How to Record Returned Check in QuickBooks Online
Managing finances can be a daunting task, especially for small businesses. QuickBooks Online is a popular accounting software that helps businesses streamline their financial processes. One common issue that businesses face is handling returned checks. In this article, we will guide you on how to record a returned check in QuickBooks Online efficiently.
Step 1: Access the Banking Section
To start recording a returned check, you need to access the banking section in QuickBooks Online. Log in to your account and navigate to the “Banking” tab. This will display a list of all your bank accounts.
Step 2: Select the Bank Account
From the list of bank accounts, select the account from which the check was issued. This will open a new window showing the transactions for that specific account.
Step 3: Find the Issued Check
Scroll through the transactions to find the issued check that has been returned. Once you locate the check, click on it to view the details.
Step 4: Create a Journal Entry
To record the returned check, you need to create a journal entry. Click on the “Create Journal Entry” button, which is usually located at the top of the transaction list.
Step 5: Enter the Details
In the journal entry form, you will need to enter the following details:
– Date: Enter the date on which the check was returned.
– Description: Provide a brief description of the transaction, such as “Returned Check for [Amount]”.
– Account: Select the appropriate account to record the returned check. This could be an expense account like “Bank Fees” or “Returned Checks.”
– Debit: Enter the amount of the returned check as a debit.
– Credit: Leave the credit field blank, as this is an expense account.
Step 6: Save and Close
After entering the details, review the journal entry to ensure accuracy. Once you are satisfied, click the “Save and Close” button to record the returned check in QuickBooks Online.
Step 7: Reconcile the Bank Account
Finally, it’s essential to reconcile your bank account to reflect the returned check. Go back to the banking section and select the bank account. Click on “Reconcile” and follow the prompts to match the transactions and mark the returned check as cleared.
By following these steps, you can efficiently record a returned check in QuickBooks Online. This will help you maintain accurate financial records and ensure that your business’s financial statements are up to date.
