March 23, 2023
As a business owner or accountant, handling uncashed checks can be a tedious task that requires attention to detail and knowledge of state-specific laws. In some cases, checks may remain uncashed for an extended period, leading to escheatment – the transfer of unclaimed property to the state government. QuickBooks, a popular accounting software, offers tools to help manage this process efficiently. In this blog post, we will explore how to handle escheating uncashed checks on QuickBooks using Eisen.
Before escheating any uncashed checks, it's crucial to review and reconcile all outstanding checks in QuickBooks. This step helps ensure that all transactions are accurate and up-to-date, reducing the risk of errors or omissions.
Using QuickBooks, you can easily generate a report of outstanding checks. This article provides a step-by-step guide.
Collect and organize payee information that you have on file including name, address, and last known contact information. Each state has its own regulations on when and how to escheat unclaimed property, including uncashed checks. Eisen tracks state-specific escheatment regulations to help you've met due diligence requirements and stay in compliance. If Eisen determines any outstanding checks are escheatable, we'll walk you through Steps 3 and 4.
Eisen offers a streamlined process for creating and recording escheatment transactions, including generating state-specific escheatment reports and remittance forms. Escheatment transactions typically involve transferring the funds from the uncashed checks to a liability account, such as "Escheatment Liability." Eisen can automatically create these accounts in QuickBooks and record the necessary transactions.
Finally, you need to submit escheatment reports and remittance forms to the appropriate state government agencies. Those agencies will then do their best to reunite owners with their property.
Eisen can generate the state-specific reports and forms for you to review. Escheatment regulations vary by state, and failure to comply with these regulations can result in penalties and fines. Eisen can help ensure compliance by providing up-to-date information and automated tools to handle the escheatment process efficiently.
Handling escheatment of uncashed checks can be a time-consuming and challenging process for SMBs and their accountants. Using Eisen alongside QuickBooks streamlines the process from identifying uncashed checks to submitting state-specific reports and forms. Reach out to get started and minimize the risk of errors and penalties.