One of the many useful features offered with Quickbooks is direct deposit. If you have an on-going professional relationship with a client and make routine payments to them, you can set up direct deposit to automatically send it on a specified date. This hands-off approach allows you to spend more time growing your business and less time worrying about things like payment dates.
However, you may find yourself in need of canceling a direct deposit check. Perhaps the vendor is no longer available, or maybe you switched to a new vendor. Regardless of the reason, we’ll walk you through the process on how to cancel a direct deposit check.
Canceling a Direct Deposit Before Deadline
As long as the direct deposit’s deadline date is a minimum of two day away, you can cancel the check without fear of money withdrawing from your account. Please note: 5 P.M Pacific time is when direct deposits officially go through, so it’s best to cancel them at least two days before this time. Doing so will ensure the check is canceled and the funds remain in your bank account.
Tip: create a company backup file before proceeding. Although errors are rare, there have been some reports of users losing data after performing a direct deposit cancellation. The few additional minutes it takes to create a backup file could prove to be a life-saver in the event of a system crash or failure.
To cancel a direct deposit, go into the employees menu and select ‘Edit/Void Paycheck.’ This will bring up a calender format with all of the respective payments made to the given employee or client (doesn’t necessarily have to be an employee). Select the date range and click on the check once you’ve located it.
After selecting the check, click on the button titled ‘Void’ to cancel it. Quickbooks will then prompt you with a verification dialog box, asking you if you really want to cancel the check. Assuming the answer is yes, click accept to finish the cancellation. The check won’t disappear from your Quickbooks account, but instead its value will drop to $0.00. You can still go back to view the check, add memos, etc. later if necessary.
If you wish to send the data to Intuit, go back into the ‘Employees’ menu and select ‘Send Payroll Data.’ Sorry if you were expecting more, but that’s all it takes to cancel a direct deposit check in Quickbooks!