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M
Maverick2
June 15, 2022
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I'm switching banks. If I write a check out of QB, how do I record it?

  • June 15, 2022
  • 1 reply
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I'm switching banks. If I want to write a check to transfer money, in the "Write Checks" window, what expense account should I use? Yes I could do ACH, but a check is free to do.

Best answer by Pete_Mc

Now I'm to the point of actually doing this. I use QB desktop, not QB online, and I don't use bank feeds. My online banking portal does not have an option to enter an external bank to do ACH transfers to (dumb) so I need to contact my banker. My preference is to do 99% of the switchover before telling him.

 

If I write a physical check, I can deposit that to my new bank. When I go to the register and manually enter the check and the check number, I still have to make it payable to a vendor. This will increase expenses which is not correct. So I'm still unclear how to proceed.

 

I guess I could just go to the branch and do a bank check. That's probably the best way.

 

 


Just take a blank check to the new bank and fill it out there.  They will probably just tell you to fill it out to "Cash" when you make the deposit (that's basically what you're doing is moving cash from Bank A to Bank B.  Other option might be to make it out to the new Bank + your new Acct number.  (e.g. Chase Bank Acct# 123456).

 

As we talked about before, your entries will be a Transfer, not a payment to a Vendor.  You can do this by going to the Banking Drop Down Menu at the top and Pick Transfer. 

 

You can also just do this directly in the two Bank Registers in the Chart of Accounts.  In the Old Bank A you can call it "Cash" or "Transfer" since that's what you're doing.  If Cash or Transfer do not exist in your Company, when you get the Pop-Up menu, pick Other.  This is not a Vendor, just an "Other" entry.

 

 

Old Bank A

Ck# 1234       Cash (or Transfer)                            $1,000.00

                      New Bank B       Memo: Open new bank account

 

New Bank B

DEP              Cash (or Transfer)                                                          $1,000.00

                     Old Bank A         Memo: Open Acct

 

 

 

 

1 reply

P
Pete_Mc
June 15, 2022

Unless ALL the outstanding checks have Cleared, you may want to do this in a couple of steps.

 

In answer to your main question, Create the new Bank Checking Account in QBs.  Write a check from your Old Checking Acct and make the associated Account the new Checking Account.  So QBs will show $100 dollars going out of Old Checking and into New Checking.

 

If you have any outstanding checks on the old Acct., I'd leave enough money in the Old Checking Acct not to be charged a Fee (or work it out with the bank so you're not charged a Fee).  I'm recommending this because every once in a while someone will do a typo and the original withdrawal is more than you're expecting.  This will stop the auto overdraft fees, etc. and just makes it easier to correct the issue (bank looks at the check and sees what it was really filled out for).  Then once All the checks have cleared, write a check for the final Balance in the Old Checking and send it to the New Checking as you did above by just putting the New Checking Acct in the Account Field.  Then confirm the Account is Closed with the Bank, don't assume it's closed because there is a $0 Balance.

 

Also be sure to check for any Auto Payment AND Auto Deposits that go to that old account.

M
Maverick2Author
June 15, 2022

Thanks very much for your help. Ah, I see. Go to "write checks," pay to the order of the new bank from the old bank, and put the NEW bank in the expense tab under "account." I now see a check from OLD and a deposit into NEW. Correct?

 

 

P
Pete_Mc
June 15, 2022

Sorry, I realized I missed saying you want to Transfer the money. If you go to Write Check, QBs  is going to assume you're paying a Vendor, which you're not.

 

So basically the same thing, you are going to select New and then Transfer and then pick the Accounts you're transferring between (that's why it's easier if you set up the New Checking Acct first). 

 

If you write your checks manually, you can still write a check and just make the deposit in the new Bank.  You can go into the Old Checking Register and add the Check Number, or just match it to the Transfer when you do your last Bank Feed.  (Be sure to disable the Bank Feed when you're done with the Acct so QBs doesn't keep trying to sync it.)

 

If you do Online Check, then go into the Bank and ask for a Cashier's Check (Bank Check) and then use that Check to open the New Checking Account.  I'd probably have them make it out to Cash, but remember that really is CASH then.  So you don't want it sitting on your desk or someplace you could loose it if you're not going directly to the new Bank.  So if you're not going to the bank, have them write it out to you and then you can endorse it to the New Bank.

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