How to Clear Out Outstanding Checks in Quickbooks

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Clearing an outstanding check, without a valid reason can cause your account to be overdrawn or not reconcile. You can clear an outstanding check by voiding it. According to the uniform commercial code, article 4, banks do not have to pay checks more than six months old. However, if they choose to, they can. Let your communication with the check payee be your guide to decide if you should void the check. If they lost the check or have decided they do not want your money, void the check. If they plan to deposit it, do not void the check.

  • Open QuickBooks and click the "Check Register" icon in the "Banking" section in the lower-right corner of the "Home" page to open the "Use Register" dialog box.

  • Click the pull-down button and select the account that contains the check you want to void. Click the "OK" button to open the check register.

  • Click the "Go to..." button in the upper-left corner of the check register window to open the "Go To" dialog box. Following on-screen instructions, enter your search parameters and click next. You can also find the check by date or check number by scrolling through the register.

  • Right-click on the check transaction and select "Void Check" from the submenu this zeros out the check and clears it. Press the "Enter" key to open the "Recording Transaction" dialog box. Select "Yes" to record the changes.

Tips & Warnings

  • If the check is drawn against an expense account, QuickBooks will automatically make the entries necessary soclosing financial reports are not affected.
  • If the check is from a closed period and is not assigned to an expense account, there may be complications you should consider before simply voiding the check. QuickBooks will give you a warning notice that states, "Voiding the check could affect previous financial reports." If this happens, and you do not have the expertise to create a journal entry that will correct any adjustments to the closed period, consult with your accountant before making the change.

References

  • Photo Credit Jupiterimages/Comstock/Getty Images
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