welcome to the fit small business
QuickBooks Online training course in
this lesson we're going to cover how to
handle bounced checks from customers and
quickbooks online to follow along with
me login to your quickbooks online
account now or click the link below for
a free 30-day trial of quickbooks online
you can also click this link to access
our full quickbooks online course and
other helpful resources let's get
started when you deposit a check that
you received from a customer and they
are not enough funds in their bank
account the check is returned to your
bank due to non sufficient funds to pay
the check sometimes it can be a real
hassle because you are penalized by your
bank who will charge you a fee for the
bounced check in addition you've got to
contact your customer and either have
them write you another check or provide
another form of payment in this lesson
we'll walk through how to correctly
handle bounced checks when a customer's
cheque bounces it impacts several things
your bank account is reduced by the
amount of the check your accounts
receivable will increase since the
customers payment did not go through and
the bank charges you a fee for the
non-sufficient funds in an effort to
avoid these fees and ensure that your
financial statements are accurate we
will walk through step by step in this
lesson to show you how to record a
transaction in QuickBooks for each of
these from the home page click on the
plus sign and go ahead and select check
right below the vendors column the write
check window will display and in this
screen we will go ahead and enter the
information for the customer that
bounced a check and this first field from
the drop-down you want to go ahead and
select the customer in the next field
you want to go ahead and select the bank
account where the bank where the check
bounced for the payment date we want to
go ahead and enter the date the check
was returned in the account field we
want to go ahead and select the accounts
receivable account
in the description field we'll go ahead
and enter the bounced check information
so bounce check and then the check
number will suffice here and then we'll
go ahead and enter the amount of the
bounced check do not include the NSF fee
charged by the bank here we will enter
that in the next step and the check
number field go ahead and put NSF so
remove the check mark for print later
and type in SF in the check number
fields once you have completed all the
fields we'll go ahead and save and close
this last but not least if you want to
add some additional information in this
memo field you can do that next thing we
want to do is record the NSF fee that
the bank is going to charge you from
the home page go ahead and click on the
plus sign at the top below the vendors
column we want to select expense the
expense window will display and we'll go
ahead and complete these fields so in
this first field the payee will be the
bank that is charging the fee in the
next field we want to go ahead and
select again the bank account where the
check bounced
and the payment date will be the date
that the check was returned and the
reference number field over to the right
go ahead and enter a bank NSF fee in the
account field you want to select an
account that is called a bank fees if
you don't have a bank charges or a bank
fees account you can set one up in this
screen by going ahead and scrolling up
to the top and clicking on add account
or add new in the description you'll go
ahead and enter NSF fee and then enter
the amount that the bank charges you
here once all the fields are completed
we'll go ahead and save and close this
and then the final step that we want to
do is we want to go ahead and build a
customer for the NSF fee now note that
this step is optional however I
recommend that you build your customer
for the NSF
see that you were charged by the bank
some businesses may charge a little bit
more for the inconvenience but that's
totally up to you to build a customer
for the NSF fee from the homepage we'll
go ahead and click on the plus sign at
the top and below the customers column
go ahead and select invoice and the
create invoice window will display and
we'll go ahead and complete these fields
to build our customer so we're gonna
build our customer Bridget O'Brien and
I'd recommend that the terms are due
upon receipt you don't want to give
additional terms for something like this
for products and services you want to
set up an item on your items list call
customer NSF fee so from the drop-down
you can do this by clicking on the add
new option here and setting up customer
NSF fee and the description you want to
be sure that you provide a description
so the customer is aware of what you are
charging them so something like fee
charge for return check number I will be
sufficient here and then as far as the
amount at a minimum as I said earlier
you can charge with the bank charge you or
you can charge a little bit more it's
it's definitely your call on this I
would also in the message box in the
lower left hand corner put a descriptive
message here that lets the customer know
they need to provide you with a
replacement check and they also need to
remit payment for this NSF fee
once you have completed all the fields
we can go ahead and save and close this
invoice to gain a better understanding
of how recording bounce checks impacts
your accounts and your financial
statements click this link to walk
through the step-by-step written lesson
that wraps up the lesson on how to
handle bounced checks from customers and
QuickBooks online to access our full
QuickBooks Online course or any of the
other lessons in this series click this
link you can also find a link below this
video for a free 30-day trial of
QuickBooks Online if you have feedback
about this course or if you have any
questions please leave a comment below
also don't forget to subscribe