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With the availability of information through online banking, canceled checks are becoming a thing of the past. But some banks still return canceled checks, often for a fee. Canceled checks are useful for reconciling your bank account, supporting audit paperwork, or using as proof for misapplied vendor payments. Special care needs to be taken with canceled checks to ensure you do not become the victim of check fraud. |
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Step 1 Compare the canceled checks to your bank statement to ensure each check cleared for the amount issued. Step 2 Notify the bank of any discrepancy if you discover a check that cleared for a different amount. If the discrepancy is minor (only a couple of cents), you may want to simply write it off to bank charges instead of spending the time dealing with the bank. Step 3 Verify that all canceled checks have been recorded in your checking account ledger or accounting software, and log any that have not yet been entered, reconciling your bank account afterward. Step 4 File the checks in a secure, locked file if you need them for audit purposes. Destroy the checks with a shredder if you do not have to retain them for an audit. |
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