This article is part of a larger series on Accounting Software.
This guide will cover how to transfer funds in QuickBooks Online. We’ll show you how to record the transfer and then review or edit the transfer of funds in the bank account check register. You may need to frequently transfer funds between bank accounts in QuickBooks to track bounced checks, avoid overdraft issues, and maintain an accurate account balance.
Note that this course is one of our many free tutorials on QuickBooks, which is our best small business accounting software. It’s more helpful if you follow along in your own QuickBooks account, so if you don’t have one, choose from a 30-day free trial or 50% off for three months.
How To Transfer Funds in QuickBooks Online
Step 1: Open the Transfer Screen
Click on the + New button at the top of the left menu bar of your QuickBooks Online dashboard and then select Transfer from the far right column, Other, as shown below.
Step 2: Enter the Bank Transfer Information
The Transfer screen requires you to provide information, such as the originating bank account, destination bank account, and the transfer amount.
A. Transfer funds from: Select the bank account from which the funds will be withdrawn. The balance in the account selected will be shown to the right of the account. Make sure you have enough funds in the account to cover the transfer.
B. Transfer funds to: Select the bank account where the funds will be deposited. If this is a new bank account, select Add New to create a new account as shown in our tutorial on How To Set Up a Chart of Accounts in QuickBooks Online.
C. Currency: Select the appropriate currency for the funds to be transferred.
D. Transfer amount: Enter the amount of the transfer.
E. Date: Enter the date the transfer will be recorded by the bank.
F. Memo: Provide a brief description of the transfer.
When you are satisfied with the information you entered, click the drop-down box next to Save and new and select Save and close (not shown).
Entering the transfer on this screen doesn’t initiate a transfer at your bank, even if the bank account is connected to QuickBooks Online. This screen only records the transfer in your books. If both bank accounts are connected to QuickBooks Online, then you can skip recording the transfer here and accept the bank transfer uploaded from the bank feed as described in our guide on How To Manage QuickBooks Online Bank Feeds.
How To Review & Edit Bank Transfers
To review and edit a bank transfer previously entered, you must first find the transfer in your checking account register.
Step 1: Open the Chart of Accounts
To find the checking account register, hover over Accounting in the left menu bar and then click Chart of accounts.
Step 2: View the Check Register
In the Chart of Accounts, find the bank account where funds were deposited, and then click on View register in the far right column. If you prefer, you can view the register of the bank account from which the funds were withdrawn.
Step 3: Review & Edit the Transfer
Scroll to the transfer to verify that it has been recorded. By default, the register is sorted by date to make the transfer easy to find. If you need to edit the transfer, click anywhere on the transaction and then click the Edit button (not shown).
Clicking Edit will open the transfer screen where you entered the transfer originally. Make any necessary adjustments and then click Save and close.
Why It’s Important to Transfer Funds Between Bank Accounts in QuickBooks Online
Companies often have multiple bank accounts. For instance, they might have one checking account for payroll and a checking account for other activities. It’s important that you understand how to transfer funds in QuickBooks Online to ensure that you have an accurate account balance. Transfers not recorded could lead to inaccurate balances, overdrafts, and even bounced checks.
Congratulations on completing our tutorial on how to transfer funds in QuickBooks Online. The next guide in our QuickBooks Online Training Course is How To Record a Bounced Check in QuickBooks Online, which will teach you how to reverse the deposit of a customer’s bad check, restore the accounts receivable from the customer, and record any associated bank fee.