| I operate 2 Business Bank accounts. I regularly transfer money between the two - either by doing an |
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Question: I operate 2 Business Bank accounts. I regularly transfer money between the two - either by doing an internet transfer or by drawing a cheque from BANK A and depositing in the BANK B account. How do I handle this? Answer: This is where a Transfer between Accounts account should be used. Create an account in Chart of Accounts - Call it Transfer Between Accounts - Bank A/B. When you see money going out of the one account, allocate it to the Transfer account. When it arrives in the other account, allocate it to the same Transfer account. This will have the affect of zeroing the Transfer account. Allocate the transactions as line items in the usual way. The system will pick up these transactions and include them in all the necessary reports. Petty Cash can be handled in this way. |
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