Bank Transfers

Bank Transfers

Overview

Bank Transfers are used to record the movement of funds between two accounts that are being tracked in CustomBooks™. This feature helps ensure that transfers between bank accounts, savings accounts, credit card accounts, or other cash-related accounts are properly recorded without affecting income or expense balances.

Common examples include:
  1. Transferring funds from a checking account to a savings account
  2. Moving money between bank accounts at different financial institutions
  3. Paying a credit card balance from a bank account
  4. Transferring funds between company cash accounts

Creating a Bank Transfer

To create a Bank Transfer:
  1. Navigate to Bank → Bank Transfers.
  2. Enter a Bank Transfer Number or leave this field blank to have the system auto-assign a code for you.
  3. Enter or adjust the Date of the transfer.
  4. Enter or select the From Account (the account the funds are coming from) by choosing accounts from the drop-down lists.
  5. Enter or select the To Account (the account receiving the funds) by choosing accounts from the drop-down lists.
  6. Enter the transfer Amount.
  7. Add a Memo (optional).
  8. Click Save to record the transfer.

Once saved, CustomBooks™ creates the appropriate accounting entries to reduce the balance of the source account and increase the balance of the destination account.

For a quick overview of the process and guided steps, please watch the video below.



Accounting Impact

A bank transfer does not create income or expense transactions. Instead, it simply moves funds between two balance sheet accounts.

Example:
You transfer $5,000 from your Operating Checking Account to your Savings Account.
Account
Debit
Credit
Savings Account
$5,000

Operating Checking

$5,000

The overall cash balance of the company remains the same, but the funds are reallocated between accounts.

Viewing Bank Transfers

To review previously entered transfers:
  1. Navigate to Bank → Bank Transfers.
  2. Use the search or filter options to locate specific transactions.
  3. Double-click a transfer to view its details.
This allows you to review transfer history and verify movement of funds between accounts.

Editing a Bank Transfer

If a transfer was entered incorrectly, you can edit the transaction:
  1. Open the Bank Transfer record.
  2. Make the necessary changes.
  3. Click Save.
Any updates will automatically adjust the affected account balances accordingly.

Note: If the transfer has been created by CustomBooks™ on approving a bank transaction, you will not be able to edit the document.

Deleting a Bank Transfer

A bank transfer can be deleted if it was created in error and is no longer needed.

To delete a transfer:
  1. Open the Bank Transfer transaction.
  2. Click the More Action button → select Delete.
  3. Confirm the deletion.
Deleting the transaction reverses the transfer and removes its impact from both accounts.

Note: If the transfer has already been reconciled, matched, or has been created by CustomBooks™ on approving a bank transaction, you may need to remove the reconciliation, unmatch it, or unapprove the transaction before it can be deleted.

Bank Transfers and Cloud Banking

When using Cloud Banking, downloaded transactions that represent transfers between connected bank accounts may be matched to an existing Bank Transfer transaction. This helps reduce duplicate entries and simplifies the reconciliation process.

For best results, create the Bank Transfer before approving the downloaded bank transactions whenever possible. To learn more about approving bank transfers in Cloud Banking, see the article about Bank Transfers in Cloud Banking.

Best Practices

  1. Use Bank Transfers only for moving money between accounts owned by your business.
  2. Do not use Bank Transfers to record customer payments, vendor payments, or expenses.
  3. Include reference numbers or notes to make transfers easier to identify during reconciliation.
  4. Regularly reconcile bank accounts to ensure all transfers are accurately recorded.

If you need any further help or assistance, don't hesitate to reach out to our support team. You can contact us via live chat, email, or by submitting a support request ticket through our Help and Support page.

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