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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 11, 2022

      Hello, Jack. 

       

      I'd like to step in and shed some light about the transfer process. 

       

      The general rule of the thumb is that we want to follow what happened in real life. And yes, transfers are normally recorded as "Transfer" in the checking account's register instead of "Deposit." 

       

      Now, let's go back to the negative balances issue. In the Banking Feeds, a different transaction may have been selected so it's one thing to take note of.

       

      If this is the case, we'll want to go to the Categorized tab and click on Undo to remove the entry. 

       

      Review the downloaded and categorized entries, and if you manually uploaded those transactions, check the Spent and Receive amounts. 

       

      QuickBooks will automatically determine the transfer amounts and pair the transfer entries together as seen here: 

       

       

      Another reason is that when setting up those checking accounts, an opening balance may not have been entered. This can cause some issues on the succeeding entries when recording them. 

       

      In this case, we can enter a journal entry to add the balances on your business checking account. We can take a look at this article as a guide: What to do if you didn't enter an opening balance in QuickBooks Online. 

       

      Let's also make sure that the loan entries and the corresponding payments are recorded properly. I see that my colleague had linked the article. Just for convenience, we can review the steps here: Set up a loan in QuickBooks Online.

       

      After correcting the balances and recording the entries, we can take a look at the videos if you need help with QuickBooks Online (if you haven't checked them out yet): Tutorial videos. 

       

      If ever you need help with the reconciliation process, let's take a look at this guide for more details: Reconcile an account in QuickBooks Online.

       

      I'm ready to help again if you have more questions about your entries. Do you have concerns in setting up your QuickBooks Online account? Let me know and I'll gladly lend a hand. 


      I tried exactly this but it looks like I did it right the first time. Thank you first for the detail and screen shots, they were extremely helpful. The problem remains in the balance sheet.

       

      I think I found out the problem (not necessarily the solution). 

       

      My QBO setup in the plus subscription uses LOCATIONS for the holding business (business A) and CLASSES for the property holding businesses (business B). There are 2 total locations and a few classes below the locations.

      So what I did was make a balance sheet which filters them via LOCATIONS. I want to see the balance sheet specific to each umbrella business (business A in our example).

       

      The default balance sheet actually has correct positive numbers. It's when I used my customized balance sheet, filtered out via LOCATIONS that the problem exists. Typically when I categorize any transaction I specify locations and classes. There is not an option like this when I RECORD as TRANSFER.

       

      I know I'm now off topic, but thoughts? Solutions? Thanks everyone. I think I'm close.

       

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