I have question regarding how to categorize transfer funds when I’m closing one business account and opening a new business account! For example I want to write a check to transfer all my money from QuickBooks account A to QuickBooks account B! It’s not on the same QuickBooks! What category the transfer fund from account A should be used!
Just to confirm, same business, you're just closing one account and opening a new one...
Just simply go to your Chart of Accounts and Create the new Bank Account. Give the account a name, I like to add the Acct# if you have multiple Accs at the same bank (even if you call them Checking, Money Market or whatever). And fill in all the other needed info to create the Acct.
If you went to a new Bank, then I'm assuming you wrote a check to that new Bank and the associated Acct is the NEW Bank Acct you created in QBs. The new Bank Acct now shows a Deposit from the old bank account.
If it's the same Bank, just a new Account, it's basically the same thing. But I'd show it as a Transfer since no Check was written.
In the old Bank Acct I'd put something in the Memo Field like: Account closed 02/17/22. Yes, the Acct shows a $0 balance, but the date is when you OFFICIALLY CLOSED the Acct with the Bank.
It’s different Business, to be more clear it’s two different EIN so they are not on the same QuickBooks! I’m prepared new QuickBooks account but the check transfer from the one I’m closing not sure how should be categorized!
Yes, if two companies then probably Equity. (Could be a Loan depending upon how they wanted to deal with it if the first company will still be in existence.)
Even if both companies are owned by the same person(s), run it by the Tax Accountant. They may have additional thoughts.