Tip for MYOB/Xero/Quickbooks re Bank A/c transfers


We advise against using “Transfers” for money transactions going into to one account and out of the other.

We suggest using “Spend Money” or "Receive Money" to reflect money going out of or into an account and the account allocation should be the account the money was sent to or from.

If it’s a Receive Money transaction, the account allocation should be where the money came FROM eg Owners Drawings or the “FROM another bank account” as seen above.

Question: Why do we suggest this?

Answer: Because its easier to see the transaction and scrutinise it later if you need to.

It’s also more logical and consistent with all other spend money and receive money transactions.

What do you think?

Now, this is a trick question. Do you know what the trick is?

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