There was a fraudulent check drawn on our bank account. Do I need to journalize the check in order to reconcile with Quickbooks Online?

Yes, Turnerey, you can enter a Journal Entry (JE) to record the fraudulent check in QuickBooks Online (QBO). Let me offer some guidance on how to enter it.

You can set up a specific expense account for fraud-related transactions and record the fraudulent check as a JE by debiting the Fraud Expense account and crediting your Checking Account. If your bank reverses the transaction, you should make another journal entry to reverse these effects.

Please consider consulting an accountant to ensure these entries are made correctly. An accountant can provide expertise and ensure accuracy in maintaining reliable financial records and compliance with accounting standards.

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Additionally, to help ensure that your accounts match your bank, check, and credit card statements, I have provided an article that will guide you: Reconcile an Account in QuickBooks Online.

If you have more concerns about managing bank transactions in QBO, click the Reply button. We're always here to help you.