Thursday, February 26, 2009

An Enterprise Client asks, “What’s the best way to handle a bounced (NSF) check from a customer?”

When a customer's check is returned for insufficient funds, perform the following steps:
1. Create items for tracking bounced checks and their associated charges (a one-time setup task).
2. Use the items created in step 1 to re-invoice the customer for the bounced check, plus any bank fees you want to recover. This step also backs out the original transaction on your books.
3. (Optional) QuickBooks has a Bounced Check letter that you can send along with the new invoice.
4. Enter your bank's bounced check charge when you reconcile your bank statement.

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