 QuickBooks Online 2024. Transfer form. Get ready and clear your mind because we don't overanalyze. We Intuit. We're the Intuits. QuickBooks Online. Here we are online in our browser searching for QuickBooks Online Test Drive looking for the result that has Intuit.com and the URL Intuit being the owner of QuickBooks selecting the United States version of the software and verifying that we are not a robot. Opening up reports like we do every time. Reports on the left hand side. Favorite reports. There's our two favorites. Right-clicking on the balance sheet because I want to open link in new tab. I'm going to do the same with the profit and loss. Otherwise known as the income statement. Right-clicking on it. Open link in new tab. The new tabs are opening up top. Here's the middle tab closing the hamburger in that middle tab. There's our balance sheet. Tabbing to the right. Closing the hamburger. There's our profit and loss otherwise known as the income statement. Let's go back to the first tab. That's the setup process we do every time. Data input in the first tab. The impact on the end result financial statements to the tab to the right. So let's go to the drop down. In prior presentations we went through the vendor cycle. We went through the customer cycle and then we were looking over here in this other area which looks like it would be another cycle but it's not another cycle. The idea here I believe through the design of QuickBooks would be that this whole new form is where we go for the normal type of transactions that happen periodically and as opposed to things that we do as foundational items to set up the company file like the chart of accounts and whatnot which you could find in the lists drop down in the cog. First a word from our sponsor. 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If you would like a commercial free experience consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com and under the lists up top and then most things that we do are going to happen in a cyclical method a cyclical process we want to understand that cyclical process by cycles customer vendor employee cycle but some of the forms that we use often don't fit neatly into any of those cycles and QuickBooks put them over here so these are forms that we still use on a periodic basis and pretty regularly but they are not aligning perfectly into a cycle so now we're going to look at this transfer form so a transfer form usually will be used when we're transferring money between say two check-ins accounts or possibly a checking account and a credit card account although in that case you might have like the pay down of the credit card form over here which we'll talk about later so the funny thing about the transfer form is you might say well why do I need it because if you look at this from a journal entry perspective then what's going to happen when you're taking money out of the checking account say and putting it into the savings account well it's going to be a decrease to the checking account increase to the savings you would think you might do that with an expense form and that would be fine but the expense form will look fine on the credit card on the money going outside but on the money going in to the to the other savings account which is also a checking account you're going to have an expense form which looks like a decrease type form usually which will be increasing that account so it's not really the journal entry that's the problem it's the form when we try to sort the data in our in our in our sheets over here like our general ledger type transaction report uh sometimes we might want to filter by increases being deposits and decreases being expenses we might be using our filtering tools uh to the right and filtering by type possibly and in that case if i have expense forms that are increasing the account that's going to be more difficult to filter with so it won't impact or be wrong from a financial statement perspective in terms of the numbers being correct but that the transaction form will look a little funny on the other hand you could say well if i'm putting money into the savings account i could use a deposit form to put it into the savings account and that would look fine on the savings account side because the deposit would be an increase but the other side would be a deposit form going into the checking account which would be a negative a decrease in the checking account with a deposit form which again looks funny although the transaction would be fine also note that when we think about these bank feed transactions you might be using them or if you have your bank feeds on you'll see this problem in the bank feeds as well which we'll talk more about when we get to the bank feeds meaning that if you have two transactions that are impacted both of them being connected to the bank then you're going to see the transaction coming into what i would call bank feed limbo on both sides of the transaction and and then the question is how am i going to record it you can record one on this side and then you can record the other one which should match it on the other side right so you'll record it most likely on the checking account if it was a transfer to the checking to the saving you would record it in the checking account side and then in the savings account side you would be matching it they're not recording it uh twice so you kind of have to be aware of that now if i go into one of these just note that usually if it's an increase a receive payment form then it's usually going to be categorized as uh well let's let's do a decrease here let's say it was a decrease if it was a decrease it's going to be categorized over here if i if i record this it would be like an expense form but we might say that it's to record a transfer so if you go over here now i can kind of change the form type to a transfer and sometimes the bank feeds will do that automatically if it senses that it's going from one account to another both of them being connected to the bank feeds and then if it was a credit card then you might go to the record as a credit card payment which is like a we'll talk about that later but it's kind of like a transfer form for the payment of the credit card the credit card being another item that could be connected to the bank feeds so let's just think about this what let's think about why we don't use an expense form what would happen if i'm transferring money from the checking account to the savings account and i just do it with an expense form let's do that which would be similar to a check form you could do the same thing with a check form and let's say that this i'm just going to say this is i'll just call it a transfer for the payee set it up as a vendor so we have a vendor it's going to be going out of the checking account let's say it happened on 010124 it's a payment method it's going to be a transfer maybe i can add one and see it's transfer or electronic payment or something like that and then okay no tag and then the category it's going into is going to be the savings account so i'm going to say where is the savings account is called there it is it's called savings account right so it's a bit and it's a bank type of account so we're taking it out of one bank type of account checking account we're putting it into the other bank type of account savings account we're taking it out of the checking account with an expense form it's going to go into the savings account let's say it was for a hundred dollars and so there is our transfer so so this is going to record the proper journal entry it's just going to decrease the checking account it's going to put it in the other account increase in the savings account, but it's going to have an expense form on both sides of the transaction and the detailed reports. Let's save it and close it and see what happens and go to the balance sheet and say run it. And so we're going to go into the checking account. Oh, hold on. I got to change the date. So let's go back. Go back. Wait a second. Range change. 