How do I clear internal transfers that are not reconciled?

Hi there, @Anonymous.

I'd be glad to help you clear the internal transfers that are not reconciled in QuickBooks Online (QBO).

First, please ensure that your trust account have been created in QBO so transactions made by the trust account can be recorded and reported properly. Any transactions initiated by the bank or shows in your bank statement should be included on your reconciliation as this affects the bank balance. Clearing this may cause incorrect balances to the actual bank balance.

However, if the trust account was already set up or created in QBO, you may need to manually clear the transactions. For the detailed steps and instructions, you may check this article: Manually clear, unclear, reconcile, or unreconcile individual transactions.

On the other hand, to learn more about reconciling accounts, you can also check these articles:

• About bank or credit card subaccount setup
• How to reconcile accounts

Don't hesitate to add a post/comment below if you have any other banking or reconciliation questions. I'll be always here to help you!

Since your Bank Account includes the balance in each trust account, you are not really transferring funds in and out of the Bank account. You do need to reconcile the Bank Account so you cannot include transfers between the Bank account and each Trust account that don't occur.

If each Trust account is entered as an Asset with a Balance, you are overstating your Assets since the Trust account balances are already included in the Bank account.

Are you trying to track which trust account covered an expense?  Two suggestions to track Trust expenses:

If you create an expense account for each Trust Account, then subaccounts for (for example) Utilities, Professional Fees, etc as subaccounts of each Trust expense account, the expense account will track the expenses for each Trust Account and subsequently show up on the Profit & Loss.

You can also use Classes. When you enter expenses you assign a Class to that expense. You can run a Profit & Loss by Class.  You would want a Class for each trust.  Also consider a Class for expenses covered by the bank account but not associated with a specific trust. This lets you easily run a Profit & Loss and compare it to a Profit & Loss by Class ensuring you captured all expenses.

Another solution is opening a bank account for each Trust account which you probably already eliminated as an option.

To use Classes, under EDIT>PREFERENCES>ACCOUNTING check the box next to Use class tracking for transactions

Classes will now display under LISTS where you can add and edit.