PSD Office in a Box®-Frequently Asked Questions

This section will refer to bookkeeping How Do I questions as they apply to every day data entry into Quickbooks: I have been teaching and selling Quickbooks since its introduction. I have designed a chart of accounts which you will find in my Small Business Pak filing system for the setup that seems to work for people with little or no bookkeeping experience. Each month we will add another frequently asked bookkeeping question to this How Do I page.

How do I enter in Quickbooks a transfer of money either by telephone or electronically to savings, loans, credit cards, or to my personal account?

From Checking to Savings?

Answer:

On your chart of accounts set up a primary account.

The type is Bank and call it "Bank Accounts". This will be the primary account. Then set up two sub-accounts, using the same type. Call one "Checking" and the other "Savings".
If you are transferring money from checking to savings, go to "Make Deposits". On the top left corner of the deposit it asks "Deposit to", in this box pick the Checking account. Then below in the white columns go to "From Account" and click just below it. A little box with an arrow on the right side of that line will appear, click on that arrow in the box. The entire chart of accounts will appear. Go to the top of the list, you will see the Savings account listed then click on Savings.
Now you are back to your deposit, now fill it the correct date, fill in the memo with explanations as to why you are transferring money for future reference, fill in the amount of money you want to transfer, then click "Save and Close".

From Checking to a Loan Payable?

Answer:

If you follow Questions 1 a. your sub account called checking will be set up for you to transfer money from.
On your chart of accounts set up a primary account>

The type is Long Term Liability and call it "Loans Payable". This will be the primary account. Then set up a sub-account, using the same type. Call the sub-account the name of your bank and behind the name put only the last four numbers of that loan account and click on OK. This is how you will set up future loan accounts.
If you are transferring money from checking to a Loan Payable, go to Write Checks. On the top right hand corner, next to No., type in Transfer. Below fill in date. Now fill in the dollar amount you wish to pay on this loan. Then below in the white columns just below the check, just beneath the Expenses column. You will see the dollar amount has filled in to your right. To the left click on the arrow box and either go down or up the list until you have found your sub account under your Loan Payable account. Click on that sub account, then Save & Close.

From Checking to a Credit Card?

Answer:

On your chart of accounts set up a primary account>

The type is Credit Card and call it "Credit Cards". This will be the primary account. Then set up a sub-account, using the same type. Call the sub-account the name of your credit card and behind the name put only the last four numbers of that credit card and click on OK. This is how you will set up future credit card accounts. (Never put your entire credit card account number in your computer.) If you have multiple credit cards for your company, this would be a good time to finish settings them all up.
If you are transferring money from checking to a credit card, go to Write Checks. On the top right hand corner, next to No., type in Transfer. Below fill in date. Now fill in the dollar amount you wish to pay on this credit card. Then below in the white columns just below the check, just beneath the Expenses column. You will see the dollar amount has filled in to your right. To the left click on the arrow box and either go down or up the list until you have found your sub account under your Credit Card account. Click on that sub account, then Save & Close.

From Checking to my Personal Account?

Answer:

On your chart of accounts set up a primary account.
The type is Equity and call it either
"Owners Draw" (if you are a sole proprietor) or
"Distribution" (if you are a Sub S Corporation) or
"Dividend" (if you are a C Corporation).
This will be the primary account you will use when drawing money out of your account for personal usage. If you are incorporated, this will be either distributions or dividends taken in addition to payroll checks.
If you are transferring money from checking to your personal account, go to Write Checks. On the top right hand corner, next to No., type in Transfer. Below fill in date. Now fill in the dollar amount you wish to pay on this personal account. Then below in the white columns just below the check, just beneath the Expenses column. You will see the dollar amount has filled in to your right. To the left click on the arrow box and either go down or up the list until you have found your equity account called either Owners Draw, Distributions, or Dividends. Click on the appropriate account, then Save & Close.