QuickBooks 2005: The Missing Manual

Transferring Funds

With the advent of electronic banking services, transferring funds between accounts has become a staple of account maintenance. Companies stash cash in savings and money market accounts to earn interest and then transfer money into checking right before they pay bills.

Fund transfers have nothing to do with income or expenses—they merely move money from one balance sheet account to another. For example, if you keep money in savings until you pay bills, the money moves from your savings bank account (an asset account in your Chart of Accounts) to your checking bank account (another asset account). Your income, expenses, and, for that matter, your total assets, remain the same before and after the transaction.

Figure 12-6.  in the Type cell.

Transferring funds in QuickBooks is easy whether you use the Transfer Funds dialog box or enter the transaction directly in an account register. The steps for creating a transaction in an account register appear on page 328; here's how you use the Transfer Funds dialog box:

1. Choose Banking→Transfer Funds.

   QuickBooks opens the transfer Funds dialog box, shown in Figure 12-6.

2. After you choose the accounts for the transfer, in the Date box, choose the date of the transfer and, on the Transfer Amount $ line, type the amount you're transferring from one account to the other.

   Typically, you transfer money because you don't have enough money ...