Beginner question - Match vs Transfer?

Toni O · ‎June 28, 2024

Hi there

This is probably a stupid question - I'm just getting started so bear with me.

When I have a transfer between two of my bank accounts, I don't know if I'm supposed to use "Match" (suggested by QB) or record it as a transfer.

The aim is to make sure that the money going from one account to another is not seen as an income or expense, but a transfer.

The terminology is also confusing me. I think of a bank "account" as an account with my bank, but QB refers to "accounts" as an income or expense category, for example like "subscriptions".

So when I refer to transfer between accounts, I mean my bank accounts.

I hope this makes sense.

I'd appreciate some assistance!

JaeAnnC · ‎June 28, 2024

I'll clear up your confusion about the differences between match and transfer in QuickBooks Online (QBO), @Toni O.

To record the money movement between two bank accounts, yes, you'll need to record it as a transfer.

However, if the transaction is downloaded from both bank accounts on your online banking, record the transaction as a transfer and match it to avoid duplicates.

I'll share these pointers for more details about the differences between the two functions:

Moreover, the word "account" in QBO is a general term that keeps track of your transactions and shows your balances. A bank account is one of the account types or detail types.

Additionally, you'll want to reconcile your accounts in QBO to ensure they match your bank statements.

We'll be happy to explain further if you have clarifications about the match and transfer options in QBO. Just click the Reply button and we'll chime in to answer right away. Stay safe.

View solution in original post

MirriamM · ‎June 28, 2024

You're correct in handling your transactions, Toni.

When you transfer money, it impacts two separate accounts. Since both of these bank accounts are linked to your online banking, thus, it's natural that you need to match the transaction separately from each register. You can review the balances of each account to confirm that it has a correct balance.

Regarding your other example, it follows the same matching principle as your current situation.

For future reference, here's an article you can check for the best practices when reconciling your account: Reconcile an account in QuickBooks Online. It also offers guidance on addressing challenges during the reconciliation process.

If you have additional concerns about managing your transactions, feel free to reach out to the Community, Toni. Have a wonderful day!

View solution in original post

JaeAnnC · ‎June 28, 2024

I'll clear up your confusion about the differences between match and transfer in QuickBooks Online (QBO), @Toni O.

To record the money movement between two bank accounts, yes, you'll need to record it as a transfer.

However, if the transaction is downloaded from both bank accounts on your online banking, record the transaction as a transfer and match it to avoid duplicates.

I'll share these pointers for more details about the differences between the two functions:

Moreover, the word "account" in QBO is a general term that keeps track of your transactions and shows your balances. A bank account is one of the account types or detail types.

Additionally, you'll want to reconcile your accounts in QBO to ensure they match your bank statements.

We'll be happy to explain further if you have clarifications about the match and transfer options in QBO. Just click the Reply button and we'll chime in to answer right away. Stay safe.

Toni O · ‎June 28, 2024

Thanks so much @JaeAnnC for your speedy and helpful response!

I'm not quite clear, so let me see if I can get this...

I have recorded the transaction as a transfer and it shows in the column "Added or matched" as a transfer. When I go into the detail, it shows a link to "2 online banking matches" and if I click this I see two entries, one is "manually added" and the other is "manually matched", with the option to unmatch.

So I presume that I did it right?

I can't remember if I chose "match" before designating it as a transfer!

As you can tell, I'm a bit confused 🤯

To take another example, if I had a short term loan I paid to someone from one account, and then they paid me back into another account, I would like to record this so as not to show it as an income, but as a repayment of the loan. Would the same matching principle apply here?

Thanks

MirriamM · ‎June 28, 2024

You're correct in handling your transactions, Toni.

When you transfer money, it impacts two separate accounts. Since both of these bank accounts are linked to your online banking, thus, it's natural that you need to match the transaction separately from each register. You can review the balances of each account to confirm that it has a correct balance.

Regarding your other example, it follows the same matching principle as your current situation.

For future reference, here's an article you can check for the best practices when reconciling your account: Reconcile an account in QuickBooks Online. It also offers guidance on addressing challenges during the reconciliation process.

If you have additional concerns about managing your transactions, feel free to reach out to the Community, Toni. Have a wonderful day!

Toni O · ‎June 28, 2024

Thanks so much for confirming! 🥳

JorgetteG · ‎June 28, 2024

We appreciate you for coming back, Toni.

I'm delighted to hear that the information provided effectively addressed your concern. Our utmost priority is to consistently offer you the assistance you require.

Please don't hesitate to reach out if you need further support or have any QuickBooks-related concerns. We are always here to provide you with the necessary help and support.

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Beginner question - Match vs Transfer?