Welcome to the Fit Small Business QuickBooks Online training course! In this lesson, we’re going to cover how to transfer funds between bank accounts in QuickBooks Online.
You can follow along on your own QuickBooks Online account. If you don’t have one already, click here to sign up for a free 30-day trial and follow along below.
To complete this lesson, you can either watch the video below, read through the step-by-step instructions, or do both. Let’s begin!
Before we get started with the lesson, it’s worth mentioning that there are affordable virtual bookkeepers that can set-up and manage your QuickBooks for you. They will even help you get caught up if you are behind. For example, SmartBooks offers help with cash flow management, monthly financial statements, payroll processing and more starting at $250/month. Get a free consultation to learn more.
Why Is It Important to Transfer Funds in QuickBooks Online?
Business owners often use different bank accounts for different purposes and need a quick and easy way to transfer funds. In this lesson, we will walk through step by step how to transfer funds between business bank accounts that are setup in QuickBooks.
Note: As a business owner, you may find yourself in a situation where you need to provide a loan to your business out of your personal funds or you may need to withdraw money from the business for personal expenses. In the “real world”, you would probably transfer money from one account to the other. However when it comes to QuickBooks, you will not be able to record a transfer since your personal bank accounts are not set up in QuickBooks.
Instead, you will need to write a check in QuickBooks to record transfers to and from personal bank accounts. In the how to write and print checks lesson, we walk through step by step how to create checks in QuickBooks.
How Do I Transfer Funds in QuickBooks Online?
Step 1 – Navigate to Transfers
From the Home page, click on the plus sign at the top. Below the Other column, select Transfer as indicated below.
Step 2 – Enter the Bank Transfer Info
The Transfer Funds window will display. Complete the fields as indicated below.
- Transfer Funds From – select the bank account that the funds will be withdrawn from.
- Transfer Funds To – select the bank account where the funds will be deposited.
- Transfer Amount – enter the transfer amount.
- Date – Select the date that you made the transfer with your bank.
- Memo – enter a description here or the transfer confirmation number.
- Balance – this is the balance of the account you selected in item #1 before the transfer.
- Balance – this is the balance of the account you selected in item #2 before the transfer.
Review the Transfer in the Check Register
Once you’ve completed the transfer, it’s time to review it in your check register to make sure everything is accurate.
Step 1 – Navigate to the Check Register
Click on Transactions and then Banking from the left menu bar as indicated below.
Click on the Go to Register link as indicated below.
Step 2 – Review the Transfer
The most recent transactions will always appear at the very top. Review the information to ensure accuracy.
How Do I Edit (Modify) a Bank Transfer?
Step 1 – Find the Transfer
From the Check Register, click on the transfer and click on the edit button as indicated below.
Step 2 – Make Necessary Changes and Save
The Transfer window will display. Make any necessary changes and Save them as indicated below.
What Impact Do Bank Transfers Have on My Financial Statements?
When a transfer is recorded in QuickBooks the accounts and financial statements are affected as follows:
|Account Affected||Impact on Account||Financial Statement|
|Bank account transferring to||Increase||Balance Sheet|
|Bank account transferring from||Decrease||Balance Sheet|
That wraps up the section on how to record bank transfers in QuickBooks Online. The next lesson in our QuickBooks Online Training Course will be how to record bounced checks. In this lesson, we will walk you through how to record bounced checks from customers.
To access this lesson or any of the others in the series, click here. Or, click here for a free 30-day trial of QuickBooks Online.
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