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Accounting | How To

How To Transfer Funds Between Bank Accounts in QuickBooks Online

Tim Yoder, Ph.D., CPA

REVIEWED BY: Tim Yoder, Ph.D., CPA

Tim is a Certified QuickBooks Time (formerly TSheets) Pro, QuickBooks ProAdvisor, and CPA with 25 years of experience. He brings his expertise to Fit Small Business’s accounting content.

 

WRITTEN BY: Mark Calatrava

Published June 23, 2022

Mark has researched and reviewed accounting software at Fit Small Business since 2019 and has developed an extensive knowledge of accounting software features and how unique business needs determine the best accounting software.

Published June 23, 2022

This article is part of a larger series on Accounting Software.

Learn More With Our QuickBooks Online Course
Explore the chapters in the guide.
  1. How to Set Up QuickBooks Online
  2. Part 1: Setting Up QuickBooks
    1. How to Set Up Company Information
    2. How to Customize Invoices, Sales Receipts & Estimates
    3. How to Set Up Invoices, Sales Receipts & Estimates
    4. How to Set Up Products and Services
    5. How to Set Up Messages
    6. How to Set Up Statements
    7. How to Set Up Expenses
    8. How to Set Up Advanced Settings
  3. Part 1: Setting Up QuickBooks (Cont.)
    1. How to Import Bank Transactions
    2. How to Import Credit Card Transactions
    3. How to Set Up Multiple Users
    4. How to Set Up the Chart of Accounts
    5. How to Set Up the Products and Services List
    6. How to Set Up Customers
    7. How to Set Up Vendors
  4. Part 2: Managing Sales and Income
    1. How to Create Estimates (Quotes or Bids)
    2. How to Create and Send Invoices
    3. How to Receive Payments
    4. How to Create & Send Sales Receipts
  5. Part 3: Managing Bills and Expenses
    1. How to Write & Print Checks
    2. How to Enter Bills
    3. How to Pay Bills
  6. Part 4: Managing Banking Transactions
    1. How to Enter Banking Transactions Manually
    2. How to Manage Downloaded Banking Transactions
    3. How to Record Bank Deposits
    4. How to Transfer Funds Between Bank Accounts
    5. How to Handle Bounced Checks From Customers
    6. How to Process Bank Reconciliation
  7. Part 5: Managing Business Credit Card Transactions
    1. How to Enter Business Credit Card Transactions Manually
    2. How to Manage Downloaded Business Credit Card Transactions
    3. How to Enter a Credit Card Refund
    4. How to Reconcile Business Credit Card Accounts
  8. Part 6: Managing Credit Card Sales
    1. How to Manage Credit Card Sales With QuickBooks Payments
    2. How to Manage Credit Card Sales With a Third-party Credit Card Processor
  9. Part 7: Set Up and Manage Payroll
    1. How Set Up and Run Payroll
    2. How to Manage Payroll Tax
    3. How to Add Historical Payroll Data
    4. How to Set Up Automatic Deposits
    5. How to Print Payroll Checks
    6. How to Run Payroll Reports
    7. How to Reconcile Payroll Liabilities
  10. Part 8: Reporting in QuickBooks Online
    1. How to Run a Profit and Loss Statement
    2. How to Run a Balance Sheet Report
    3. How to Run a Statement of Cash Flows
    4. How to Run an A/R Aging Report
    5. How to Run an A/P Aging Report

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.

Visit QuickBooks Online

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.

Record an account transfer in QuickBooks Online

Record an account transfer in QuickBooks Online

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.

Enter bank transfer information in QuickBooks Online.

Enter bank transfer information in QuickBooks Online

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).

Tip:

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.

Navigate to Chart of Accounts in QuickBooks Online.

Navigate to Chart of Accounts in QuickBooks Online

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.

Quickbooks Online view check register.

View the check register in QuickBooks Online


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.

Wrap Up

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.

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About the Author

Mark Calatrava

Find Mark OnLinkedIn

Mark Calatrava

Mark Calatrava is an accounting expert for Fit Small Business. He has covered more than 50 accounting software for small businesses and niche industries and has developed an in-depth knowledge of the important features of accounting software and how the importance of these features vary by business.

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