Ever wondered how voiding a check can be a crucial part of responsible financial management, although it may seem like a simple action? Whether you are making direct deposits into your account or maintaining records for future purposes, such as insurance or savings accounts, you must be aware of voiding a check carefully, regardless of your age, because this knowledge plays a crucial role in your financial setting handling in your daily life.
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What does a Voided Check Mean?
Voiding a check is an act of deliberately rendering a check unusable, rendering it unable to be used for transactions by others, while simply being used for verification or bank security purposes.
Example
If you have just joined a new office for your job, the finance department may ask for a voided check to set up direct deposits for your paychecks into your bank account. They need your bank account number, which is printed at the bottom of your checks.
The goal behind voiding a check is to prevent anyone from cashing or depositing the check while keeping the bank’s routing number and the account holder’s account number visible for administrative purposes, such as setting up direct deposits. This process is accompanied by internal record-keeping to ensure accurate financial tracking and security.
Guidelines to Void a Check Safely and Correctly
By following these guidelines, you can guarantee the accuracy of your financial records, the security of your bank accounts, and your appropriate monetary transactions. Ultimately, a correctly voided check would save you from any kind of illegal transactions. You can protect your account from unlawful robbers and ensure its safety for appropriate transactions.
Simple Steps to Void a Check Safely and Effectively
- A blank cheque: Make sure it’s brand new and it is from your chequebook.
- A Permanent Pen: Make sure to use a permanent pen; a black marker is also acceptable. Avoid using a lead pencil for this purpose.
- Writing Void on the check: Write the word VOID across the front in clear letters, avoiding mistakes. The goal is that the check cannot be used for payment purposes.
- Consider marking Void at multiple places: It would be highly beneficial to mark Void at various locations, such as the signature line, the date line, and the amount box.
- Avoid hiding the crucial information: If you are giving the check for your bank account number, for example, to your HR or finance department for your salary purposes, then make sure the writing void does not hide the essential information like the bank account number. Make sure VOID markings don’t completely cover the bottom of the check.
- Do not sign the check: Leave the signature line empty; don’t sign the check, as it can be misused. Moreover, someone can just replicate your sign and claim the amount from your account. It can lead to severe loss.
Voiding a Check for Direct Deposits
Direct deposits require direct deposit forms, which ask for your routing and account numbers.
Your bank can also provide you with an official letter with your account information.
Securely dispose of the voided check after direct deposit is set up and confirmed.
- You might want to keep up the copy you made for your direct deposits.
- Once your direct deposit is successfully set up, you no longer need a physical voided check. The safest way to dispose of it is with its cross-cut shredder, which cuts your check into small, unreadable pieces so no one can use it.
- Never throw a shredded check into regular trash.
Voiding a Check in QuickBooks Online
- Go to banking or bank accounts and select the relevant bank account to view the register.
- Find the specific check you want to void in the register. You can use filters like date range, amount, and check number. This helps to narrow down your search, making it easier for you to find the specific check. Be Aware!! This is the crucial step, so carefully find and void the exact check you want.
- Click on the check to highlight it, then select Edit.
- On the check details screen, look for the More button at the bottom. Click it and choose Void.
- A warning message will appear if the check was for a bill payment. Confirm by clicking YES.
How to Void a Lost Check in QuickBooks Online
- Similar to a desktop, contact your bank and place a stop payment order.
- Don’t forget to provide them with all of your necessary information about the lost check.
- In QuickBooks Online, if you still need to make a payment, just create a new check with a new chequebook number for the intended payee.
Voiding a check in QuickBooks Desktop
- Go to the banking menu and select the use register. Choose the appropriate bank account.
- Locate the check transaction you wanted to void in the register.
- Double-click the check or select it and click Edit.
- In the Write checks window, go to the Edit menu at the top and choose Void check.
- In QuickBooks, it will change your amount to zero and add VOID in the memo field.
- At last, click save to record the Void.
Voiding a Lost Check in QuickBooks Desktop
If you lose a check and never find it, then you need to void it as described earlier. However, a few additional and necessary steps are required.
- Call your bank and request that they stop the payment as soon as possible.
- Please provide them with essential details, such as the exact date, amount, and the payee’s name.
- Be Careful! You need to act quickly to save your money because you can only make a stop payment if the bank hasn’t withdrawn the amount yet.
Voiding a Check in Sage 100
Voiding a check in Sage 100 can be slightly different. Moreover, it depends upon two conditions:
- If the check was Unissued/ Unposted (for example, it might be due to a printing error)
- Issued/Posted (for instance, a lost check or an error occurred after printing)
However, voiding can be performed using two methods :
Method 01: Voiding an Unissued /Unposted check
- Navigate to Accounts Payable, then move to the main page, and then click Manual Check Payment Entry.
- Enter the Bank Code associated with the check.
- In the check number field, enter the check number you want to void.
- Leave the Check Amounts field blank or enter zero (.00) for the amount.
- When prompted with the question “Is this a void check?” just click yes.
- Lastly, run the manual check and Payment Register to confirm the Void is recorded.
Method 02: Reversing an Issued/Posted Check:
- Navigate to Accounts Payable, move to Mains, then click Manual Check Entry.
- Enter the Bank Code associated with the check.
- In the check number field, add the check number you want to be reversed.
- When prompted with the question “ Is this a check reversal?”, click Yes.
- Sage will then ask you if you want to “recall original invoices.”
- You have to choose YES if you want original invoices to be reopened in Accounts Payable for future payment or adjustment.
- You have to choose NO if you don’t want to recall your original invoices.
- Review the entries in the Lines Tab.
- Click Accept
- Run the necessary registers.
To summarise, when you reverse the check in Sage 100 and don’t want to reopen the original invoices, you have to tell the system exactly which expense or liability accounts the original check affects, so it can put the amounts back, essentially un-doing the original accounting entry.
FAQs
A voided check is a regular check with the word “VOID” written across it in large letters that your bank looks at so they can send money to the account you want. It prevents the check from being payable, but it still reflects your bank information, so you can use it to establish direct deposit or any automatic payments.
You should void a check when you want to securely share your banking information, cancel a check with errors, or prevent someone from accidentally cashing or depositing it.
If the check hasn’t been deposited, you can try putting a stop payment on it through your bank. Once it’s cleared, however, it’s too late to void it; you’ll have to work it out with the recipient.
Sending a voided check through email has its risks, given the risk of identity theft, which makes people feel uncomfortable. If you do need to digitally transmit it, consider secure, encrypted options, or request a direct deposit form from your bank.
If you have a bank or credit union account, but don’t have checks, request a direct deposit form or a letter confirming your account ownership. Most employers and payees consider these good alternatives to a voided check.
