Recording a Bounced Check in Quickbooks

15 Jul Recording a Bounced Check in Quickbooks

Hopefully you will never need to record a bounced check in your accounting.  The reality is that most business owners will need to deal with this unpleasant circumstance.  Here is what you need to know for when it happens to you.

• You can charge a bounced check fee.  The amount of that fee is regulated by your state.  To see what your state’s maximum fee is check out Merchant Source. COM.
• To record  the returned check in your Quickbooks

  • Go to write checks
  • Write a check for the amount of the check plus any fees
  • Post the check to accounts receivable
  • Add the name of the person who bounced the check in the customer field or select it from the names you already have.
  • This amount will now appear on a AR report as well as in the receive payment window.

• If the person who bounces the check doesn’t make good you have several options.  Each state has it’s own rules.  Massachusetts has some of the toughest rules.  In most cases you can press criminal charges.