check. This will depend on your specific accounting setup. Common accounts used for returned checks include “Bank Fees” or “Uncollected Receivables.”
Step 5: Record the Check as a Negative Amount
Since the check has been returned, you will need to record it as a negative amount. To do this, enter a negative value for the “Amount” field. This will ensure that the check is properly reflected in your financial records.
Step 6: Save and Close the Check
After entering all the necessary information, save the check and close the “Write Check” window. The returned check will now be recorded in QuickBooks.
Step 7: Reconcile the Bank Account
Finally, it is important to reconcile your bank account to ensure that the returned check is properly reflected in your records. To do this, go to the “Banking” section and select “Reconcile.” Follow the prompts to compare your bank statement with your QuickBooks records and make any necessary adjustments.
By following these steps, you can easily record a returned check in QuickBooks. This will help you maintain accurate financial records and ensure that your business remains financially stable. Remember to always keep track of returned checks and take appropriate actions to address any underlying issues that may have caused the check to be returned.
