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Transfer funds between accounts

Learn how to record a funds transfer between two accounts.

When recording a funds transfer between two accounts, the most common mistake to make is accidental duplication.

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 check in one account and a deposit in the other.

You can create a transfer between two accounts using any of the following:

  • Transfer
  • Check
  • Imported Bank Transaction
  • Journal Entry

Using the Transfer feature is the easiest way to transfer funds, and the easiest to recognize in the bank register. However, if you used a check to transfer the funds, use the Check feature so you can record a check number.

The following sections outline the steps involved in each method.

Use Transfer

Using Transfer is probably the easiest way to record a transfer of funds.

To transfer money using the Transfer funds feature:

  1. Select + New.
  2. Under Other, select Transfer.
  3. From the Transfer Funds From drop down list, select the bank account that the funds are coming out of.
  4. From the Transfer Funds To drop down list, select the bank account the funds are being deposited into.
  5. In the Transfer Amount field, enter the amount being transferred.
  6. Edit the Date.
  7. (Optional) Enter a description of the transfer in the Memo field.
  8. Select Save and close or Save and new.
  9. The funds are transferred as you specified.

    Transfer with Write Check

    If you used a check to transfer funds, you can use the Write Check window to record the transfer of funds and the check number.

    To do so, fill out the check as you normally would.

    When entering information about the check, make sure you have selected the account the funds are coming from in the Bank Account field, and that you have specified the account the funds are going to in the Category column of the Category details section.

    Use an imported bank transaction

    If you have imported transactions for both accounts and have already entered a Transfer, you can match the imported transaction in both accounts.

    If you have imported transactions for both accounts and you have not entered a Transfer, the easiest way to add the transaction is to transfer from one of the accounts and then match the transaction from the other account.

    To do so:

    1. Select Banking.
    2. Ensure that you have selected the bank account to transfer from.
    3. Locate and select the transaction to open it.
    4. Select the Record transfer radio button and select the other account from the Select transfer account drop-down list.
    5. Select Record transfer.
    6. Select the bank account to which you transferred the transaction.
    7. Select the Recognize tab and locate the transaction.  The Category/Match column should indicate a match was found.
    8. From the Action column, select Match.

    The transferred transaction is matched.

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