How-to · Banking and cash
How to record a transfer between bank accounts
Record a transfer as one entry that moves money between two balance sheet accounts: debit the account receiving the money and credit the account it came from. No income or expense is involved, so your profit doesn't change.
How-to guides / Transfer between accounts
The accounting behind it
A transfer appears on two statements: money out of one account and money in to the other. Recording it as a single entry keeps both accounts right and both reconciliations clean.
If you record the two sides separately, as a check and a deposit, it is easy to code one of them to income or expense by mistake, or to enter one side twice from two bank feeds.
Paying the business credit card from the bank is also a transfer: the bank goes down and the card's balance owed goes down.
| Account | Debit | Credit |
|---|---|---|
| Savings | Amount | |
| Checking | Amount |
Worked example: setting aside tax money
Each month you move $1,500.00 from checking to a savings account set aside for taxes.
| Account | Debit | Credit |
|---|---|---|
| Savings | $1,500.00 | |
| Checking | $1,500.00 |
Common mistakes
- Recording the incoming side as a deposit to income.
- Importing both sides from two bank feeds and accepting both as new entries, which doubles the transfer.
- Using a transfer for money moved to a personal account. That is an owner draw.
In AcboBooks
- Open Transfer Funds. Go to Banking → Transfer Funds.
- Fill it in. Choose Transfer from and Transfer to (bank or credit card accounts), the Date, the Amount and a Memo.
- Save. Click Transfer.
- From the bank feed. If both sides are in Bank Feeds, use Add as transfer on the line so the two feed lines post as one transfer.
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Questions
Is a transfer between my accounts income?
No. It only moves money between two accounts you own.
How do I record paying the business credit card?
As a transfer from the bank to the credit card account.
What about moving money to my personal account?
That is an owner draw (or salary, depending on your business structure), not a transfer.
Related how-to guides
Terms used here
Updated October 25, 2026. General bookkeeping information, not tax, legal or accounting advice. Rules differ by state and province and change over time; check with the IRS, the CRA or your accountant for your own situation.
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