It is unavoidable that you will have to void a check at some point. There are various reasons why this might occur when a check is duplicated, lost, and rebuilt without being appropriately rectified. When bank reconciliations are completed, this is an excellent moment to evaluate outstanding checks for problems that need to be fixed.
There are various factors to consider before voiding a check. The following tips will help you get it right.
CHECK THE CURRENT TIME
Simply set the amount to zero if the check is from the current period. Everything else can wait.
CHECK THE PREVIOUS YEAR
You must use caution if the check is from a previous year. It may wreak havoc on your balance sheet, which can then be traced back to your tax return. We recommend that you make a deposit entry for the amount of the voided check. Fill up the blanks with the Void Check #, who it was issued to, and the original date.
SELECT THE CORRECT CATEGORY
In the account area, you can utilize the same expenditure account as in the previous period or write it off. Consult your CPA or tax preparer about which account to utilize to wipe off your old outstanding voided checks.
WHAT SHOULD I DO WITH A PAYROLL CHECK?
If this is a payroll check and all payroll tax returns have been submitted, voiding it might have a significant impact on your books. The best course of action is to NOT invalidate the check and reissue it with a new check number. You may void a check in Quickbooks ,Make certain that the employee cashes the cheque. If the employee cannot be located, talk with your CPA or tax preparer on how to proceed and whether the preceding way of writing it off is suitable.
QUICKBOOKS DESKTOP TOOLS
When you utilize the Void tool in QuickBooks Desktop by locating the check and choosing Edit, Void Check, the amount is changed to zero, which is acceptable if it is in the current period. If you do this during a closed time, you will receive the following pop-up message:
In this instance, you can click the "Yes" button (Recommended). QuickBooks will invalidate the cheque and record the necessary journal entries. If you wish to control this phase, perform the methods outlined above in "Check in the previous year."
ONLINE QUICKBOOKS TOOLS
Since the data is coming from bank feeds and may be linked to bank reconciliation, you should always be cautious when voiding in QBO. Whether the check has been reconciled or not, this pop-up notification will appear when you open a transaction and select MORE to pick invalid.
Also Read: How to Resolve Quickbooks Error H101?
If you say yes, the money will be zeroed out. If the error is linked to bank reconciliation, you will need to undo and rerun the bank reconciliations to complete the remedy.
If you discover that you need assistance cleaning up your checks and aren't comfortable doing it on your own, go here to request a consultation with one of our staff members.
There are various factors to consider before voiding a check. The following tips will help you get it right.
CHECK THE CURRENT TIME
Simply set the amount to zero if the check is from the current period. Everything else can wait.
CHECK THE PREVIOUS YEAR
You must use caution if the check is from a previous year. It may wreak havoc on your balance sheet, which can then be traced back to your tax return. We recommend that you make a deposit entry for the amount of the voided check. Fill up the blanks with the Void Check #, who it was issued to, and the original date.
SELECT THE CORRECT CATEGORY
In the account area, you can utilize the same expenditure account as in the previous period or write it off. Consult your CPA or tax preparer about which account to utilize to wipe off your old outstanding voided checks.
WHAT SHOULD I DO WITH A PAYROLL CHECK?
If this is a payroll check and all payroll tax returns have been submitted, voiding it might have a significant impact on your books. The best course of action is to NOT invalidate the check and reissue it with a new check number. You may void a check in Quickbooks ,Make certain that the employee cashes the cheque. If the employee cannot be located, talk with your CPA or tax preparer on how to proceed and whether the preceding way of writing it off is suitable.
QUICKBOOKS DESKTOP TOOLS
When you utilize the Void tool in QuickBooks Desktop by locating the check and choosing Edit, Void Check, the amount is changed to zero, which is acceptable if it is in the current period. If you do this during a closed time, you will receive the following pop-up message:
In this instance, you can click the "Yes" button (Recommended). QuickBooks will invalidate the cheque and record the necessary journal entries. If you wish to control this phase, perform the methods outlined above in "Check in the previous year."
ONLINE QUICKBOOKS TOOLS
Since the data is coming from bank feeds and may be linked to bank reconciliation, you should always be cautious when voiding in QBO. Whether the check has been reconciled or not, this pop-up notification will appear when you open a transaction and select MORE to pick invalid.
Also Read: How to Resolve Quickbooks Error H101?
If you say yes, the money will be zeroed out. If the error is linked to bank reconciliation, you will need to undo and rerun the bank reconciliations to complete the remedy.
If you discover that you need assistance cleaning up your checks and aren't comfortable doing it on your own, go here to request a consultation with one of our staff members.