It’s not uncommon for businesses to send or receive money using wire transfers. Also known simply as a bank transfer, it’s a quick, easy and efficient way to transfer money between two parties. But if you plan on using wire transfers in your day-to-day operations, you’ll need to record it in your Quickbooks account. Keep reading for a step-by-step walkthrough on how to record wire transfers.
You’ll probably notice that Quickbooks doesn’t have a feature specifically for wire transfers. Nonetheless, recording a wire transfer is still a relatively easy and straightforward task, which is accomplished using either a Cash Expense or Deposits feature (depending on whether it’s a payment or earned money).
If you’re making a payment with a wire transfer, you’ll need to use the Cash Expense feature in Quickbooks. This is done by logging into your account and choosing the plus icon > Expense, at which point you should enter “Wire Xfer” or Wire Transfer” in the “Ref no.:” field (this is used strictly for reporting purposes, so feel free to include your own label.”
Next, fill in the “Date” and “Amount” fields with the appropriate information: the Date field should include the date on which the wire transfer took place, while the Amount field should contain the total amount of the wire transfer. You can also enter the vendor or store associated with the wire transfer in the “Payee” field (this step is optional).
In the “Account” field, select the expense account to track this transaction. When you are finished, click “Save” to save the changes.
If you’re receiving money using a wire transfer, you should use the “Make Deposit” feature. This is done by clicking the + icon > Bank Deposit > Deposit To > choose the bank account receiving the deposit > complete the Date, Received From, Account, Payment Method and Account fields. When finished, click “Save” the save the changes.
It’s important to note that fees are often attached to wire transfers, typically to the receiving party. If you have to pay a fee for receiving a wire transfer, you should record it in the Account and Amount fields. Using the Account field to select the expense account that you wish to track the fee, while the Amount field should contain the total amount of the fee, expressed as a negative number.
Sorry if you were expecting more, but that’s all it takes to record a wire transfer in Quickbooks!
Did this tutorial work for you? Let us know in the comments section below!