Learn how to record a transfer between two accounts in QuickBooks Online.
When you move money from one account to another, you'll need to record the transaction as a transfer in QuickBooks. To keep your books in good shape, you should enter the transfer as a single transaction that affects both accounts. We’ll show you how to record transfers and best practices to avoid mistakes.
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You can transfer funds between two accounts using any of the following methods:
Record a new transfer
If you haven’t imported the transaction from your bank yet, here’s how to record a money transfer directly in QuickBooks:
- Select + New.
- Select Transfer.
- From the Transfer Funds From dropdown list, select the bank account that the money is coming from.
- From the Transfer Funds To dropdown list, select the bank account that the money is going to.
- In the Transfer Amount field, enter the amount being transferred.
- Edit the Date field.
- Enter a description of the transfer in the Memo field (optional).
- Select Save and close or Save and new to complete the transfer.
- Select Yes if you double checked the date.
You can find the recorded transfer by checking each account register in the chart of accounts.
Record a transfer by cheque
If you used a physical cheque to transfer funds, here's how to record the transfer and the cheque number:
- Select + New.
- Select Cheque.
- Enter the cheque as you normally would, including the cheque number.
- From the Bank Account field, select the account the funds are coming out of.
- From the Category column, select the account the funds are going into.
- Select Save and new or Save and close to record the cheque.
Match a transfer in your imported bank transactions
Once you've downloaded transactions from both accounts, you can categorise and match the transfer. First, record the transaction as a transfer from one account:
- Go to Transactions and select Bank transactions (Take me there).
- Select the bank account that the funds are coming from.
- Find and select the transaction to open it.
- Select Record as transfer, then, from the Transferred to dropdown, select the account where you transferred the funds.
- Select Add.
Then, match the transaction from the other account:
- Select the bank account where the funds are going.
- Select the For review tab. Then, select the Recognised filter from the dropdown.
- Find the transaction. From the Action column, select Match so the transaction is matched in both accounts.
