Moving Money Between Bank Accounts is NOT Income in QuickBooks

Contrary to what your friends may have told you, the process of moving cash from one bank account to another within the same business is NOT income when it comes to recording the transaction in QuickBooks (though that would be nice for sure!).

Rather, all that is being done in this case is the transfer of funds from one asset account to another within the same business.

Example - a business transfers $10,000 from a Checking account into a Savings account to put the money away for a rainy day.

In QuickBooks, there are two ways to go about recording this transfer in your accounting records:

1. Use the Transfer Funds button found in the Banking option in the menu bar.
   
    
2. Use the Write Checks window

 

Either option gets the job done for you. Option 1 is probably easier if you move the money via an online electronic transfer and Option 2 is easier if you are actually making a physical deposit of a check at the bank.

Even better, by using either of the options above, your accounting records will properly reflect the transaction being made. No more will you have a profit and loss report showing income that doesn't exist.

In a future post, I'll discuss how to move money between bank accounts that exist in different businesses.

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Comments

[Scott Gregory, QuickBooks Expert]

Prima:

If it is showing up as duplicate income, that means something is incorrect along the way.

You may be interested in a short coaching session to help you resolve this problem. Details:
http://blog.betterbottomline.com/Coaching/Scott_Gregory_QuickBooks_Services.pdf

Scott Gregory

[Prima]

I did method 2 above writing check from one account to the other, yet it still shows up as duplicate income on the P & L. Using QB for MAC 2013

[KDS]

I have a related question. I imported my Bank Account records via Export command. For each of the imported transactions, I have to associate them with an Income or Expense account.

But, I have a bunch of these bank transactions that are simply transfers from Checking to Money Market account. So, they aren't income or expense. They are just shuffling money from an interest bearing account to a non interest bearing account.

Any idea how to handle this. I am in the Banking.... Use Register area .

[christian louboutin]

Even better, by using either of the options above, your accounting records will properly reflect the transaction being made. No more will you have a profit and loss report showing income that doesn't exist.

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