What deleting does
Deleting removes a transaction from reports, as if it never existed. Depending on the software, the activity log may keep a note. It is appropriate for true duplicates or entries made by accident, in an open period, before anything depends on them.
Deleting a payment can reopen the invoice or bill it paid, so check linked items afterward.
What voiding does
Voiding keeps the transaction on file but sets its amounts to zero. The number and date remain, and the record shows it was voided. This is the usual choice for checks that were written, invoices sent and then canceled, or numbered documents that must stay in sequence.
Voided checks that were never cashed should be voided in the books on the same date, and the physical check marked and kept.
Reversing and adjusting entries
In a closed period, neither deleting nor voiding is wise. Instead record an offsetting entry dated in the current period, with a clear memo, or a credit memo or refund for sales documents. The original stays visible and the correction is traceable.
A reversing journal entry swaps the debits and credits of the original, canceling its effect.
Consequences for reports and taxes
Voids and deletes in prior months can change reports you have already given to your tax preparer, lender or partners. Sales tax returns already filed may no longer agree with your books. Use a closing date to block quiet edits, and communicate any corrections.
If the correction affects a filed return, ask your tax preparer whether an amended filing is needed.
A simple decision guide
Ask three questions. Is the period open and is the transaction unfiled and unreconciled? If yes, delete is usually fine for a mistake. Is it a numbered document or a check? Void it. Is the period closed or reconciled? Reverse with a new entry.
Whatever you choose, leave a note explaining what was done and why. Your future self, bookkeeper and auditor will thank you.
If a reconciled transaction must change, undo the reconciliation for that item only when you understand the effect on the statement, then reconcile again, rather than forcing numbers to match.
Examples by situation
A duplicate bank-feed expense in the current month can be deleted. A check written to the wrong vendor should be voided so the number stays accounted for. An invoice sent last quarter at the wrong price should be corrected with a credit memo and a new invoice, since the customer already holds the original. A bill entered into a closed year is corrected with a current-dated adjusting entry and a note. Thinking in these cases makes the choice faster each time it comes up.
Common questions
Can I void a bank-reconciled transaction?
You can, but it changes a reconciled balance. Undo the reconciliation for that item with care and reconcile again.
Is deleting ever hiding something?
It can be used that way, which is why activity logs, separate logins and closing dates matter.
What should I do with a lost check?
Void it in the books once you stop payment or reissue, and note the check number and date.
This guide is general information, not tax, legal or accounting advice. Rules, fees and due dates change; check with the IRS, the NJ Division of Taxation or a licensed professional for your situation.