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June 29, 2019
Question

VAT i charge on my services i transfer into a separate business savings account so i don't end up dipping into my VAT money. What would i class this transfer as?

  • June 29, 2019
  • 1 reply
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1 reply

June 30, 2019

It's a pleasure to have you here today, @Luke11_2,

 

Before anything else, could you tell me more about your concern? Are you simply transferring funds to the business savings account or are you trying to reclassify your transactions? Knowing this will help me provide the most accurate resolution to you.

 

If you wish to transfer funds from one account to another, you can create a journal entry and use a clearing account. Doing this will help you move money in between accounts. Perform these steps to set it up a clearing account:

 

  1. Tap the Accounting menu from the navigation panel.
  2. Choose Chart of Accounts.
  3. On the Chart of Accounts tab, click New.
  4. For the Account Type, choose Bank. You can choose any detail type you want.
  5. Key in the Name for the clearing account.
  6. Do not enter any amount on the balance.
  7. Hit Save and Close.

Here are the steps to guide you with creating journal entries in QBO:

 

  1. Click the Create icon indicated by a Plus (+) sign at the top-right section of the QBO Dashboard.
  2. Choose Journal Entry.
  3. Complete all necessary fields.
  4. Click Save and Close.

You can also see the steps to do the adjusting entries in this article:  Create a Journal Entry

 

 

If you're unsure which accounts to use, I highly recommend getting in touch with an accounting professional. They are experts with providing the best legal and accounting advice for your organization.

 

Please update me on the outcome or if you're referring to a different process. I'm always available to help you. Have a good one!