As a business owner, there are times when you may receive a check or payment from a customer and it ends up bouncing due to insufficient funds in their account.

It’s common to wonder how to handle all of the different pieces in QuickBooks to make sure both the customer’s account and your bank account are entered properly.

Guess what… that’s what this tip is all about 🤓

Whether you need to know this now or sometime in the future, you’ll be glad you took the time to learn it and save this video to reference in the future. 🙌🏻

 

If you’re looking for the Desktop version of this video click here

 

Follow these steps to enter an NSF check in QuickBooks Online:

Record the Bouncing of the Check:

The first step is to record that your customer’s check has bounced:

• Click on the “+ New” button in the left-hand menu and select “Check” or “Expense”.

• Enter the name of the Customer who bounced in the “Payee” field.

• Enter the date the payment was removed from your bank account. 

• Select the bank account.

• Select payment type 

• In the reference box add “NSF” 

• In the “Category” section, select “Account Receivable” account.

• Enter the amount of “NSF Payment”.

• In the customer dropdown select the “Customer”.

• If needed, add any additional information such as memo or attachments.

• Click on “Save and Close”.

 

Apply the Original Payment to the Check/Expense:

• Go to the “Sales” menu and select “Customers”.

• Find the customer who made the payment and click on their name.

• On the customer’s page, go to the “Transactions” tab.

• Find the payment you want to change and click on it to open it.

• Click on “Unapply” to remove the payment from its current invoice.

• Once it is unapplied, you can apply the payment to the Expense/Check.

• Click on “Save”.

 

Create an Invoice to Charge the Customer for the NSF (non-sufficient funds) Fee:

• Go to the QuickBooks Online homepage and click on the “Create” button (+ icon).

• Select “Invoice” from the list of options.

• Enter the customer’s name or select it from your customer list.

• Add an item for the NSF fee by clicking on “Add new item” and selecting “Service” from the dropdown menu.

• In the next field, enter a description such as “NSF Fee”.

• In the rate field, enter the amount of the fee you want to charge.

• Save this item and add it to your invoice.

• Review your invoice details and make any necessary adjustments.

• Click “Save and send” or “Save and close.”

 

Add the Bank Charge for the NSF Fee:

• Go to the “+” icon on the QuickBooks Online navigation bar and select “Expense” under the “Vendors” section.

• Enter the vendor name for your bank.

• Select the payment account or credit card used to pay for the bank service charge expense.

• In the “Category Details” section, select an appropriate account from the “Account” dropdown list, such as “Bank Service Charges” or a similar account you have previously set up in your chart of accounts.

• In the “Memo” field, enter a description of what the expense is for, such as “NSF fee charged by bank.”

• Enter the amount of the expense in either of these fields: Total or Amount paid.

• Click “Save and close”.

 

Send the Customer a Statement:

• Go to the “Sales” tab from the left menu and then select the “Customers” option.

• Click on the name of the customer you want to create a statement for.

• On the customer information page, select “Create Statement” in the upper right-hand corner of your screen.

• Choose a date range for your statement and select the type of statement you want to send (open or overdue items).

• You can add a message to your statement, customize it as needed, and preview it before sending.

• Once you’re ready to send your statement, click on “Save and Send” or “Save and Close” if you’d like to send it later.

 

Share in the comments below if this helped you and if you had any ah-ha’s 💡

 

Have you been using QuickBooks for a while, but when you pull a report you just don’t understand what it’s saying?

Does the idea of going to see your tax professional sound a little stressful and maybe cause you to feel like you want to pull your hair out?

I would love for you to join me on my customizing QuickBooks workshop.

I’ll be sharing:

• The most efficient way to track your Income and Expenses.
• How to create accurate reports in order to view how your business is actually doing and stop second-guessing yourself.
• Where to get the data you need to make the best decisions to grow your business.

And the #1 SECRET to feeling confident at your next tax appointment.

I’m excited to see you on the workshop!

Click here to save your seat  → Join My Free Workshop!

 

🙋🏻‍♀️ I’d love to connect with you on Instagram or Facebook

Subscribe for more QuickBooks tips on YouTube

 #CandusKampfer