QuickBooks Tip #6 - Handling Return Checks From Customers

QuickBooks Tip #6

Most companies will eventually deal with the customer who bounces a check.   To make your reconciliation an easier task, we suggest the following procedure:

How to handle return checks from customers.

• Create an Other Charge Item called Bounced Check or NSF. In the description field I usually say something like "Your check # has been returned, please remit replacement payment immediately." For the Account enter your Checking account.

• Now, Invoice the customer for the Item Bounced Check and enter in the check #, Invoice # and other information about the check. This takes the money out of your checking account and puts it back on the customer A/R

• I usually also create an Other Charge Item called NSF Fee and charge my customer for any service charge I received from my bank. You can put this to your account for Bank Service Charges to offset what your bank charged you or to a Misc. Income account.

• When the customer sends a replacement check, Receive Payment as usual and make your deposit.

Don't Delete!


Despite the temptation, you really don't want to delete the returned check from the original deposit.

For more QuickBooks Tips, explore http://bit.ly/TipSeries. If you have any questions about this tip or any other tips, please email Marketing@CoverRossiter.com or call 302-656-6632. Visit our website at www.CoverRossiter.com/ for more information about our firm and its services.

QuickBooks Tip #5 - Safely Merging the "Accountant's Copy"

QuickBooks Tip #5

So your accountant provided you with an “Accountant's Copy” and asked you to merge the file with your current Quickbooks file?   To make sure that you don’t lose anything in the process, Quickbooks highly recommends you make a backup copy first.

Merging Your Accountant's Changes:

You should make a backup of your company data before attempting to merge the accountant's changes.

• If the accountant's changes are on a 3.5” disk or usb drive, insert the disk or drive into your computer.
• Open the master company file. Then from the "File" menu, choose "Accountant's Review", and then choose "Import Accountant's Changes".
• When the message about backing up your data appears, click "OK".
• Backing up is a safeguard in case anything goes wrong when you try to merge the changes.
• Enter the filename and location for the backup file and click "Back Up". When the "Import Changes from Accountant's Copy" window appears, select the drive that contains the file and click "Open".

For more QuickBooks Tips, explore http://bit.ly/TipSeries. If you have any questions about this tip or any other tips, please email Marketing@CoverRossiter.com or call 302-656-6632. Visit our website at www.CoverRossiter.com/ for more information about our firm and its services.

QuickBooks Tip #4 - Downloading Bank Statements

Did you know that you can download your bank account transactions on a weekly basis directly into the Quickbooks software?   This time-saving feature is available as a free service through most large banks.  

Check that you have what you need.

• Access to the internet from QuickBooks.
• Banking account that offers online service for QuickBooks

Activate online services with your financial institution.

• You will receive login information from your financial institution.

Add the online service to QuickBooks.

• Banking.
• Online Banking.
• Setup account for online services.
• Follow the instructions in the wizard to complete the setup.

For more QuickBooks Tips, explore http://bit.ly/TipSeries. If you have any questions about this tip or any other tips, please email Marketing@CoverRossiter.com or call 302-656-6632. Visit our website at www.CoverRossiter.com/ for more information about our firm and its services.