How To Write A Check In QuickBooks Online: A Step-by-Step Guide

QuickBooks Online (QBO) is a powerful tool for managing your finances, and a crucial part of that is the ability to accurately record your expenses, including those paid via check. This guide provides a comprehensive, step-by-step walkthrough of how to write a check in QuickBooks Online, ensuring you can manage your payables efficiently and effectively. We’ll cover everything from the basic process to more advanced features, helping you master this essential accounting task.

Understanding the Basics: Why Writing Checks in QuickBooks Online Matters

Before diving into the “how,” let’s clarify the “why.” Writing checks within QBO is vital for several reasons. It allows you to:

  • Track Expenses: Accurately record all your outgoing payments, providing a clear picture of where your money is going.
  • Maintain a Clear Audit Trail: Every check you write is logged, offering a documented history for easy reconciliation and auditing.
  • Generate Accurate Financial Reports: Properly recorded checks contribute to the accuracy of your profit and loss statements, balance sheets, and other critical financial reports.
  • Streamline Reconciliation: Matching checks to your bank statements becomes significantly easier.

Step 1: Accessing the “Write Checks” Feature

The first step is to locate the “Write Checks” feature within QuickBooks Online. This is where the magic happens.

  1. Log in to your QuickBooks Online account.
  2. Navigate to the left-hand navigation menu.
  3. Click on “Expenses.”
  4. Then, click on “Write checks.” This action opens the check writing window.

Step 2: Filling in the Check Details

Now, you’re ready to input the essential information for each check. This is where attention to detail is paramount.

  1. Choose the Payee: Click the “Payee” dropdown and select the vendor or individual you are paying. If the payee isn’t already in your list, you can add them by clicking “Add new.” Populate all the necessary contact information for future use.
  2. Select the Bank Account: Ensure the correct bank account from which the check will be drawn is selected. This is usually pre-filled but double-check to avoid errors.
  3. Enter the Date: Input the correct date of the check. This is critical for accurate reporting and reconciliation.
  4. Input the Check Number: QuickBooks Online automatically assigns a check number, starting with the next available number. This field can be edited, especially if you need to use a different numbering system or if you’re entering historical data.
  5. Enter the Amount: Accurately record the amount of the check.
  6. Add the Expenses: This is where you assign the expense categories. In the “Category” column, select the appropriate expense account (e.g., Rent, Utilities, Office Supplies). Enter a description if needed. Finally, enter the expense amount.
  7. Add a Memo: Use the “Memo” field to add a brief description of the payment (e.g., Invoice number, service provided).

QuickBooks Online offers the capability to attach supporting documents directly to your checks. This is a fantastic feature for maintaining a complete record.

  1. Click the “Attachments” icon (usually a paperclip) within the check window.
  2. Choose to either upload a file from your computer or use the QuickBooks Online document storage.
  3. Attach any relevant documents, such as invoices, receipts, or contracts. This makes auditing and review significantly easier.

Step 4: Saving, Printing, and Mailing Your Check

Once you’ve entered all the details and attached any necessary documents, it’s time to finalize the check.

  1. Save the Check: Click “Save and Close” to save the check and return to the main QuickBooks Online interface, or “Save and New” to save this check and begin a new one.
  2. Print the Check (If Applicable): If you use pre-printed check stock, click the “Print check” button. Follow the on-screen prompts to configure your printer and print the check.
  3. Record the Check (If Printing is Not Needed): If you are not printing a physical check (e.g., if you’re recording a payment made through an online bill pay service), simply save the check.
  4. Mail the Check: If you printed the check, mail it to the payee.

Step 5: Handling Recurring Checks and Templates

QuickBooks Online streamlines recurring payments through its recurring transactions feature.

  1. Create a Recurring Template: While in the “Write Checks” window, you can click the dropdown arrow next to the “Save and Close” button and select “Make Recurring.”
  2. Customize the Schedule: Set the frequency (weekly, monthly, quarterly, annually, or custom), start and end dates, and other recurrence options.
  3. Choose the Template Type: Select the transaction type (in this case, “Check”).
  4. Save the Template: This creates a template that you can reuse for future payments, saving you time and effort.

