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transfers

How to record a transfer between two different business entities?

1 Comment
QuickBooks Team

Re: transfers

You'll only need to create a certain transaction in each company file, Somak.

 

To transfer funds from one business to another, you can enter a Check or Expense. You can create either of these transactions from the company you're transferring from, and then deposit the funds to the other.

 

To transfer funds:

  1. Click the Plus icon.
  2. Under Vendors, select Check or Expense.
  3. Choose the bank account where the funds are coming from.
  4. Complete the details of the transaction.
  5. On the line item below Account details, select Asset or Equity to reflect the funds going out of the business.
  6. Enter the amount that you need to transfer.
  7. Click Save.

To receive the funds on the other company:

  1. Click the Plus icon.
  2. Under Other, select Bank Deposit.
  3. Select the bank account the funds are going to.
  4. Select the date.
  5. In the Add funds to this deposit section, specify who/where the funds were Received From.
  6. On the Account section, select Equity or Liability to show the funds coming into the business.
  7. Enter the amount, and then click Save.

For future reference, you can refer to this article: Transfer funds between companies.

 

Of course, it would also be best to consult an accounting professional first. This is to check if they have other ways to record this in QuickBooks.

 

There are other users out there who can also join this thread and share their practices. Just keep an eye out for that or leave a reply if you have more questions.