Learn how to record a transfer between two accounts in QuickBooks Online.
When you move money from one account to another, you will need to record the transaction as a transfer in QuickBooks. We’ll show you options for how to record transfers and best practices to avoid mistakes.
Learn more about transfers
When recording a money transfer between two accounts in QuickBooks, accidental duplication of the transaction is a common mistake.
If both accounts appear in your Chart of Accounts (they usually do), you must enter the transfer as one transaction that affects both accounts, rather than entering a cheque in one account and a deposit in the other.
You can create a transfer between two accounts using any of the following:
- Transfer
- Cheque
- Matching imported bank transactions* (only available if you have one or more connected banks)
- Journal Entry (Check with your accountant before making a journal entry)
Record a new transfer
If you haven’t imported the transaction from your bank yet, the easiest way to record a transfer of funds is to use Transfer in QuickBooks. Here’s how to record a money transfer:
- 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 opening each account register in the Chart of Accounts.
Record a transfer using Cheque
If you used a physical cheque to transfer funds, you can record the transfer and the cheque number using the cheque window.
- 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
If you have imported transactions in your banking feed for both accounts that aren't entered as a Transfer in QuickBooks, you can record it as a transfer from one account. Then you can match the transaction from the other account. Here’s how to use Match in your banking feed:
- Go to Bookkeeping, select Transactions, then select Bank transactions (Take me there) .
- Select the bank account that the transaction is coming from.
- Find and select the transaction to open it.
- Select the Record as transfer radio button. Then, from the Transfer account dropdown, select the account the money was transferred to.
- Select Record transfer.
- Select the bank account to which you transferred the transaction.
- 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.
