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Level 1

Changing banks for company checking account

Hi, We are switching banks for our checking account.  Owner wrote a check from the old bank account & then did a mobile deposit to put some money into the new bank account. (Just a trial deposit - not a full transfer of the account.)  I currently have the check in as an expense w/ the category as opening balance equity.  The new account shows a deposit transaction also with the category of opening balance equity.  HOWEVER....I had to exclude the mobile deposit transaction that came in on the new account's bank feed to QB because if I kept it then the amount was in twice.  Also, I manually changed the transaction in the new account's bank register from "R" reconciled to just "C" cleared.  I don't understand how that transaction got there & was labeled as reconciled without me doing it.  So all this is giving me the red flag that I did something wrong.  If someone could tell me what to do I'd appreciate it.  Also, I suppose I should also ask how to categorize things when the full transfer is done to complete the transition in the future.  Thanks in advance.

2 Comments
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Community Champion

Changing banks for company checking account

"Transfer" is the key word. Moving money between bank accounts is neither income nor expense. Just a transfer. Your are crediting one current asset to debit another.

 

Opening balance equity ONLY comes into play when you first start recordkeeping

Highlighted
Level 1

Changing banks for company checking account

Initially I did think it would just be a transfer.  But I don't know how the written check gets addressed in QB.  Entering a transfer just asks which accounts & the amount.  Just putting the check number in the memo won't account for the written check.

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