Moving money from bank to another

walton123 · ‎April 12, 2021

My client fired their previous bookkeeper and hired me. I opened a new bank account for them and began using it. The previous bookkeeper had a checking account for my client in a different bank, and kept it open while bills were being processed during the transition. Now the checks for the other bank account have cleared and they wrote a check for the balance of the account, payable to my client.

How do I record the check that they wrote my client. It is not a transfer, and it is not a bill, so what is it? Do I need to make a journal entry, and if so what would it be?

How do I record the check deposit to the new account in the different bank that I set up?

MichelleBh · ‎April 12, 2021

Thanks for the quick response, @walton123.

Let me provide clarification of what my colleagues shared about moving money from one bank to another in QuickBooks Online (QBO).

No, you don't need to post this question to a different team. As my colleagues shared, we're unable to recommend specific journal entry and bank deposit accounts to use. This is because it's already an accounting topic.

I'd recommend consulting an accountant to help you determine the exact account to be applied. This way, your account, and books will stay accurate. If you don't have one, I can help you find one. You may visit this link: Find an Accountant.

You can always run the Deposit Detail and Journal Entry Reports. This way, you can review all the data you've entered into the system. Then customize it to show the exact details.

Additionally, feel free to visit the links below about the various reports offered in QBO and other banking topics.

Please come back to this thread if you have further questions about handling bank accounts. I'm willing to help you. Keep safe.

View solution in original post

JessT · ‎April 12, 2021

Hi walton123,

Thank you for posting in the Community! I'll be happy to discuss your options to record the deposit.

You can record the transaction by entering a journal entry and adding the check details in the memo section. However, we are unable to advise on the accounts to be used because that's an accounting topic already.

Alternatively, you can directly deposit the money to the new checking account, but you have to determine the correct category for it as well. I got a sample below.

You may also want to check about bank reconciliation.

lf you have other questions about your transaction, feel free to go back to this thread.

walton123 · ‎April 12, 2021

Do you mean that I need to post this question to a different team?

MichelleBh · ‎April 12, 2021

Thanks for the quick response, @walton123.

Let me provide clarification of what my colleagues shared about moving money from one bank to another in QuickBooks Online (QBO).

No, you don't need to post this question to a different team. As my colleagues shared, we're unable to recommend specific journal entry and bank deposit accounts to use. This is because it's already an accounting topic.

I'd recommend consulting an accountant to help you determine the exact account to be applied. This way, your account, and books will stay accurate. If you don't have one, I can help you find one. You may visit this link: Find an Accountant.

You can always run the Deposit Detail and Journal Entry Reports. This way, you can review all the data you've entered into the system. Then customize it to show the exact details.

Additionally, feel free to visit the links below about the various reports offered in QBO and other banking topics.

Please come back to this thread if you have further questions about handling bank accounts. I'm willing to help you. Keep safe.

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Moving money from bank to another