Transferring Money between Accounts

Account transfers occur when you move money from one account to another — for example, from your savings account to your checking account. But jeepers, why am I telling you this? If you have one of those combined savings and checking accounts, you probably do this sort of thing all the time.

Oh, now I remember why I brought this up: QuickBooks makes quick work of account transfers as long as you’ve already set up both accounts.

Setting up a second bank account

If you haven’t set up a second account, you need to set one up. To do so, open the Chart of Accounts by choosing Lists⇒Chart of Accounts, or just click the Chart of Accounts icon on the Home screen in the Company section. Click the Bank button and then choose Continue. When QuickBooks displays the Add New Account dialog box, fill in the name of the account and (if you want) a description of the account, the bank account and routing numbers, and other information you want to store.

Recording deposits into the new account

You record initial deposits the way I describe earlier in this chapter (either as simple deposits or as customer deposits, whatever the case may be).

You record an initial transfer by completing the following steps:

1. Choose BankingTransfer Funds.

You see the Transfer Funds Between Accounts window, as shown in Figure 8-6.

Figure 8-6: The Transfer Funds Between Accounts window.

2. Select the bank account from which you’re going to transfer the money.

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