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Intuit
3 helpful votes

Transfer funds between companies

Learn how to move money from one company to another.

If you have more than one business and need to transfer funds from one to the other, it is important to remember that you are recording a two-sided transaction — you are transferring funds out of one business, and receiving funds into the other business.

Note: You should consult your accountant or tax professional to be sure you record these transactions in the correct accounts based on your specific circumstances.

Although this transaction seems like a transfer, because both accounts are not in the same company files, these transactions have to be recorded as an expense or a cheque from one company, and deposited by the other company.

In some circumstances, this may be a loan from one company to the other, so it may increase a liability account and create an asset in the other company rather than simply increasing and decreasing equity.

Transfer funds

To transfer funds to the other company:

  1. Select Create ⨁.
  2. Under Suppliers, select either Cheque or Expense.
  3. Select the bank account the funds are coming from.
  4. Enter the Payee, Payment Date, and the Payment Method (optional).
  5. Under Category details, in the Category column, select an Asset or an Equity account to reflect the funds going out of the business.Note: It's a good idea to consult an accountant or tax authority to be sure to select the correct account.
  6. Enter the amount to be transferred in the Amount column.
  7. Select Save and close or Save and new.

The transfer is recorded as a cheque or expense coming out of the company.

Receive transferred funds

To receive funds transferred from the other company

  1. Select Create ⨁.
  2. Under Other, select Bank Deposit.
  3. Select the bank account the funds are going to.
  4. Enter the Date.
  5. In the Add funds to this deposit section, optionally specify who the funds were Received From.
  6. From the Account column ▼ drop-down menu, select an Equity or a Liability account to reflect the funds coming into the business.Note: It's a good idea to consult an accountant or tax authority to be sure to select the correct account.
  7. Enter the amount received in the Amount column.
  8. Select Save and close or Save and new.

The transfer is recorded as a deposit coming in to the company.

To learn more about keeping personal accounts out of the business, see About mixing business and personal funds.

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