If you have multiple bank or financial accounts recorded in Quickbooks, you might be wondering how to transfer funds between them. Some business owners assume that it’s okay to perform two transfer transactions. Unfortunately, if both the accounts are listed in the chart of accounts, this doesn’t work. Instead, the correct way to record this transfer is to enter it as a single transaction. Below, we’re going to walk you through the process of recording a funds transfer between two accounts in Quickbooks.
Transferring Funds Using the Transfer Method
Quickbooks actually supports several methods to transfer funds between two or more accounts, one of which involves using the Transfer method. Start by logging in to your Quickbooks account and clicking the (+) icon at the top of the screen. Next, choose “Transfer” under the “Other” menu. Go to the “Transfer Funds From” menu and select the bank account from which the funds are being withdrawn.
There are a few steps left in the process. After choosing the bank account, enter the amount of the transfer in the “Transfer Amount” field. Finally, enter the date of the transfer, followed by “Save and close.”
Transfer Funds Using an Imported Bank Transaction
Another way to record a funds transfer in Quickbooks is to use an imported bank transaction. This method, however, only works if you imported the two transactions but haven’t entered a Transfer.
To record a funds transfer using this method, log in to Quickbooks and click the “Banking” link on the left-hand sidebar menu. From here, choose the bank account from which you want to transfer the funds. Now scroll through the listings and select the transaction. Click the “Transfer” button and then choose the other account to which you want to transfer the funds, followed by “Transfer.” You can then click the “Recognized tab” button to find the transaction, which should yield a match
Transferring Funds Using a Check
Of course, another way to record a funds transfer is to use a check. If you performed the transfer using a check, you can use this method. Basically, it involves selecting the “Write Check” window and then recording the amount of the transfer and the check number.
When transferring funds using a check, make sure the bank accounts are correct. In the “Bank Account” field, look to ensure that it’s the appropriate account.
Did this tutorial work for you? Let us know in the comments section below!