How to transfer money between bank accounts in Xero

Xero, Bank, Finances, Accountant

How to transfer money between bank accounts in Xero

When you transfer money between business bank accounts that are set up in Xero, you can easily record that transfer on the Reconcile screen as it appears in your bank feed. However, if you’d like to record the transfer now rather than wait for it to appear in the Reconcile screen, you can do this from the “Manage Account” button. Bank, Xero

Go to the account the money came out of and select “Transfer Money” under “New”.Bank, Xero

Here, you’ll see Xero has selected today’s date and the account you selected in the From account. Then select the account where the money went to using the “To Account” dropdown menu. Enter the amount and select “Transfer”.Bank, Xero

The transactions will now show in the Account Transactions tab as unreconciled for both bank accounts until you’re able to match it with the bank statement.Bank, Xero

Here is another bank transfer you made but didn’t account for immediately in Xero. That’s okay. You can manage a transfer here from the Reconciliation screen. Simply select the Transfer tab, then select the bank account it’s going into and then choose “OK”.

Bank, Xero

Now Xero automatically creates two account transactions when a transfer money transaction is created. One in the account you’re currently reconciling and on in the other account that you specified the transaction was going to or coming from.Bank, Xero

Now, let’s check the other account’s Reconcile screen. Sure enough, there’s a match.

If by some chance you’ve selected the incorrect amount for the transfer, find the transaction and select “Remove & Redo”.Bank, Xero

It’ll now be back in the Reconcile screen, waiting for you to correct it.Bank, Xero

And that is how to transfer money between bank accounts in Xero.

About the Author

Annette Ferguson 

Owner of Annette & Co. - Chartered Accountants & Certified Profit First Professionals. Helping online service-based entrepreneurs find clarity in their numbers, increase wealth and have more money in their pockets.

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