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J
Jack Bauer
May 7, 2022
Question

Transfer Funds between bank accounts issues

  • May 7, 2022
  • 8 replies
  • 81 views

Someone help please! Newbie here, took me a bit to decide if QBO is worth it. I got done with setup, but noticed issues when I checked the balance sheet report--my checking account is a negative (I was told this should not happen)!

First a quick background as this might be pertinent. I have an UMBRELLA business A, holding a PROPERTY business B (which hold a rental property). They both have their own checking accounts. So renter pays their rent, gets deposited to business B, then transfers some funds to business A, which pays off a HELOC/long term liability loan.

 

Going from business B to business A, it is just recorded as (click of) TRANSFER of FUNDS for the appropriate business accounts. After rent payment, business B gets a deposit. But the transfer doesn't have any real entry? Not sure about terms. But then business A gets an expense in terms of payment of longterm liability/HELOC. I think this is causing the negative in the business accounts. Appreciate the help in advance!

    8 replies

    C
    Charies_M
    Level 9
    May 7, 2022

    Thanks for reaching our Community support, Jack Bauer.

     

    You can use the Transfer option to transfer funds between your accounts. I'll show you the steps below:

     

    1. Go to the +New icon.
    2. Under Other, choose Transfer.
    3. Enter the necessary information.
    4. Click Save and close.

    Check out this article to learn more about transferring funds: Transfer funds between accounts.

     

    Since you're new to QuickBooks, we have easy-to-access articles, webinars, and video tutorials that will help you in familiarizing the different tasks, features, and functions of QBO. Below are the following:

    Get back to me if there's anything I can help you with during the process of fund transfer. I'd be happy to assist you further. Enjoy the rest of the day.

      J
      Jack BauerAuthor
      May 7, 2022

      Thank you so much Charies for the reply. I may not be explaining clearly I apologize. The funds have been transferred using the "mark as transfer (or something like that)" button on the Categorize tab. And I double checked they are the correct bank accounts that are used for the transfer. My issue is the bank accounts are showing up as negative on the balance sheet after the money flow I explained in my post. I'm wondering if it's the transfer funds button that is causing this, and what to do with it. Thank you again. 

      J
      Jack BauerAuthor
      May 10, 2022

      Allow me to step in and share some insights to ensure your bank accounts have correct balances, Jack Bauer.

       

      You need to manually categorize transactions downloaded from your bank. 

       

      QuickBooks will only automatically categorize them if you have set up a bank rule. Check out this article if you need to learn more about this: Set up bank rules to categorize online banking transactions in QuickBooks Online.

       

      Also, you don't need to enter a journal entry since you only need to make sure that your transfers are categorized under income, not expenses. That way, your bank accounts won't have negative balances.

       

      To help categorize your bank transactions, please browse this article as your guide: Learn how to review downloaded bank and credit card transactions and put them in the correct accounts.

       

      I'm also adding this article in case you need help with tracking loan payments: Set up a loan in QuickBooks Online. It'll show you one way to put the loan money into your bank account.

       

      Stay in touch with me if there's anything else you need. I'll be right here to guide you.


      Thank you again everyone. I've watched all the videos suggested. My issue is the RECORD AS TRANSFER button on the categorize tab. When I use this, it seems to not record it as a deposit on the receiving account. Or something like that. Wondering if the issue is the 2 bank account the money flows through before the umbrella business pays the loan (as an example). I realize it doesn't make sense to record the same money recorded as income when RENTER pays BANK/BUSINESS B which transfers it to BANK/BUSINESS A which pays a HELOC loan in the end. As a side note, it is set up like that for asset protection. Thanks for the patient everyone! --noob

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