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Jack Bauer
May 7, 2022
Question

Transfer Funds between bank accounts issues

  • May 7, 2022
  • 1 reply
  • 0 views

Someone help please! Newbie here, took me a bit to decide if QBO is worth it. I got done with setup, but noticed issues when I checked the balance sheet report--my checking account is a negative (I was told this should not happen)!

First a quick background as this might be pertinent. I have an UMBRELLA business A, holding a PROPERTY business B (which hold a rental property). They both have their own checking accounts. So renter pays their rent, gets deposited to business B, then transfers some funds to business A, which pays off a HELOC/long term liability loan.

 

Going from business B to business A, it is just recorded as (click of) TRANSFER of FUNDS for the appropriate business accounts. After rent payment, business B gets a deposit. But the transfer doesn't have any real entry? Not sure about terms. But then business A gets an expense in terms of payment of longterm liability/HELOC. I think this is causing the negative in the business accounts. Appreciate the help in advance!

    1 reply

    C
    Charies_M
    May 7, 2022

    Thanks for reaching our Community support, Jack Bauer.

     

    You can use the Transfer option to transfer funds between your accounts. I'll show you the steps below:

     

    1. Go to the +New icon.
    2. Under Other, choose Transfer.
    3. Enter the necessary information.
    4. Click Save and close.

    Check out this article to learn more about transferring funds: Transfer funds between accounts.

     

    Since you're new to QuickBooks, we have easy-to-access articles, webinars, and video tutorials that will help you in familiarizing the different tasks, features, and functions of QBO. Below are the following:

    Get back to me if there's anything I can help you with during the process of fund transfer. I'd be happy to assist you further. Enjoy the rest of the day.

      J
      Jack BauerAuthor
      May 7, 2022

      Thank you so much Charies for the reply. I may not be explaining clearly I apologize. The funds have been transferred using the "mark as transfer (or something like that)" button on the Categorize tab. And I double checked they are the correct bank accounts that are used for the transfer. My issue is the bank accounts are showing up as negative on the balance sheet after the money flow I explained in my post. I'm wondering if it's the transfer funds button that is causing this, and what to do with it. Thank you again. 

      L
      LeizylM
      May 7, 2022

      Thanks, for getting back to us, Jack Baue.

       

      Allow me to share some information about why you're getting a negative bank balance in QuickBooks Online.

       

      The negative numbers on the accounts indicate that the company paid more than the expected amount due to a credit balance. This can be corrected by creating a Journal Entry to credit the affected accounts.  This way, the balance will be zeroed out.

       

      Here's how:

       

      1. Go to + New icon.
      2. Click Journal entry under Others.
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      3. Fill out the fields to create your journal entry.
      4. Select Save and new or Save and close.

       

      Also, I'd suggest checking its transaction report. This way, we can track all the transactions associated with your bank account.

       

      Here's how:

       

      1. Go to the Reports menu.
      2. Open your Balance Sheet report.
      3. Modify the reporting period.
      4. Click the amount of the bank account that shows up as a negative number. It will pull up its transaction report.
      5. Click the small Gear icon.
      6. Select the Debit and Credit boxes.
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      7. Click anywhere to refresh the page.

       

      I've got a visual guide on Understanding the Balance Sheet: Asset, Liability,; and Equity. This contains helpful information about managing the balance sheets in QBO.

       

      Additionally, you can get more insights about the Chart of Accounts in this write-up: Learn about the chart of accounts.

       

      Get back to me if you need further assistance managing your banking transactions. Drop a comment below and I'll get back to you as soon as I can.

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