I am reconciling my quickbooks account and am manually entering various transactions. When monies are transferred from one account to another, is this a CREDIT to the receiving account? Thank you.
Thanks for your question. When you transfer money between accounts in Quicken or Quickbooks, deciding whether a transaction is a debit or a credit to the receiving account depends on what kind of account the money is going into. Debits are transactions that increase cash or expense accounts or decreases in liability or equity accounts. Credits are increases in liabilities or equity or decreases in cash or expense accounts.
This means that, for example, if you have a transfer moving money out of a checking account (cash account) to partially pay down a line of credit (liability), this transfer would be a credit in your cash account and a debit in your loans payable (liability) account.
For more information on transferring money in Quickbooks accounts, be sure to check out our tutorial on How to Transfer Money in Quickbooks Online (https://fitsmallbusiness.com/transfer-funds-between-bank-accounts/). If you have other questions or would like additional guidance, we have a whole series of Free Quickbooks Online Tutorials that may provide additional help: https://fitsmallbusiness.com/free-quickbooks-online-tutorials/
Hope this helps,
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