What are the industry best practices for handling and posting voided checks?


A: Specific practices surrounding voided check processing vary. However, below are processes and procedures to consider as part of your internal control over voided checks.

  • Deface all checks either as stamped "VOID" or using another method to make sure the check clearly shows its void.
  • If you file your void checks for a period of time before destroying them consider having the signature portion of the check removed. This avoids an unauthorized person in the company (or for that matter a nosey cleaning person) from copying the signature.
  • Consider destroying voided checks after a period of time and after the bank reconciliations have been completed.
  • Some companies require that all voided checks are noted in the accounting system.
  • Log voided checks in numerical sequence for easy reference and accountability.
  • If your check stock is pre-numbered then some companies use a check inventory log to track the issuance, use, and void sequence of all checks. Periodically an inventory is taken of all remaining check stock and voided checks.
  • Some companies use a similar log when issuing checks. The log notes the beginning and ending check sequence, and documents checks used and voided. Both the good checks and the void checks are included with the log to the appropriate person signing the checks so they can verify the sequence and review the voided checks.

We also located a few methods used by the following organizations:

We also encourage you to post your question to the Forum section to get feedback directly from your peers on how they handle voided checks.

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