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SE_Accounting47
January 17, 2020
Question

Using journal entries for bank transfers

  • January 17, 2020
  • 1 reply
  • 0 views

We want to use Journal Entries to label bank transfers that occur between our multiple Quickbooks Online accounts. 

 

EX: $1,000 transferred from Business Checking Account A to Business Checking Account B.

 

To clarify these are real separate bank accounts that are sister companies to each other. We often do transfers between the multiple checking and savings accounts. 

1 reply

Candice C
Candice C
January 17, 2020

Welcome, @SE_Accounting47.

 

It's always great to have someone new in the Community. I can provide you with some information about creating a journal entry for a bank transfer.

 

You can create a Journal Entry within two Chart of Accounts inside of one QuickBooks, but you're not able to within two QuickBooks companies. Your accountant will know the best way to make journal entries or bank transfers for your unique business. If you currently don't have an accountant, I suggest looking into our QuickBooks Live opportunity.

 

This is a link that can give you some information on Journal Entries.

 

Please know I’m only a post away if you need me.

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    wenatcheenazaren
    April 5, 2021

    I use journal entries for moving expenses and income between subaccounts of savings and from checking to and from savings depending on the transactions during any given month after I reconcile the bank accounts.  I determine the aggregate amount to make the actual transfers at the bank.  I cannot seem to add the journal entry as a matched transaction to the transfer to reconcile it.  How should I handle this?

    JoesemM
    JoesemM
    April 5, 2021

    Hi there, @wenatcheenazaren.

     

    Let me help you add the journal entry, so you can match the transfer and reconcile it. 

     

    Before proceeding, here are a few reasons the match may not have been recognized:

     

    • The JE was recorded in a different bank account.
    • The JE has been reconciled. 
    • The JE has been previously matched to another bank downloaded transaction.

     

    You may want to double-check again the date, amount, category, and check numbers of the entries are aligned. This is to make sure those checks will match.

     

    Once checked, you can now match the transactions again. Let me show you how: 

     

    1. Go to the Banking page.
    2. In the For review, tab, find the Transfer record. 
    3. QuickBooks will automatically find the match for the record. Simply select it, then click on Match. 
    4. If not, select it then tick the Find match button.

     

    For more in-depth information about finding a match in QuickBooks, refer to these articles: 

     

     

    However, if you have multiple bank feed transactions but a single journal entry, then you'll want to skip the matching part. Instead, exclude those transactions and manually clear the journal entries in the register. 

     

    To exclude the transactions: 

     

    1. Go to the Banking page again, then click the For Review tab. 
    2. Find the bank feed transaction and check it. 
    3. Click the Exclude button.

     

     Do all the steps until all of the transactions and records are accounted for in all bank accounts. 

     

    Once everything is recorded, you can now reconcile the transactions. Check out this guide on how to do it in QuickBooks Online: 

     

     

     Also, browse our articles if you need help navigating around the program or if you're simply looking for a guide: QuickBooks Online general support page. 

     

    Please get in touch with me if you have further questions. I’m always available for all of your QuickBooks needs. Cheers to a safe and productive day!

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