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Record a Bounced Cheque in QuickBooks Online

If you have experienced the agony of a bounced cheque from a client, you must be knowing all about it. A bounced cheque is something that cannot be processed by the bank on account of lack of funds. Since QuickBooks lacks a bounced cheque feature, the particular process calls for multiple steps.

What is a bounced cheque in QuickBooks?

In QuickBooks, a bounced cheque is something that is received from a customer but is sent back by the bank due to lack of funds.

A bounced check has a plethora of impact on the accounting records and hence calls for various adjustments. It is quite likely that your bank will ask for a fee when there is a bounced cheque, which most businesses attempt to pass it on to the customers.

Why is it important to record a bounced cheque in QuickBooks?

Whenever a cheque bounces, the specific bank balance displayed in QuickBooks Online is always overstated, since the particular bounced cheque is displayed as a deposit.

It is crucial to adjust the specific QuickBooks bank balance in order to get the right amount displayed. Also, you must highlight the fact that the client still owes you for the real invoice along with any fee levied for the returned cheques.

Recording a particular bounced cheque is a complex process and needs numerous steps. There are many ways to record and register a bounced cheque but experts recommend that the most efficient way is to maintain a paper trail and make reconciling your QB banking very simple and less complicated.

How to record a bounced Cheque in QuickBooks Online?

  1. In your QuickBooks account, press the “Receive Payments” tab on the homepage
  2. Select the “Previous” button and stop when you find the transaction related to the bounced cheque
  3. Select the “Bounced Check” button and enter the amount the bank charged from you for the bounced cheque in the particular “Bank Fee Charged” field.
  4. Choose the “Charge Customer for Fee” option, if you wish to apply a service charge to the customer and then add the fee you wish to charge.
  5. Select Save and Close. The bank’s fee along with the customer fee is added together. Then an invoice is produced by QuickBooks for the total charge.

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