Quickbooks: How to Transfer Funds Between Accounts
Looking to transfer funds between your different financial accounts? Well, using the Quickbooks accounting software, you can do this and more. Intuit’s popular and long-running line of accounting software makes fund transfers between two or more accounts a breeze. For step-by-step instructions on how to do this, keep reading.
Quickbooks allows fund transfers between checking, savings and money market accounts, assuming these transfers are performed in your chart of accounts. Keep in mind, however, that you cannot transfer funds between A/P and A/R accounts. If you need to transfer funds from a savings account to a checking account, for instance (for the purpose of covering payroll), you’ll have to transfer the funds from your checking account to your petty cash account, simply because Quickbooks does not support this type of transfer.
So, when you are ready to transfer funds between two or more accounts, log into your Quickbooks accounting software and access the Banking menu > Transfer Funds > at which point you should see a new window appear > select the account that you wish to transfer funds from > select the account that you wish to transfer funds to > enter the amount of the transfer > save the transaction. Congratulations, you’ve just transferred funds between your accounts using the Quickbooks software!
Keep in mind that if you choose to transfer funds into your petty cash account, you must also move or withdraw the real funds too. So if you transfer $100 from your savings account to your petty cash account, you must then cash a check for $100 or withdraw $100 using an ATM card. Failure to perform this step could throw off your books.
You can easily perform this operation using an ATM withdrawal, however, by following just a few extra steps. Start by accessing the Baking menu > Transfer Funds > Transfer Funds drop-down arrow > select the bank account that you withdrew money from > Transfer Funds > Petty Cash or drawer account > enter the amount of the withdrawal > in the Memo field, enter ATM withdrawal > save the transfer.
Hopefully, this will give you a better idea of how to transfer funds using Quickbooks. Most business owners have more than one financial account, and it’s not uncommon for them to transfer funds between these accounts. Using the Quickbooks accounting software, you can perform these transfers in minutes. Just follow the steps listed above when you need to transfer funds between two or more accounts.
Did this tutorial work for you? Let us know in the comments section below!