Easy Tech TutsHow to Record a Bounced Check in QuickBooks Online Easily 2026
By Impran M N
A bounced check needs to be recorded properly so your cash flow and outstanding payment tracking stay accurate. This guide covers how to record a bounced check in QuickBooks Online and reconcile your accounts afterward, useful for small businesses and larger organizations that regularly track incoming payments.
01Confirm the check bounced
Verify with your bank that the check was returned before making any changes in QuickBooks Online.
02Reverse the original payment
Undo or adjust the original payment entry so the invoice or transaction reflects that it's still outstanding.
03Record any related bank fees
If your bank charged a fee for the bounced check, log that as a separate transaction so your expenses stay accurate.
04Notify the customer if applicable
Reach out to the customer regarding the bounced payment and any next steps for resolving the balance.
05Reconcile your accounts
After making the adjustments, reconcile your bank account to confirm your records match your actual bank statement.
Frequently asked questions
How do I know if a check bounced?
Your bank statement or notification will typically show the check as returned or declined, which should prompt you to update QuickBooks Online.
Do I need to record bank fees separately from the bounced check?
Yes, any fees your bank charges related to the bounced check should be recorded as their own transaction for accurate expense tracking.
What common mistakes should I avoid?
Forgetting to reverse the original payment is a common mistake that leaves your invoice or transaction incorrectly marked as paid.
Does a bounced check affect my financial reports?
Yes, it affects your cash flow and outstanding balances, so it's worth reviewing related reports after recording the reversal.
Watch the full walkthrough
The same steps, demonstrated on screen from start to finish.
