How Do I Record an Account Transfer?

By: Stephen L. Nelson, CPA

To record an account transfer, you record the transfer in one of the accounts involved
in the transfer. For example, if you are moving money from your checking account to
your savings account, you record the transfer in either the checking or savings account.
Predictably, all a transfer transaction really does is name the transfer amount and
identify the two accounts.

Recording transfers between accounts

To record an account transfer, take the following steps:

1. Display one of the account's registers.
You can record an account transfer in either account. To display one of the account's
registers, click the account name listed in the Favorite Accounts area of the Money
home page. Or click the Accounts & Bills link, and then select Account List to display a list of all your Money accounts. Then click the account you want.

2. Click the Transfer tab.
To indicate that you are recording an account transfer, click the Transfer tab. The
Transfer tab provides input boxes, or fields, you use to describe an account transfer.

3. Specify the transfer date.
Press the Tab key or click the mouse to select the Date box, and then enter the transfer
date. Or click the Date box's button to display a pop-up calendar that you can use to select the date. You can also use the date entry codes t, m, h, y, and r to enter the current date, the first or last day of the month, or the first or last day of the year.

4. Specify the account from which you are transferring money.
Press the Tab key or click the mouse to select the From box. Then click the From
box's button to display a list of the accounts that you have already set up. From this
list, select the account from which you are transferring the money.

5. Select the account to which you are transferring money.
Press the Tab key or click the mouse to select the To box. Then click the To box's
button to display a list of the accounts you set up under Money. Click the accountto which you are transferring the money.

6. Specify the transfer amount.
Press the Tab key or click the mouse to select the Amount box. Then enter the amount of the transfer. You can enter the transfer amount by using the numeric keypad on your computer keyboard, or you can click the Amount box's button to display a pop-up calculator that you can also use to specify the amount.

7. (Optional) Record any needed additional information.
You don't have to record any other information to fully record the transfer transaction. However, Money does allow you to specify a Pay To entry, a memo description, and even a transfer number. If you want to record information in these
fields, go ahead and do so.

8. Record the transfer transaction.
After you have correctly and fully described the transfer transaction, click the Enter
button. Money then records the transfer transaction both in the account from which
you are moving money and the account to which you are moving money.

A Tip for Small Business Owners Using Microsoft Money

If you use Money to track both your personal finances and the finances of a small business--say a corporation or limited liability company you operate--you should segregate the personal accounts from the corporation accounts by putting the accounts into different Money data files.

However, if you put, say, your personal bank accounts into one Money file and your corporation bank accounts into another Money file, you will not be able to record the both sides of the transfer transaction as the same time. Rather, you'll need to the two halves of the transfer separately: one transaction in the personal account and one in the corporation or limited liability company account. Money does not allow you to record simultaneously transfers between accounts in two different data files.

Accounting
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