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Ask QuickBooks ProAdvisor MBA PHR Your Ow...
QuickBooks ProAdvisor MBA PHR
QuickBooks ProAdvisor MBA PHR, Management Consultant, QuickBooks ProAdvisor, MBA, PHR
Category: Financial Software
Satisfied Customers: 82
Experience:  QuickBooks Pro, POS Point of Sale, Online & Enterprise Solutions
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Regarding Transferring funds between accounts in Quickbooks.

Customer Question

Regarding Transferring funds between accounts in Quickbooks. Just new to accounting software...We have a situation where we need to debit an expense account in order to move the funds to the budget of another category to be used for expenses there..wondering what the generally accepted practice is...our bookeeper did the transaction by debiting one expense account and crediting the balance to another expense account..seems like this can't be correct as it throws the balance of the credited expense account off (balance doesnt' reflect true expenses)...my inclination is that it should be transferred to a bank account category instead or something else?
Submitted: 1 year ago.
Category: Financial Software
Expert:  Robert M. replied 1 year ago.
what type of accounts are you transferring between ? two bank accounts where actual money was moved from one to another ?
Expert:  Robert M. replied 1 year ago.
if it is two bank accounts there is a transfer function where quickbooks will do it for you http://support.quickbooks.intuit.com/support/pages/inproducthelp/Core/QB2K12/ContentPackage/Core/Chart_of_Accounts/task_transfers.html To do this taskGo to the Banking menu and click Transfer Funds.In the Transfer Funds window, select the account from which you want to transfer the funds.Select the account to which you want to transfer the funds.Enter the amount that you want to transfer.Save the transaction.
Customer: replied 1 year ago.

its currently set up as 1 main bank account where all funds are deposited, income accounts by Bed 1, 2, and 3 and then expense accounts Bed 1 ,2 and 3...need to reflect transfer of budget(funds?) from the beds (debit?) to our general house expenses ledger

Expert:  Robert M. replied 1 year ago.
so what type of account are you transferring from and what type are you transferring toand what does it actually reflect happened in the real world
Customer: replied 1 year ago.

Sorry, I'm probably not using the correct terminology but...I'll try again.

Real world= Funds paid out by the government allotted to cover Clients various monthly costs need to be transferred(debitted) out of their expense budget and allocated instead to the facilities food costs.

Not real world ie.Quickbooks...all $ are deposited to the main bank account....the facility has its own income reflected in the income account as "fixed service income", each clients stipend is recorded in thier own separate "income" account.

again, trying to figure out the correct way to "expense" the client to re-allocate the fund amount towards food expenses....I thinks it is appropriate to debit the client expense account...but unsure what type of account to credit the amount to afterwards...our bookeeper credited the household expense account but this throws the running total of that account..is it not true that expense accounts should only record expenses and income accounts should only track actual income?

Expert:  Robert M. replied 1 year ago.
i think this is more of an accounting question than a quickbooks question i have some knowledge of it but i come at it more from a computer background I am going to opt out and wait for one of the cpa type guys to help you. i am sorry
Expert:  QuickBooks ProAdvisor MBA PHR replied 1 year ago.
Hi, I think I can help here. Income only comes in once. Expenses only leave once. The allocation to client expense accounts should not affect your bank balance and should not go through them. Allocation to individual tracking from a larger group expense occurs via General Journal entry. In your situation, what I might have setup in my Chart of Accounts are several SubAccounts to help me more clearly see where funds were going. I could have a Primary Food Expense account, and then I could have a SubAccount under Food for each Client. OR I could have a Primary Food Expense Account, a Primary Client Expense Account and a SubAccount for each appropriate Client Expense Account. This would depend on how I want the data to feed onto my reports- Do I want Individual tracking to Feed under each Expense Account, or do I want each Expense Account to feed under a primary Client category. I hope this is of assistance. Please ask any followups necessary.

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