Step 6: Voiding or Deleting a Check (Correcting Mistakes)

Mistakes happen. QuickBooks Online allows you to correct errors, but the method differs depending on the situation.

  1. Voiding a Check: If the check hasn’t been cashed, voiding is the best approach. Open the check, click “More” at the bottom, and select “Void.” This retains a record of the transaction.
  2. Deleting a Check: If the check hasn’t been cashed and isn’t needed for historical purposes, you can delete it. Open the check, click “More,” and select “Delete.” Be cautious when deleting transactions.
  3. Correcting a Cashed Check: If the check has been cashed, you’ll need to create a journal entry to correct the issue.

Step 7: Reconciling Your Bank Account

Reconciling your bank account is a critical step in financial management. It ensures the accuracy of your records.

  1. Access the Reconciliation Feature: Go to “Accounting” and then “Reconcile.”
  2. Select the Account and Enter the Ending Balance: This information can be found on your bank statement.
  3. Match Checks to Your Bank Statement: Check off the checks listed on your bank statement.
  4. Resolve Discrepancies: If the difference between your QuickBooks Online balance and your bank statement balance doesn’t equal zero, investigate any discrepancies.

Step 8: Troubleshooting Common Check-Writing Issues

Even with the best practices, you may encounter issues. Here are some common problems and their solutions:

  • Incorrect Bank Account Selected: Always double-check the bank account before saving the check.
  • Incorrect Expense Categories: Review and correct any miscategorized expenses.
  • Printing Issues: Ensure your printer settings are correctly configured for your check stock.
  • Missing Check Numbers: Check your check numbering settings and ensure they are up-to-date.
  • Reconciliation Errors: Carefully review your bank statement and QuickBooks Online records to identify and correct any discrepancies.

Step 9: Advanced Features and Tips for Efficiency

Beyond the basics, QuickBooks Online offers features to optimize your check-writing process.

  • Use Keyboard Shortcuts: Learn keyboard shortcuts to speed up data entry.
  • Customize Check Layouts: Tailor the check layout to your specific needs.
  • Utilize Reporting: Generate reports to analyze your spending patterns and financial performance.
  • Integrate with Other Apps: Explore integrations with other apps to streamline your workflow.

Step 10: Best Practices for Maintaining Accurate Records

Maintaining accurate records is fundamental to financial success.

  • Regularly Reconcile Your Bank Account: Do this at least monthly.
  • Categorize Expenses Consistently: Use consistent expense categories.
  • Keep Detailed Records: Always keep supporting documents.
  • Back Up Your Data: Make sure your data is securely backed up.

Frequently Asked Questions

How do I add a new vendor to QuickBooks Online when writing a check?

When you are in the “Payee” field, click the dropdown arrow and then choose “Add new.” A window will pop up that will allow you to enter the vendor’s information, including their name, address, and any other relevant details.

Can I write a check to myself in QuickBooks Online?

Yes, you can write a check to yourself if you need to move funds between different accounts you manage, such as a personal account and a business account. Be sure the appropriate bank accounts are selected.

What happens if I accidentally enter the wrong amount on a check?

If the check hasn’t been cashed yet, you can void it. If the check has been cashed, you’ll need to create a journal entry to correct the mistake.

How do I print checks from QuickBooks Online?

You need to use check stock that is compatible with QuickBooks Online. Once you’ve entered the check details, click the “Print check” button and follow the on-screen prompts to configure your printer and print the check. Make sure your printer is set up correctly and that you have the right type of check stock.

Is there a way to track the status of the checks I write in QuickBooks Online?

While QuickBooks Online doesn’t have a built-in “check status” feature, you can use the memo field to note the status of the check. For instance, you can use a memo to note when the check was mailed, cashed, or if there are any issues related to the payment.

Conclusion

Writing checks in QuickBooks Online is a fundamental skill for managing your finances. By following this step-by-step guide, you can confidently navigate the process, from entering the necessary details to printing, mailing, and reconciling your checks. Remember to prioritize accuracy, maintain detailed records, and utilize the advanced features to streamline your workflow. Mastering this skill will contribute to the accuracy of your financial reports and help you make informed decisions about your business. Consistent use of these best practices will help you maintain accurate financial records, enabling you to effectively manage your finances and achieve your financial goals.