Reversing stale dated checks

You can proficiently manage stale-dated checks in QuickBooks Online without impacting prior years' financial statements, @gksteele6205. However, handling checks from earlier years demands careful attention to ensure the accuracy of your financial records.

Typically, stale-dated checks (usually after six months) should be voided. However, for a check dated back to 2021, it’s crucial to avoid affecting previous closed years. Here’s how to void the stale-dated checks:

1. Go to Accounting > Chart of Accounts.
2. Find the account where the checks were issued (usually your bank account).
3. Click on View Register or Go to Register.
4. Locate the stale-dated checks, click on the drop-down arrow next to the check, and select Void.
   
   

Note that voiding a check will create a journal entry to reverse the transaction related to the original check amount. once you void the checks, document their voiding with a note that includes relevant details. This will serve as a reference to your accounting entries. Ensure these entries correspond with your records for an accurate audit trail.
 

QuickBooks Online automatically makes the necessary adjustments when you void checks. You can manually create journal entries for specific accounts, to adjust. But be careful not to modify prior closed years.

Allow me to share a sample Journal Entries:

For the 2021 Stale-Dated Check

Debit: Appropriate Expense or Liability Account $XX

Credit: Bank Account $XX

For the 2023 Stale-Dated Checks

Debit: Appropriate Expense or Liability Account $YY

Credit: Bank Account $YY

Lastly, you can run reports to verify your changes. Check the bank reconciliation report and the profit and loss report to ensure that all accounts reflect the intended state.  After securing the transactions and reports, refer to this article: Reconcile an account in QuickBooks Online.

Additionally, you can also explore these resources to gain more ideas on: What are stale-dated checks? [And what to do with one].

Feel free to leave a comment below, if you have any further questions about managing stale-dated checks. I'll be here to answer.

Thank you.  I do not see a drop down to select void.  I am on QBO, my choices are delete, edit, cancel, save.

Will the reversing entries be on today's date?  I thought I had read somewhere that they would be on the date of the original check, 7/10/2023 in this case.

@gksteele6205 

Don't take the advice given by @GianSeth_A.  It's very wrong.  It's unbelievable how QB employees don't even know how their system works.

The proper way to handle stale checks is to create deposits dated in the current period to offset the stale checks.  Then, clear the deposits against the stale checks next time you reconcile. 

@GianSeth_A 

Your advice is terribly inaccurate and misleading and will cause changes to closed periods.  You never void a check from a closed period in QBO because QBO does not make "the necessary adjustments when you void checks."  All QBO does when voiding a check is zero the original entry made when the check was issued.  BTW, your journal entries are creating more checks, not reversing the stale ones.        

Hi there, @gksteele6205. Thank you for returning to the thread and following the suggestions provided by my colleague. I'm glad to step in and assist you with voiding your checks.

If you already see the Delete, Edit, Cancel, or Save options, simply click Edit to reopen the check transaction. From its window, click More and select Void. Then, choose Void Transaction to complete the process. 

Please see the image below for your reference.

Concerning the date of the reversing entries, you're right to question this. The reversing entries should indeed be recorded on the date of the original check (in your case, 7/10/2023). This maintains the accuracy of your financial records for the period when the check was initially issued.

If the transaction was already reconciled, then I suggest following the recommendation shared by Rainflurry.

For further guidance on handling stale checks in QBO, I recommend reviewing this article: What are Stale-dated Checks? And What To Do With One?

Additionally, I recommend consulting your accountant for professional advice on managing stale checks. Their expertise can ensure your books remain accurate and compliant with relevant regulations.

If you have any more questions about this process or encounter any issues, please don't hesitate to reply to this thread. We're here to ensure you can manage your finances accurately and efficiently.

@ReymondO 

"Concerning the date of the reversing entries, you're right to question this. The reversing entries should indeed be recorded on the date of the original check (in your case, 7/10/2023). This maintains the accuracy of your financial records for the period when the check was initially issued."

Good grief.  Another QB employee that has no understanding of how to reverse stale dated checks.  2023 is closed so do you think reversing the check on 7-10-23 is proper?  No, it is not.      

i do not understand "create deposits"...wouldn't that mess up my payroll account balance with the bank since the checks were not cashed?

after reading the complete string, i am still unsure what to do.