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Understanding the Problem: Checks that remain uncleared at the end of a calendar year are classified as “stale.” These checks negatively impact your end-of-year report by creating discrepancies between your final report and the starting numbers provided by Corporate.

Preventing Stale Checks:

• Timely Follow-up: Monitor outstanding checks regularly.
• Effective Communication: Maintain open communication with check recipients to ensure timely deposit or resolution.
• Accurate Record-Keeping: Use clear and detailed notes in your ledger to track voided and reissued checks.

Steps to Void a Stale Check:

1. Verification:
   • Confirm that the check has not cleared within the past six months by reviewing bank statements.
   • Contact the check recipient to inquire about the status of the check.
     • If the check has been received and deposited, monitor your account for clearance.
     • If the check has not been received, request that the recipient not deposit it if found.
     • Determine if a replacement check is necessary.
2. Voiding the Check:
   • Do Not Remove Expense: Leave the original expense entry in your ledger.
   • Add a Void Note: Clearly mark the check as “voided” in the ledger.
   • Record Void Income: Create a new income entry in your register to account for the voided check amount. Reference the original check number, date, and amount.
3. Reissuing a Check (if necessary):
   • Create a New Entry: Add a new entry to your register with a new check number.
   • Reference the Old Check: Include the original check number in the memo field.
   • Verify Recipient Information: Double-check the mailing address and delivery method to prevent future issues.
   • Communicate with Recipient: Inform the recipient about the reissued check and encourage prompt action.

By following these guidelines, you can effectively manage stale checks, maintain accurate financial records, and avoid unnecessary complications in your year-end reporting.