Correctly voiding checks in QuickBooks On-line retains your bookkeeping information correct. This, in flip, protects your online business from fraud and helps you guarantee your monetary statements are at all times appropriate.
Though deleting a examine accomplishes the identical factor in your monetary statements as voiding one does, deleting checks additionally compromises your recordkeeping and opens the door for potential errors. Deleting checks additionally makes it tougher so that you can detect fraud in your account. The one time a examine ought to be deleted is that if a reproduction entry was made accidentally.
The method to void a examine in QuickBooks On-line is simple and simple. It solely will get difficult when it’s a must to void a examine written in a previous accounting 12 months. When you’re hesitant to sort out voiding a examine written in a earlier 12 months by yourself, attain out to a QuickBooks ProAdvisor or a bookkeeper or accountant well-versed in QuickBooks On-line. They are going to be capable of stroll you thru correctly voiding your particular transaction so your bookkeeping stays correct.
What it means to void a examine
Once you void a paper examine, it implies that specific examine is not legitimate for fee functions. This is applicable to each the bodily examine itself and in addition the examine quantity related to the examine.
Merely writing “VOID” throughout a examine offers you some safety in opposition to fraud. Nevertheless, subtle fraudsters can nonetheless use the data on the examine to create pretend checks in your account or to arrange digital funds and transfers. Because of this, you have to be very cautious about defending checks you could have voided. The easiest way to guard these checks is to both shred them or file them securely.
Correctly voiding and defending paper checks is just one step of the method, although. It’s worthwhile to hold a report of the voided examine inside your accounting system that can assist you catch any try to make use of that examine quantity once more. Keep in mind, once you void a examine, the bodily examine itself and the examine quantity related to the examine are each rendered invalid.
Once you void a examine in QuickBooks On-line, you may simply see if that examine is introduced for fee once more. And fast detection is essential to guard your account from fraudulent exercise.
Voiding vs. deleting
From an accounting perspective, there’s no actual distinction between voiding and deleting a examine in QuickBooks On-line. Voiding and deleting accomplish the identical factor: Each actions take away the impression of the transaction in your monetary statements. From a recordkeeping perspective, it’s significantly better to void a examine than to delete it.
For instance, let’s say you processed a $150 fee utilizing examine #1223 to the corporate that cleans your workplace. Once you current the fee to the top of the cleansing crew, she delivers some excellent news: You’ve been prolonged a loyalty low cost, and your service now solely prices $135/week.
You narrow a brand new examine (#1224) for $135 and report it in QuickBooks. However now it’s a must to get the $150 fee off your books.
Once you recorded the unique fee utilizing the Verify display screen in QuickBooks, the next entry occurred “behind the scenes”:
Debit: Cleansing Expense $150
Credit score: Checking Account $150
Verify #1223 was additionally added to your Verify Register.
When you delete the examine, three issues will occur:
The unique debit and credit score for $150 can be worn out of your accounting information, and your revenue and loss assertion will present solely the brand new fee for $135.
Your Verify Register can even be up to date to point out the proper obtainable stability in your checking account.
These two issues are effective. In actual fact, that is precisely the identical factor that will occur in the event you voided the examine.
Nevertheless, one other factor will occur and that is the place you could possibly have an issue:
Deleting the examine additionally means there isn’t any longer any report of it in your accounting system.
Your Verify Register will now leap from examine #1222 to #1224. When you attempt to report one other examine utilizing #1223, you gained’t obtain a reproduction examine quantity warning. This implies you run the danger of making future checks utilizing incorrect examine numbers. Now you could have a possible nightmare throughout reconciliation since you may have a number of checks in your system with the identical examine quantity. It additionally means somebody may doubtlessly create a solid examine utilizing #1223, current it for fee and you would be much less prone to catch the fraud.
When you void the examine as a substitute of deleting it, you keep a report of examine #1223 in your Verify Register. It now exhibits $0 (and the debit and credit score are zeroed out as properly, as a substitute of merely disappearing). This allows you to hold an correct report of all of your transactions as a substitute of getting to recollect what really occurred with examine #1223.
Possible the one time a examine ought to be deleted is in the event you by chance duplicate an entry — like in the event you forgot you entered examine #1224 for $135 and enter it once more. When you void a examine, really use the options in QuickBooks On-line to correctly void the examine (there’s one exception to utilizing the void options, which we’ll cowl later).
