QuickBooks Online: Transfers & Credit Card Payments

You make my life tolerable. haha! Thank you xo

Hector, I am currently working for a non profit that has two locations. One in X city, and one in Y city. They consistently transfer funds from one location to the other. Should I record this as a transfer or should I make it an expense for one branch and a deposit for the other?

Thank you so much for this video !!
I got a problem into QuickBook, I did some transfer of money from my chequing account to my credit card, so I just did a transfer into QBO, and match both transactions. The thing is both account in my balance sheet decreased after doing the transfer thing, so I don't know how to solve that, if you have any suggestions ?
Best,

is there a preference for Owners Draw (sole prop), Transfer to/from Owners Draw vs expense/deposit categorized to Owner's Draw? Is the affect the same?

Would you use a transfer when transferring a balance from one business credit card to another?

Thank you!!! I could not figure out what the issue was with transfers!!!

You touched on it but didn't say what you prefer - so you do not recommend an incoming transfer from the owner's personal checking/savings into business checking to be a transfer, should we categorize it as a deposit - uncategorized income, create a deposit? Any insight would be so helpful! I love your videos, they are always so helpful!

Thank you Hector for all this information! Is there a video where you explain how to categorize a Credit Card Credit? Once the refund is recorded as a credit card credit, qb online is asking if I want to match it or if I want to look for other matches. I only want to categorize it as a credit card payment and get it out of the bank feed.....Would it be good to match it when qb online offers a match?

Question, QBO bookkeeper helps me catergorize a transfer from the cash brokage account from the company to company 's checking account. Both belong to the company, is that not correct?

Love you hector from Pakistan.your videos are always so helpful

Thank You for your videos. It is now 2025 and I want to do bookkeeping for a small catering company that uses the Profit First Method. There are several bank accounts set up at three banks. All revenue goes into the Operating Expense (OpEx) checking account. Percentages of money are transferred from the Operating Expense (OpEx) checking account to the Income, Profit, Owner's Pay, and Tax accounts. What is the best way to set this system up? Do these transfers have to be done manually each month or can it be done automatically in QuickBooks Online?

@HectorGarciaCPA I’m so glad I came across your content today! I’ve spent the past year searching for answers about credit card payments, and your videos finally provided the clarity I needed. The way you teach aligns perfectly with how I think, making it so much easier to understand and validate my work.

What about owners draw? Should the transaction be categorized or marked as a transfer?

Haha! As soon as I saw the cover of this YT video, I started laughing hysterically. Yes! This is THE number 1 thing I tell my clients not to use. It creates so much havoc. Thanks for the video! I will be sharing with the clients that need a reminder.

Hi, I am confused whether to record an online transfer from/to both banks linked in QBO as "transfers" since I can also see that in other previous transactions, the old bookkeeper recorded some online transfers as expenses and some are recorded as transfers. Just confused about the inconsistencies in recording it. Need help, please. Thank you

I am new to Quick Books, if I have made a mistake and entered an expense as a transfer that has already been reconciled by my bank. How do I delete the transaction and re enter the correct transaction and mark the new corrected transaction as reconciled. You did an amazing job describing the trap of transfers. I think I know how to avoid my mistake in the future but I need to correct my mistake, thanks in advance!

Great information! My issue is there’s a transfer in my QB that is not on my bank statement or credit card statement. I would love your advice on what to do about that 🤔

Thank you for the transfers on the bank feeds. It is sooooo confusing. I need to practice on transfers. Is it best to click on "Record as transfer" then click "Add" or should I just click on "Record as transfer" then click "Record as transfer" on the top line? I just don't want to duplicate it.

I have a question, i have a card that has a VISA logo on it, but it is actually a revolving Line Of Credit card. How would you set this up? I can use the card as a VISA, but the interest starts immediately when you use it. I set it up as a credit card and when i went to reconcile, there was an amount that was suppose to be interest but it was not showing.

why Intuit Added this non-functional option - I will NEVER understand! - your expression, is EXACTLY how I feel, when I tell staff members and clients 1,000 times - exactly what you say :)!

What's the proper QBO way to transfer funds between 2 companies with the same owner?

Hello Hector......Firstly I love your videos, thank you!!!~ A question, I operate from Bank feeds from 4 different accounts with the same bank for our small business. We usually have a notification on the bank transfer clarifying where the transfer is from and to which simplifies things. I usually go to the debit transaction and register the payment as a bank transfer which often but not always pairs to the reciprocal transaction, the ones do not pair I try to match or if nothing matches I categorise as a Bank Transfer and then press add....obviously I am doing something wrong as on the Reconciliation report I now have all these duplicate transactions, Quickbooks have told me to delete them after checking they are duplicates which I have done which then unreconciles my reconciliation. There are a lot of duplicates as I inherited many from the previous bookkeeper. Can you please tell me 1) the correct way to apply the transactions from the Bank feed and 2) how to clear all the duplicate transactions that will not alter my reconciliations as I have already reported to our Taxation Office. It is overwhelming and frustrating that I cannot get clear answers on a resolution therefore hope that you can help me....Thanks so much Hector, appreciate your clear and to the point video tutorials.

