Many business owners prefer to write checks rather than deal in cash. It’s a more secure method of funds transfers and theoretically allows you to keep better track of your expenses and income, especially if you record each check payment in software like QuickBooks . But even checks can be compromised from time to time. Physical checks can be stolen, checks can be forged, and occasionally business owners may write incorrect checks that have too much or too little money written on them. In these cases and more, it’s helpful to know how to void checks in your books. When you void a check, you write it off as invalid and prevent it from being used to receive money. While you can do this physically on any check you own, you also need to know how to market checks entered in QuickBooks as “void”. Doing so will help you balance your books and prevent QuickBooks from counting voided checks as real transactions. Not sure how to void checks in QuickBooks or how to navigate through the software’s many menus? We can help you learn how to void checks using QuickBooks in detail.
Sometimes you write a check in the wrong amount, send a check to the wrong person, or lose a check altogether. In these cases, it can be helpful to “void” a check so it no longer counts as valid. Physically voided checks will have the word “void” written across their fronts. But you can also void checks from your accounting software like QuickBooks. Why void a check at all? Voiding a check effectively disables it and prevents it from being used as a blank check or from a check with written amounts being cashed. In other words, it prevents the check’s transaction from taking place if you need to make a correction or previously made a mistake. Voiding your checks in software, on the other hand, is basically good accounting . It prevents your software from counting the money in the checks as valid and, thus, stops errors from compounding over time. In certain cases, voiding checks through QuickBooks can even prevent them from going through if someone tries to cash them.
Aside from preventing someone from misusing company funds or stealing from you, voided checks can be useful tools for a variety of reasons. Remember, even voided checks have key information about your business’ bank accounts, such as the name and location of the bank and the bank's routing and account numbers. Possible uses for voided checks include:
All in all, knowing how to void checks is an important skill for any business owner or accountant.
What if you’ve sent one or more checks but have recorded those checks in QuickBooks? Fortunately, you can void checks using QuickBooks Online or Desktop . There are different processes depending on the circumstances of your check writing. The basic voiding process for checks in QuickBooks is as follows:
That’s it! QuickBooks makes this easy as Intuit knows that small business owners oftentimes have to make corrections or ensure that their money isn’t lost due to theft.
QuickBooks provides another way to void checks without having to open an individual transaction.
Both of these processes should work for both QuickBooks Online and Desktop.
If you’ve already issued a check to another person, like a client or partner, but the check hasn't yet been cashed, you can still void it and prevent the total in the check from messing with your other accounting numbers. This will also prevent the check from being included in reconciliation. Follow the steps below to void checks that have been issued but not cashed:
What if the check was included in previous bank account reconciliations? In this case, you’ll have to undo the reconciliation and delete the transaction manually. Only after doing this can you redo the reconciliation process and fix your accounts. Naturally, this can be quite time-consuming, so it’s a good idea to decide whether you want to void any checks before reconciling every month or quarter. No matter how you void your checks in QuickBooks, remember that the checks don’t fully count as void unless you physically write "VOID" in large letters across the check's front. No business will accept a check that has been written on in this way. If you can’t get a hold of the physical check (for example, if an employee has stolen money through checks and is not willing to return them), then call your bank directly and tell them to put a stop order on the check(s) in question. Give them the exact check numbers (each check from your bank will have a number in the corner) so they can ignore withdrawal requests from those specific checks.
No. Once a check has been cashed, the transaction is finished and the person who cashed the check either has the money physically or has deposited the funds into their account. In certain rare circumstances, you may be able to get funds back if the total from the check was deposited into a bank account rather than withdrawn as cash. But this is very difficult and nearly impossible. Your best bet to avoid losing money to theft or mistakes is to void checks before they are cashed at all. If it’s an emergency, you can contact your bank (or the bank under which the check was issued) and order a stop payment. This will put a freeze on the check’s funds and prevents the recipient from cashing the check fully until you are satisfied. Note that this isn’t the same thing as voiding a check, but it will prevent the funds from being taken out of your account if necessary.
As you can see, QuickBooks makes it simple to void checks whenever it’s necessary. Small businesses may find this procedure useful if they accidentally issue a check for an incorrect amount to a client or partner or if an employee tries to steal checks from the company and cash them after writing themselves various checks. However, the ability to void checks is still secondary to practicing good check discipline and managing your finances carefully. With luck, you’ll only rarely need to void checks in the course of your business operations. Need more advice about how to use QuickBooks or other accounting software to their maximum effect? Or do you need assistance getting the loans or financial space your business needs for success? Seek Capital can help – check out our site today for guides, loans, and more! Sources: What Is a Voided Check and When to Use One | US News and World How to void or delete a check in QuickBooks Online | QuickBooks How to void a check already issued | QuickBooks