With the sudden rise in technology, most tasks that require an individual to leave the comforts of their home can now require just a click on your smartphone.
If unaware, you could create and add checks to your accounting software online (we will discuss QuickBooks). You won’t even have to leave the comfy seat you are sitting in, slowly sipping away your coffee.
But to understand how you can do it, I must briefly inform you about QuickBooks and its services.
What is QuickBooks?
QuickBooks is cloud-based accounting software that utilizes the internet. This accounting software caters to the needs of business owners who wish to digitize their financial systems. QuickBooks includes a payroll system that automatically completes payroll according to the directions set by the business owner.
They could also get all their accounting needs fulfilled through this platform that Intuit creates.
QuickBooks is relatively easy to use, and once an individual gets the hang of it, all the tasks of the accounting department get very easy to do.
It also has an add-on program allowing users to modify the software according to their needs. They can set it up per their requirement, which would eventually help them create a solid yet sustainable system.
With other checks, there is also an option to add NSF checks to QuickBooks.
What Are NSF Checks?
NSF checks stand for non-sufficient fund checks. These checks potentially mean there isn’t enough money in an individual’s account to cash this check. Financial institutions also refer to these as dishonored checks because the bank cannot honor the payment due to a lack of funds. When a payor doesn’t have an adequate amount of available funds, the check is bounced or considered NSF, and the individual must pay an NSF (non-sufficient fund) fee. Accountants must add this fee to the general ledger.
An NSF check does not affect an account’s credit score, though.
You should then charge the fee to the customer whose account had insufficient funds.
There is a proper method of recording all the checks that bounce back due to insufficient funds.
Following is an explanation of how to record these checks online on QuickBooks.
How-To Add NSF Checks to QuickBooks Online
Create Two Service Items
In this step, the user must create service items corresponding to the bounced check and the fee.
Select the gear icon and then choose products and services
Click on new, then select the service item
Add the name as bounced check, select the bank account as well
In the same way, create a second item and name it jumped check fee
Select the save option and then close the tab
Formulate The Invoice
Now that you’ve created the service items, it is time to make an invoice.
Select New ⨁.
Click on customers and then go to invoices.
Add the date of the bounced check, then choose the item you created
Select the returned check fee item
Enter the fee to
Select Save and leave the tab
Make a Record of the Bank Services Charges
Again, Select New ⨁.
Go to Vendors, and from there, choose Expense.
Select the bank and add the date the check bounced
Add the NSF fee, then select the expense account
Add the fee the bank charges for the services
Select save
Make A Record of Payment from the Customer
Select New ⨁.
Go to the customers’ section and choose the option of receiving payment
Select the customer and add the mode of payment
Then, enter the amount received
Select the invoice created
Select Save
QuickBooks is one of the most accessible platforms for accounting needs. Adding and recording checks is relatively easy. Just follow the method mentioned above, and you will quickly find your way around the software.
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