If I have a transferbetween accounts, and QuickBooks suggests:" Categorize" into the correct account and they are both amounts linked- will that have the same impact as choosing "record as transfer" I see on the first column it says expense - instead of Transfer but it does not actually create an expense in the P&L, should I leave it as is or undo it and switch it to transfer?

my client always making record transfer but the amount is different. from paypal to chase. the paypal has a fee. from paypal 600 and the chase will receive it 595. when i reconcile it has a difference. what is the proper way. thank you!

Actually my only problem is on transfers. please help me. thanks,,

Do you have videos if the transfers is to other currency? like USD acct to HKD Acct? thanks u

Hi Hector! Quick question is it possible to create a savings account as a bank register that is actually not a real bank account and be able to transfer money into for a future business trip? And if not how would that be processed, saved and/or recorded?

Hector!! You're the best explaining, thank you so much for sharing your experience <3 Do you have like a full course for QB beginners? I would sign in!

Well Done Hector thx a lot for useful information

Thank you Hector. What about if you make a credit card PAYMENT from a checking account. Once both transactions are showing on the feed but you need to split the card payment into principal and interest then the bank transaction is no longer showing as a pair or match . Am I supposed to "add" that transaction into the checking split up as in the credit card feed? I dont want to duplicate the entry. Thank you

This is exactly the information I have been searching for. Clear and concise for dummies :). New to QB and lots of catch up to do (while trying to learn as I have been "handed the baton" ) I will be signing up for whatever courses you have available. Thank you, thank you, thank you. You are an incredible teacher.

Hi Hector, I just came across this video and it's very helpful. I just started using QBO so I've been avoiding using these paired transactions b/c I wasn't sure how to use it. I have a follow up question that I'd love your feedback on. Let's say that my biz made a credit card payment for $100 that includes $80 for repairs, $10 for office supplies, and $10 for meals. QBO is now asking me to pair these $100 transactions between the biz checking account and the credit card. However, if I do that, I don't see a way to category my $100 credit payment into repairs, meals, and office supplies. What's the best way to categorize these credit card payment while taking advantage of the pairing feature? I was considering just ignoring the credit card account altogether and just focus on categorizing the primary checking account feed, but seems like there should be a better wa -- thought I'd ask you the expert!

Hello Hector. Thank you so much for the video.
What if intercompany A pays intercompany B’s credit card bill? How to categorize it? I’m a little bit confused because I’ve seen that it was categorized as transfer- transfer to due to/from B.
Or expense it in company A side and make a journal entry in company B side?
Please let me know which way is correct or any correct way.

Hi Hector! Love your videos!
Do you have any video that explains in details how to pay a credit card that has other credit cards as sub-accounts?
I have seen some people that say "apply to payment to he main one" and others tell you to "split the payment between the subaccounts" and I am not really sure what is the correct way. Could you please advise? Your help is always appreciated!

Is it ok to transfer liability of one credit card to another credit card?

Why does my Qbo doesnt have record as credit card payment option?

Hi Hector. I very much appreciate all your videos.
I have a question, why you do not like to use transfers between a Business account and a Personal Account?
I have a client SMLLC that does draws all the time and I use transfers to record the transaction. Am I doing it wrong?

Hi Hector- Thank you for all you work. I did a credit card balance transfer to save on interest. Is there a video on how to record this? I obtained a 0% interest credit card and transferred the balances of three of my credit cards to it. The QuickBooks community has many conflicting advice. Please help. Thank you.

Hector- thank you for these videos. i am new to bookkeeping and always turn to your channel when I have QBO questions.
QUICK QUESTION- What do you suggest for Lines of Credit? My boss has a bus checking account and bus line of credit from the same bank. the previous bookkeepers recorded money moving btw these accounts as "transfers." is this ok? He also has another line of credit from a different bank that gets recorded as expenses. What would you suggest as best practices for these transactions?

Hi, i just have a quick question, my client have transferred money from personal account( not linked in QB) to his business account to pay the credit bill. In which account should i categories this?

I'm struggling to find the answer to how I should correct the many 'Transfers' my client repeatedly used to make credit card payments in years past. Any suggestions?

Very good explanation. You're the best 😀

Hector - I love your channel, and I am so glad you covered this topic. Thank you!

Hola Héctor tienes videos en español??

Yes! I noticed that right away when I helped a friend with her Quickbooks online. I was still new to QBO and found it interesting how any of her 'E transfers' that came in were matched as a transfer by default. I showed her how to click 'categorize', and she could then record her etransfers as her deposit which was actually income. But wow- the uncategorized asset was so strange! Glad it got changed.

Thank you 👍🏽👍🏽

What's the difference between transfer and card payment?

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Gosh. I’m sorry. But please stop confusing credit card payments with the word expense. Payments are not “expenses”.