How to record a bounced check in QuickBooks
QuickBooks offers exceptionally great advantages and benefits that couldn’t be compared to any other accounting software. The software does provide the user with options like payroll management, bookkeeping, reporting, taxation, and a lot more. With that, it also comprises of a button of bounced check, the past transaction record. So, there are possible reasons when the check comes back.
You need to learn how to handle the accounting of your QuickBooks online as a customer’s check bounces. Unfortunately, one does experience a lot of complications concerning bounce checks. So, if you wish to record bounced checks in QuickBooks, here is how you can do it.
What needs to be recorded?
The steps can be a bit too complex, but if you correctly balance your account, you will have a simple and clear idea of it.
- You need to show that the customer’s check amountwas deducted from your bank balance
- Also, the bank has charged you a fee that needs to be shown
- The customer invoice that they were supposed to pay needs to be marked as ‘unpaid’ and ‘open’
- Further, charging your customer for the inconvenience caused to you as ‘fees’
- Sending your customer, a statement that informs them how much you owe for the original invoice and fees.
Recording of the Bounce Check
- On your Quickbook Premier Home page, you need to click on the ‘Received payment’ option
- Now, moving on click the ‘Previous’ button until you spot the transaction that is associated with the bounced check
- Now, you need to click on the bounced check button
- Further, you can enter the amount your bank has charged you for the check bounced
- This can be mentioned in the ‘bank fee charged’ text field
- With that, you have to select the ‘charge client for fee’ option, this is when you wish to apply for your service charge to the customer
- Once done, fill in the fees that you want to charge and then Enter
- Now, Save & Close
- Your fees to customer along with the bank fees both of it are added together
- You will now see QuickBooks producing the invoice for the total charges
- You have to select Item list from the QB list menu
- Now, click on the Item button and then choose New in it
- Remember, this is merely an empty item and has to simply be tracking the bounced check
- Further, you need to select for other charges, give it a name as ‘Bounced check’
- You can leave the amount field blank for now and select the None option from the Tax code list that appears
- In the account Menu, chose a bank account from the list and then click on NEXT
- This process requires to be repeated to create a second another charge item, this can be named as ‘Bad check charge’
- This is required to only check your bounced check charges
- You can further leave the amount for this one blank too and set the Tax Code to be opted ‘None’
- Now, you can choose an income account i.e. ‘NSF charge’ in your account field
- If you don’t see any account, you can create it and then choose the OK option
- Select customer center from the customer Menu
- Now, click on the ‘customers and Job’ and then choose the customer that the check is bounced for
- Right-click the customer’s name and then select ‘Create Invoice’
- Select Bounced check for the items that you see on the first line of invoicing, this will be utilized based on the amount for NSF check.
- You can make use of the ‘Bad Check Charge’ items in your second line for invoice and further enter the number of bank fees that you were charged.
QuickBooks Desktop for Windows
QuickBooks desktop is a great account software made by Intuit for today’s use! 3 different products come under QB desktop for Window one is QuickBooks Desktop Pro, QuickBooks Desktop Premier, and QuickBooks Desktop Enterprise.
Each has its own set of features, capability, benefits that users can make use of. Pro is used for small businesses, premier for medium businesses, and Enterprise for large businesses.
QuickBooks Desktop for Mac
This is accounting software designed solely for Mac users. This software allows the user to integrate their QuickBooks with the iCloud-based application and the data. Desktop for Mac delivers the user with core accounting features, just as the rest of the QuickBooks desktop line.
There is an ample and versatile list of features delivered to you from this QB Desktop for Mac.
Some of them are contractor management, sales, time as well as expense tracking, email tracking, inventory management along invoicing. Desktop for Mac gives the user the ability to get done with reports through Pre-built ones, export the number to excel easily. One can also witness great financial security and stability through this software for Mac.
Once you follow the above steps thoroughly, you will automatically get done with your bounced check concerns. Do not let yourself be confused with the thought of QuickBooks software being complicated. QuickBook Premier is one of the best accounting software and comes with great features. The bounce check recording issues will also be solved easily if you follow all the steps mentioned above.