The right way to void a examine in QuickBooks On-line
It’s simple to void a examine in QuickBooks On-line. Not solely does voiding checks hold your revenue and loss assertion and Verify Register correct, however in the event you use QuickBooks On-line’s accounts payable options correctly voiding checks ensures your A/P information are at all times correct, too.
Void a examine already recorded
1. Find the examine you wish to void. The best approach to do that is by going to the Verify Register. From the Dashboard, both (a) click on on Banking within the left-hand toolbar or (b) click on on the checking account below Financial institution Accounts on the best facet of the display screen.
Click on on “Go to Register” on the following display screen.
Seek for the examine you wish to void, utilizing the filters if wanted:
2. Click on into the examine line within the Register, then click on the Edit button.
3. Click on Extra on the backside of the following display screen, then choose Void.
4. Click on the “Sure” button on the dialog field. The warning lets you understand the examine was used to pay a invoice. Once you click on Sure, the fee is voided, and the invoice is up to date to point out as open and payable in your A/P reviews.
5. Click on the “OK” button.
6. Assessment your Verify Register. You’ll now see the examine exhibits $0 and voided.
Void a examine not beforehand entered
1. Click on the “New” button on the Dashboard, then choose Verify below Distributors.
2. Create the examine as traditional. Fill within the (a) payee identify, (b) date the examine was written and (c) examine quantity. Be sure you’ve chosen the proper (d) checking account. The (e) class isn’t terribly necessary, but it surely can’t be left clean. Lastly, enter an (f) quantity of $0.00 and notice within the (g) description field that it’s a voided examine. Lastly, click on the (h) “Save and Shut” button.
3. Assessment your Verify Register. You’ll now see the examine exhibits $0 and voided.
Even in the event you voided the examine as a result of a vendor or buyer required it to arrange digital funds for your online business, we suggest following this course of to void the examine quantity in QuickBooks On-line.
Void a examine from a previous accounting interval
There’s an exception to utilizing the QuickBooks On-line options outlined above to void checks. Once you uncover a examine must be voided from a previous accounting interval, you will want to comply with a unique process to maintain your information correct. This revised course of isn’t needed if the examine to be voided was written in a earlier month. Nevertheless, if it was written in a previous 12 months, and if the books for that 12 months have been closed, it would be best to use this amended course of.
Utilizing this amended course of will stop modifications to your closed books whereas nonetheless retaining your bookkeeping correct.
1. Create a deposit to offset the examine to be voided. Click on the “New” button from the dashboard, then choose Financial institution Deposit below Different.
2. Fill out the Financial institution Deposit type as traditional. Be sure you choose the proper (a) checking account and set the (b) date to at least one within the present accounting 12 months. Use both 1/1 or 12/31 of the present accounting 12 months to make it simpler to seek out this adjusting entry. Within the (c) “obtained from” subject, enter the seller’s identify to whom the examine was written. Use the identical (d) account you used on the examine you’re voiding (you may create a multi-line deposit if the unique examine was cut up over a number of chart of accounts classes), and within the (e) description enter “Entry to void examine #(examine quantity) from prior interval.” You possibly can go away the “Fee Technique” and “Ref. No.” fields clean. Lastly, enter the (f) quantity of the unique examine and click on (g) save.
3. Mark each the unique examine and the deposit you simply created as reconciled. You possibly can both do that throughout your subsequent reconciliation, or you may mark the transactions reconciled within the examine register.
If the voided examine was used to pay a invoice that’s nonetheless due, you will want to create a brand new invoice, dated within the present accounting 12 months (use 1/1 of the present 12 months to make the adjustment simpler to seek out).
Conserving reconciliations correct
When you void a examine that has beforehand been reconciled, you will want to undo the reconciliation after which reconcile the account once more, this time choosing the proper transaction on your reconciliation (you’ll by no means void a reconciled examine.)
Nevertheless, voided checks will hold popping up in your financial institution reconciliation display screen except they’re marked as reconciled. In case you have a number of voided checks, it will make your reconciliation display screen cluttered and will probably result in errors.
Both mark your voided checks as reconciled within the examine register or choose these $0 entries throughout your subsequent reconciliation.
A model of this text was first revealed on Fundera, a subsidiary of NerdWallet.