VOIDED CHECK

When you need to void a check, there are several things to consider. Here a few tips to ensure it is done properly.

CHECK IN THE CURRENT PERIOD
If the check is in the current period, simply change the amount to zero. Leave everything else alone. In QuickBooks you will go up to the top of the screen and choose VOID.

CHECK IN THE PRIOR YEAR
If the check is in a prior year, you must be careful. It can create a mess with your balance sheet that could tie back to your tax return. We suggest making a deposit entry for the voided check. In the memo write Void Check #, original date and who it was to.

CHOOSE THE RIGHT CATEGORY
In the account section you can either use the original expense account as in prior period or write off. Consult with your CPA or tax preparer what account they prefer you use to clear your old outstanding voided checks.

PAYROLL CHECK
If this check is a payroll check, and all payroll tax returns have been filed, voiding this check can have a huge effect on your books. The best way to handle this is to NOT void the check and to reprint it using a new check number. Ensure that the employee cashes the check. If the employee cannot be found, consult with your CPA or tax preparer how to proceed and if the above method would be appropriate to write it off.