Automatic Transfer Mistake

To set up the transfer and its return, ensure you have Equity accounts named Owner's Contribution and Owner's Draw. The automatic transfer is set up with your bank, so sign in to your bank’s website or contact them to cancel it. QuickBooks can't reverse bank transfers because it only records what your bank reports.

If the Equity accounts aren’t in your Chart of Accounts yet, here's how to create them:

1. Go to the Lists menu and open Chart of Accounts.
2. Click the Account dropdown, then choose New.
3. Pick Equity, then Continue.
4. Name it Owner's Contribution, then select Save & New.
5. Name it Owner's Draw, then finish with Save & Close.

To make sure the accounts fit your business type, I recommend checking with your accountant before recording the entries.

To record the mistaken deposit, here’s how:

1. Go to the Banking tab, then Make Deposits.
2. Select the business bank account.
3. In the From Account dropdown, choose Owner's Contribution.
4. Enter the date and amount.
5. Click Save & Close.

To record the reversal, here’s how:

1. Go to the Banking tab, then Write Checks.
2. Select the business bank account.
3. In the Account dropdown, choose Owner's Draw and enter the amount and date.
4. Click Save & Close.

Recording both entries keeps your books accurate and ensures smooth reconciliation.

For more details and future reference, visit these resources:

• Add, edit, or delete accounts in QuickBooks Desktop.
• Add and match Bank Feed transactions in QuickBooks Desktop.
• Reconcile an account in QuickBooks Desktop.

Feel free to reach out if you have further concerns. We’re always here to help.