How to Clear Out Outstanding Checks in QuickBooks

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Failure to clear outstanding checks can prevent you from reconciling and balancing your company accounts correctly. This issue typically occurs in QuickBooks business accounting software when you set a new bank account's opening balance using information from the checkbook register rather than a bank statement. To fix the problem, create a clearing account and then enter the outstanding checks to reconcile and correct the opening balance.

Clearing Account Setup

Select the "Lists" tab in the main QuickBooks menu bar, and then choose "Chart of Accounts" from the pull-down menu.

Click "Account" followed by "New." Choose the "Bank" option from the list of account types. Click the "Continue" button.

Enter a memorable name, such as "Clearing Account" in the applicable field. Select "Save and Close" to create the new account and exit the account creation window.

Check Entry

Click the "Banking" tab in the main menu, and then select "Write Checks" from the pull-down list.

Type the payee name, payment date, check number and check amount in the applicable fields.

Select the "Expenses" option, and then choose the clearing account you created from the drop-down list.

Click the "Save and New" button to save the entry to this list and open a new check entry.

Repeat this procedure for each outstanding check that you want to clear. Click "Save and Close" when you're done.

Check Reconciliation

Choose "Reconcile" from the Banking drop-down menu. Click to select the account that you want to reconcile in the Begin Reconciliation window.

Type the statement date and ending balance in the applicable fields. The statement date should be the same date you used when first created the account. The ending balance should be the beginning balance on the bank statement. Click the "Continue" button.

Click to select each of the outstanding checks that you previously entered.

Choose "Reconcile Now" to reconcile and clear the outstanding checks.