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V
vcbkpr
March 30, 2022
Question

Loans to other from one location to another

  • March 30, 2022
  • 1 reply
  • 12 views

Hi,

i have one company, 4 different bank accounts. We operate 4 restaurant locations. One bank account for each location.  I’m tracking all expense by using locations function. 

What is the best way to record a loan made from location A to location B, funds transfer via bank transfer? 

Need help on this please

1 reply

G
Giovann_GModerator
Moderator
March 30, 2022

Hello, vcbkpr.

 

I'll share the best practices to avoid mistakes when moving funds from one account to another in QuickBooks Online.

 

You can use the Transfer feature to record a transfer between two accounts. I'll show you how.

 

  1. Click the + New.
  2. Select Transfer.
  3. From the Transfer Funds From dropdown, select the bank account that the money is coming from.
  4. From the Transfer Funds To dropdown, choose the bank account that the money is going to.
  5. Enter the amount being transferred in the Transfer Amount field.
  6. Edit the Date field.
  7. Enter a description of the transfer in the Memo field (optional).
  8. Hit Save and close or Save and new to complete the transfer.
  9. Select Yes if you double-checked the date.

 

You can review this article for more details: Transfer funds between accounts.

 

I've also included the following resource below to help you manage your banking transaction if you connect your bank account to QuickBooks Online:

 

 

Fill me in if you have other questions about handling transferring funds in QuickBooks. I'll be happy to help you. Stay safe!

V
vcbkprAuthor
March 30, 2022

Thank you, but how do I record the transfer as a liability for that specific location so that we can track how much in loans need to be repaid in the future? 

LieraMarie_A
LieraMarie_A
Level 8
March 30, 2022

Hello again, @vcbkpr. I'll help you record the loan from one location to another.

 

You can use a journal entry to help you record these kinds of entries in your books. You can create a separate loan payable account for the location to track the loan you need to pay for each. I recommend speaking with an accountant to learn the best way to record the transfer and how to set up your journal entry.

 

Here's how:

  1. Click the + New button.
  2. Select Journal entry.
  3. On the first line, select an account from the Account field. Depending on if you need to debit or credit the account, enter the amount in the correct column.
  4. On the next line, select the other account you're moving money to or from. Depending on if you entered a debit or credit on the first line, enter the same amount in the opposite column.
  5. Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. This means the accounts are in balance.
  6. Enter information in the memo section so you know why you made the journal entry.
  7. Select Save and new or Save and close.

 

QuickBooks can help when it comes to working with an accountant. Using the My Accountant tab, you can invite an accountant you're already working with to be a user in your books so they can work on the transactions directly. That same tab also provides you with the Find a pro to help button. This connects you to our directory of QuickBooks-certified accountants near you. 

 

When you're ready to pay back the loan, refer to this article: Set up a loan in QuickBooks Online.

 

Don't hesitate to visit us again if you require further assistance, @vcbkpr. The Community is always here to help. Have a great day.

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