How do you record a returned check in QuickBooks? Handling returned checks is an essential part of managing your business’s finances, and QuickBooks makes the process straightforward. Whether it’s due to insufficient funds or a customer’s dispute, recording a returned check accurately is crucial for maintaining accurate financial records and ensuring you can follow up on the outstanding amount. In this article, we’ll guide you through the steps to record a returned check in QuickBooks, helping you stay on top of your accounts receivable and maintain a healthy cash flow.
Before diving into the steps, it’s important to note that a returned check in QuickBooks is essentially a negative bank deposit. This means that instead of adding funds to your account, you’ll be subtracting them. Here’s how to record a returned check in QuickBooks:
1.
Log in to your QuickBooks account and navigate to the “Banking” tab.
2.
Click on “Write Checks” to access the check writing feature.
3.
Enter the date of the returned check and the amount that was originally written.
4.
Select the “Deposit to” account as “Checking” since the funds are being returned to your checking account.
5.
Click on “Record Check” to record the returned check.
6.
QuickBooks will prompt you to enter the memo or note for the returned check. This is where you can record any relevant information, such as the customer’s name and the reason for the return.
7.
Review the transaction details to ensure they are correct, then click “Save and Close” to finalize the entry.
Once the returned check is recorded, QuickBooks will automatically update your accounts receivable and bank account balances. This will help you keep track of the outstanding amount and follow up with the customer who returned the check.
It’s also a good practice to reconcile your bank account regularly to ensure that the returned check has been properly recorded and that your account balances are accurate. To reconcile your bank account in QuickBooks:
1.
Navigate to the “Banking” tab and click on “Reconcile.”
2.
Select the appropriate bank account and the ending date of your bank statement.
3.
Enter the ending balance from your bank statement.
4.
QuickBooks will display a list of transactions that need to be cleared. Check off the returned check to indicate that it has been recorded.
5.
Click “Reconcile Now” to finalize the reconciliation.
By following these steps, you can easily record a returned check in QuickBooks and maintain accurate financial records. Remember to stay proactive in following up with customers who return checks, as this can help prevent future issues and ensure that your business’s cash flow remains healthy.
