Transfer funds between bank accounts

There may be times when you need to transfer funds between your bank accounts, for example, transferring money from your business saving account to your credit card account.

If you are manually recording the bank transfer, you will:

1. Go to Banking … Transactions … Banking.

2. Select the Paid from Bank Account – this is the bank account you want to transfer funds from.

3. Complete the following information on the transaction line:

Date Choose the date when the transfer is made.
Payee (optional) If required, enter the payee name that you transfer the funds to.
Description Enter the transfer description.
Type Select “Transfer”
Selection Select the bank account you want to transfer the funds to.
Reference (optional) If required, enter a reference number for the transfer.
Tax This is a ‘No Tax’ transaction.
Spent Enter the amount of the transfer.

For example, you have transferred $3000.00 from your Business Account to Credit Card account. To record this entry, you will go to the “Business Account” and record the entry as below.

On your Credit Card account, this transfer will be automatically recorded as “received” from Business Account. Users do not need to create double entries.

If you have automatic bank feeds setup, the transfer will be downloaded to your bank account automatically.

1. Select the ‘Transfer From’ bank account and record the entry as per below:

Type Select “Transfer”.
Selection Create a new bank account named “Transfer clearing account” and select this account.

2. Now go to the ‘Transfer To’ bank account and record the same.

3. Using a ‘Transfer clearing account’ will help you to easily reconcile the transfers made between your bank accounts. This account should always have a zero balance if you completed the allocations on both sides.