How to Record a Customer’s NSF Check in QuickBooks Online?

As a business owner, you know the importance of keeping track of your finances. One issue that can arise is receiving a bounced check from a customer. This can be frustrating and can cause financial problems if not handled correctly. In this blog post, we will guide you through the process of recording a bounced check in QuickBooks Online. We will also cover how to determine the correct account to record an NSF fee, how to reopen the original invoice and record the NSF fee, and whether or not you can bill your customer for NSF fees. Additionally, we will provide tips on how to email NSF notifications to customers and best practices for handling them in QuickBooks Online. Lastly, we will show you how to utilize QuickBooks reports to track bounced checks and NSF fees with ease. Keep reading to learn everything you need to know about recording a bounced check in QuickBooks Online!


How to Record a Bounced Check in QuickBooks Online?

To record a bounced check in QuickBooks Online, it’s essential to understand the difference between a bad check and an NSF check. Next, utilize QuickBooks Online to record the bounced check as a bank deposit. Create a new invoice for the customer with the amount of the bounced check and record any applicable fees as well. Additionally, be sure to contact the customer promptly for payment if their check bounces.

Step-by-Step Guide to Recording a Bounced Check in QuickBooks Online

To record a bounced check in QuickBooks online, start by identifying the customer and invoice associated with the payment. Once done, create a bank deposit to reflect the bounced check and record any bank charges incurred such as NSF fees or returned item fees. Be sure to follow up with your customer for payment of all fees and ensure that the bounced check is properly accounted for in the account field.

What is a Bounced Check and Why Should You Record It in QuickBooks?

A bounced check is when a customer’s bank returns an unpaid check due to insufficient funds. Accurately recording it in QuickBooks helps track the amount owed and take actions for collection. Follow the right steps and enter all necessary information when creating a new transaction linked to the original payment or invoice.

How to Determine the Correct Account to Record a Bounced Check Fee?

When recording a bounced check in QuickBooks Online, it’s essential to determine the right account to record the fee accurately. The most common account for this purpose is “bank charges” or “bank fees,” but you can also create a new account if needed. Make sure to enter the amount of the fee and the date field it was charged correctly. Accurate records of bounced checks and fees are vital for maintaining your business’s financial health.

How to Reopen the Original Invoice and Record the NSF Fee?

To record an NSF check in QuickBooks Online accurately and maintain your financial records correctly,

  • Go to Customer Center.
  • Select the customer’s name from the Invoices tab.
  • Double-click invoice.
  • Click Add Time/Costs at its bottom.
  • Choose New Service Item.
  • Enter the NSF fee description in the Item Name/Number field.
  • Choose an income or expense account to track bank charges.

By following these steps you can ensure accurate recording of NSF checks.

Can You Bill a Customer for NSF Fees in QuickBooks Online?

QuickBooks Online allows billing customers for NSF fees by creating an invoice and recording the bounced check as a negative payment with the “NSF Check” payment method. Additionally, a service item for the customer fee can be added to the invoice.

Recording a Bounced Check in QuickBooks Desktop

When recording a bounced check in QuickBooks Desktop software, ensure that you follow specific steps. Initially, identify which account is suitable for recording a bounced check. Then create an invoice and apply the payment received from customers. After that, make general journal entries for bank fees incurred due to returned checks. Consider setting up automatic bank feeds to detect bounced checks quickly.

What Are the Steps Involved in Recording a Bounced Check in QuickBooks Desktop?

To record a bounced check in QuickBooks Desktop, create a new invoice and mark it as unpaid after entering the payment received. Keep accurate records to track your cash flow and avoid overdraft fees. Utilize QuickBooks’ tools to manage finances effectively. Create a new invoice to collect the owed payment. Intuit is a leading provider of financial management software, including QuickBooks, that can help streamline your accounting processes and improve your overall financial management.

How to Enter a Returned Check in QuickBooks Desktop Using the Write Checks Feature?

When utilizing QuickBooks Desktop and needing to enter a returned check using the Write Checks feature, first create an account dedicated to tracking bounced checks. Next, select this account from the Account dropdown menu. In the Amount field, input a negative number that matches the amount of the bounced check and add an explanatory memo. After recording this transaction, attempt to collect payment from your customer or write off this loss as bad debt. It is important to note that if you are using QuickBooks Online, you can find the new button for entering a bounced check under the Plus sign menu.

How to Handle a Returned Check in QuickBooks Desktop Using the Journal Entry Feature?

Create a new journal entry in QuickBooks Desktop and choose the correct accounts for handling a returned check. Debit Accounts Receivable and credit the customer’s bank account for the bounced check payment. It is essential to follow up with customers to resolve any outstanding payments or fees related to returned checks.

Tips for Emailing NSF Notifications to Customers

To ensure effective communication when emailing NSF notifications to customers, customize the email template and include all necessary details. Follow up with customers to resolve any outstanding fees or payments related to a bounced check. Your message must come across as clear and professional while maintaining good customer relations.

What to Include in an NSF Notification Email to Customers?

Politeness is key when drafting an NSF notification email to customers in QuickBooks Online. State clearly that the customer’s check has been returned due to insufficient funds while including relevant details such as the date of the returned check and the amount owed. Consider offering alternative payment methods or plans to help resolve their outstanding balance smoothly.

Best Practices for Handling NSF Notifications in QuickBooks Online

To handle NSF notifications in QuickBooks Online effectively, communicate clearly with customers and offer them instructions on how to resolve issues. Efficiently inform your customers of NSF checks via email notifications. Provide details such as the date of the check, the amount owed or bank charges incurred. Accurately record the NSF check in QuickBooks Online by updating the customer’s account balance and attaching relevant documents.

Utilizing QuickBooks Reports to Track Bounced Checks and NSF Fees

Track bounced checks and NSF fees in QuickBooks by generating a report to identify them. Assign the bounced check fee to the correct expense account and reconcile your bank account regularly. Set up automatic reminders for overdue payments and receive NSF checks using either general journal entries or sales receipts. Alternatively, access QuickBooks’ Customer Center to create new invoices or receive payments directly. Manage your finances easily with QuickBooks desktop software.

How to Generate a Bounced Check Report in QuickBooks Online?

To generate a report of bounced checks and NSF fees in QuickBooks Online software, go to the menu bar and select Reports > Customers & Receivables > Bounced Checks Detail. This report provides information on customer names, check numbers, dates received, and amounts and helps you track outstanding payments from your customers. By using this feature in Quickbooks Online Software you can ensure timely payments from your customers.

How to Analyze NSF Data in QuickBooks Desktop Using Profit and Loss Reports?

You can use QuickBooks software to take the next step in analyzing your bank account’s NSF data. Using the Profit and Loss report to identify trends in bounced checks could lead to preventing insufficient funds. Additionally, setting up automated reminders for overdue payments or bounced checks is a good idea. By utilizing these features, businesses can avoid bank service charges associated with returned checks while maintaining their bank balance.


Recording a bounced check in QuickBooks is an essential step to ensure that your accounting records are accurate. By following our comprehensive guide, you can easily record the NSF fee and reopen the original invoice. You can even send notification emails to customers about their bounced checks. To track and analyze your bounced checks and NSF fees, QuickBooks offers various reports that provide insights into your company’s financial health. With our help, you can handle bounced checks like a pro. Want to learn more? Download our free guide on managing your business finances with QuickBooks now.

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