This topic contains 1 reply, has 0 voices, and was last updated by Crystalynn Shelton 1 year, 12 months ago.
Sean Meister 1 year, 12 months ago
How do I record a transfer between bank accounts when a check was written?
I will try and explain the problem I am having as clear as possible. We are receiving sales money into 1 bank account, then I am writing a hard copy check for that amount to another bank account we have. So there are 3 transactions that show in quickbooks for this
– the original deposit into bank 1
– the check written from bank 1 to bank 2 as an expense
– then the deposit into bank 2 as another transaction
I have searched out for answers and I am familiar how to record a transfer between 2 bank accounts, but what i am not clear on is the fact that I wrote a check to do the transfer and have 3 transactions showing between 2 bank accounts. Obviously this is creating a duplication of income/deposit for me. How do i only show 1 deposit for this and what do i do with the expense transaction that the check i wrote is creating?
PLEASE HELP?!1 Reply
Crystalynn Shelton 1 year, 12 months ago
Based on the info that you have provided, it sounds like you can just eliminate writing the check to Bank account #2 and just create a transfer in QuickBooks. The only reason why you would not be able to do a transfer is if bank account #2 is a personal bank account or an account not associated with the business. If that is the case, then you do have to write a check to deposit to Bank account #2, but it should not go to an expense account. Instead, it should go to an account called Owner Draw (this is an equity account that you can set up on your chart of accounts to track personal withdrawals by the owners of the business).
On the other hand, if Bank account #2 is in fact just another business account, then eliminate writing a check and just perform the steps to make a bank transfer in QuickBooks going forward. When you make a transfer in QB, it just moves the money from one bank account to another and there is no other account needed.
All the Best-
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