010124 tab, 123124 tab, running to refreshing, going into the checking. And so there we have the $100. There it is. It's an expense form on this side, which is a decrease, which makes sense, even though it's not going to like an expense account. But we've seen that. That's the case before. If we bought like inventory, it wouldn't have gone into an expense, it would have gone into an asset account. So that looks pretty good there. But if I go into the savings account side, the problem is the journal entry is right. It's an increase. But I say this isn't the form. I put a name here as a transfer. The form is called an expense form, which is weird because expenses usually decrease the cash accounts. So that's the problem. Like if I tried to filter by the decreases, I wanted to filter by expenses, or I wanted to filter by the increases. Normally, I wouldn't think of an expense form as an increase. And that's going to mess up my filtering, which the transaction type is the main filtering tool that we use. Conversely, if we were to say that we're taking, we're taking, we can deposit it into the savings account, right? If I use the deposit form, I could do that too. You could say, well, I could record this with a deposit form, because I could have said that it's in the savings account now, which is another bank account, as of 0102, let's say. And then I'm just going to say the other side is going to go into the checking account. Checking. Okay. What do they, what do they call, what did we call the checking account? It's just called checking. Don't, I'm over here, checking. Checking account, which is a bank account. And let's say this was for, let's say this was for $200 just to make it different. So now this is going to increase the account that we assigned it to, to the savings account. And the other side is going to be coming out of the checking account, which is correct from a journal entry standpoint. But again, the name of the form looks funny. Let's save and close it. So if I go into the balance sheet, this time we solved the saving account side of things. Because if I, if I go into here, now it didn't take, let's run it back again. And then there it is. Okay. So here's the $200. Now this one looks correct this time because now it's a deposit, which is increasing the savings account as opposed to last time where we had the increase, which was an expense, which doesn't look right. But if I go into the checking account side now, if I go into the checking account, now I have, I have a deposit that is decreasing the checking account. And that shouldn't really happen. If I tried to search by my deposit form, I would have this funny deposit that's a decrease, which is weird if I tried to filter by deposits. And the filtering type of the transaction report once again is the major, our major filtering field that we usually want to filter on oftentimes. So then we can fix that with a transfer form, of course. So we're going to say it's a transfer, which a transfer means that it could be an increase or a decrease. So now I'm going to say it's coming out of the checking account, and it's going into the savings account. And then we're going to say transfer amount. Let's make this $300. There's the transfer. So this time, it will just show transfer on both sides, which doesn't look funny as an increase or a decrease. But it does add a little bit more complexity because now you have another type of transaction, which is a transfer transaction. So let's save it and close it. And I'll show you that one. If we go on over here to the balance sheet and refresh it, we're going to say in the checking account, now we've got, didn't do it again, let me refresh it again, refresh, run it, come on, making me look bad. So now we're back in the checking account. So now we have a transfer. So now it's a decrease of a transfer. So that doesn't look funny because a transfer could be either an increase or a decrease. However, it still adds a little complexity because now when I want to search or filter for increases or decreases, I have to take into consideration that a transfer could be an increase or a decrease. So when I filter over here, if I go into my filters up top, now it's already filtering this first one by the account name, because we're in the checking account, I'm going to add a filter then. And this time I'm going to filter by the transaction type, which is a common filtering. And then we're going to say it's going to be equal to and we'll say that the transaction is an expense. So we're looking for expense transactions, there it is. And then I'm going to say, okay, so now we have our checking account and we filtered by that expense form. But I now have a transfer, which is also a decrease. So I'd have to filter and make sure I check off the expense and the transfer. So let's see if I can find that transfer, search field, boom. So now we've got, if I close this back out, both the expense and the transfer. So they've adjusted some of the filtering, the look and feel of the filtering. And so we're looking at this new filter window, but that works pretty well, that filtering option will test out the filters a little bit more when we get to the reports. But that's just a general idea with the filters. And because the transaction type is a common filtering tool, I'm going to exit and the transaction and the cash account is a common place where you would apply the filtering tool and the transfer form has an impact on that. So if I go back to the first time, the bottom line is that when you're transferring money from one account to another, then that's not like a normal type of transaction that happens all the time, or periodically, but it might happen from time to time. You might have it set up so that you transfer periodically some money from the checking account to the savings account, but it's not part of the normal kind of business cycle that we would expect all the time. And therefore, it's not in the cycle, it's in the other area over here. And then when you make that transfer, you're going to say, well, it's not normally in the cycle, but cash is affected. So when cash is affected, normally I would use then an expense form or a deposit form, or put it into the check register, which would be an expense or a deposit form. But it might be better just from an internal reporting purpose to use the transfer so that the filter will be properly shown as a transfer, and you won't have deposits that decrease or expenses that increase into your checking account. And when you use the bank feeds, just remember that it will probably populate in your bank feeds as a transfer, as it pulls into the bank feeds, if you have both of these items selected, both of them are connected to the bank feeds. But if it doesn't, then you just want to be mindful of that. Why is that happening? If you go into this spend money form, then this one found a match. If it's going to be a transfer, then you want to make sure you kind of understand why the transfer is happening. It would still be the same journal entry, but the form will be a different form type when you drill down on the form from the financial statements, which once again kind of helps you with your filtering options, although it doesn't have an impact on the actual recording of the financial statements in terms of the dollar amounts that are being recorded, which would be the same whether you use the transfer, a deposit, or an expense form.