Recording Returned or Bounced Check from a Client

Lately I have been getting questions on how to record a bounced check from a client in QuickBooks. The first thing you have to know is how did you record the check the first time.

If the returned check was one that was applied to Accounts Receivable do the following:
1. Open the check register that the money came out of.
2. Type the date of the returned check
3. No check number
4. Enter the amount of the returned check
5. Click the Split button
6.For the Account choose Accounts Receivable
7. Enter a memo "returned check" in the memo column
8. Choose the client in the Customer column that it was returned against.

By doing this you will put the money back into the clients accounts receivable.

If you just deposited the money to begin with and applied to something like legal fees do the following:
1. Open the check register that the money came out of.
2. Type the date of the returned check
3. No check number
4. Enter the amount of the returned check.
5. Click the split button.
6.For the Account choose Legal Fees or whatever account you used when you first deposited it.
7. Enter a memo returned check
8. Choose the client that it was returned against.

This will then reduce your income for the bounced check.

Hope this helps out. If you have any questions you are welcome to contact me at my office. (904) 284-4480.

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Setting Up Users and Passwords in QuickBooks

QuickBooks allows you to setup Users & Passwords. This allows you to secure your data. In setting up users you can also assign rights to the user. For example, you may have someone who helps you with your billing and receiving payments. You would set them up to only be able to see the accounts receivable information.
To setup users and passwords:1. Click on Company from the Main Menu.
2. Click on Setup Users and Passwords.
3. Click on Set up Users.

The User List box will appear. This lists all of the users that are currently set up. The Admin account is set up by default. You may want to set a password for the Admin account, click on Edit User. Enter the new password and enter it again in the confirm password box. Select a challenge questions, and input the answer. When you are finished, click on Next. Click on Finish to complete the process.
Now we can add Users to your QuickBooks file.1. Click on Add User. Type in the name they will use to log in with and a password. Click Next.

2. Choose Selected Areas of QuickBooks.

3. Since Julie is going to be helping with billing and receiving payments we will want to give her full access on the Sales and Accounts Receivable window, choose Full Access and click Next.

4. Go through the additional windows and choose the options that fit your user.

5. Once you are done you will see a summary of the choices you picked. You can now review them and then click Finish. It is a good idea to log off and then log back on as them so you can test it out and make sure you have selected the right choices.


If you need help with learning more about QuickBooks I offer online consulting services. To find out more visit our Quickbooks Consulting service page at attorneystechnology.com.