Have you been facing certain lost check fees and cash flow problems due to certain suppliers who wait around 3 months to cash out their checks?
If yes, then don’t worry. This is one of the most frequent erupting problems of all time, and most companies struggle to deal with it.
This error is documented in the report called Uncleared transaction report for QuickBooks online. It reveals all the outstanding and overdue checks and all those specific transactions which were not cleared by the bank.
Note: Uncleared bank transaction report is not one of the standard reports of QuickBooks. You need to prepare it with the help of a balance sheet report, which is also called as a statement of financial position report for all non-profit enterprises.
Before we begin, get a proper understanding of what a Cleared and Uncleared Transaction is:
- Cleared Transactions: Such transactions that are entered in your accounting books are cleared by the bank.
- Uncleared Transactions: Such transactions are entries in the book of accounts that are not cleared by the bank. It also states that a bank is not aware of these transactions.
What is the reason for uncleared QuickBooks checks?
There are many reasons that can be attributed to the uncleared checks for QuickBooks, some of which include:
- The Payee for the uncleared QuickBooks checks moved to a different address, expired, or misplaced the check.
- There is an item that is uncleared for any product/service that was never provided or delivered.
- Cash balance distorted in the checking account.
- Bank made an error in clearing the payee check, debits, cleared checks, deposit items, etc.
- Displaying wrong net profit or loss for the business
How to clear all the uncleared transactions in your QuickBooks account?
If you do not wish to have the uncleared transactions in your statements, then the best step is to cancel the same. To void/cancel an entry, please adhere to the steps mentioned below:
- In the QuickBooks dashboard, select the transactions tab.
- In the drop-down section, select the sales entries. A new window will open up for all the sales transactions for that particular day.
- Locate the uncleared transactions, which are required to be avoided, and then select them. A detailed view of the entry will reveal.
- Go down to the bottom of the screen and select the More tab.
- The options will be provided. Select the void option.
- Select Yes to confirm the specific entry.
Once the transaction is voided, all the uncleared entries can be removed successfully.