How do I handle a bounced check issued from my company?

When a check you issued bounces, how you handle it in QuickBooks Online depends on whether the bank paid the check (incurring a fee) or returned the check unpaid.

If the bank paid the check but charged a fee

If the funds cleared but your bank charged you a Non-Sufficient Funds (NSF) fee, keep the original check recorded as is. You only need to record the bank fee as an expense.

1. Select + New.
2. Select Expense.
3. In the Payment account field, select the bank account affected by the fee.
4. Enter the Date the bank charged the fee.
5. In the Ref no. field, enter a note such as “Bounced Check Charge.”
6. In the Category field, select your usual Bank Charges expense account (consult your accountant if you are unsure).
7. Enter the Amount of the fee.
8. Select Save and close.

If the check was returned unpaid

If the bank did not pay the check and returned it, you need to void the original check and reissue it.

1. Select Settings (the gear icon) and then Chart of Accounts.
2. Locate the bank account the check was drawn from and select View register (or Account history).
3. Find the original check in the list.
4. Select the check to open it.
5. Select More at the bottom of the transaction and then Void.
6. Select Confirm.
7. If the bank charged you an NSF fee for the returned check, record that fee by following the steps in the section above.
8. Record the new check to the vendor by selecting + New > Check.