Categorize e-Transfers as employee payroll

Hi there, 

Categorizing your transactions properly is the best way to keep your books accurate and tidy. I know how important it is to be able to transfer an existing expense to a new account, and I'd be happy to explain the options. The steps will primarily depend on how you set up the initial transaction.

Based on what you've described, you've created your new Payroll Expense account properly. That's great! Now that you've set that up, you can move the existing expense into this account by creating a journal entry. 

Journal entries are seen as a last-resort in QBO, and it's always recommended that you consult your accountant on how this should be done. If you're not yet connected to an accountant, you can find one in your area here: Find a ProAdvisor.

If you’re feeling confident about creating journal entries, here are a few reasons to use them.

• Enter debits and credits manually, like in traditional accounting systems.
• Transfer money between income and expense accounts.
• Transfer money from an asset, liability, or equity account to an income or expense account.

Here's the steps you'll need to follow to create a journal entry:

1. Select + New.
2. Select Journal Entry.
3. Fill out the fields to create your journal entry.
4. Select Save and new or Save and close.

For more information and a helpful video tutorial, take a look here: Create a journal entry in QuickBooks Online.

If you need any further assistance, please reach out to our tech support team.

Cheers.