Transfers as an accounting term refers to the transfer of funds from one account to another. In the modern world we live in today, it is hard to imagine life without money transfers between different bank accounts. The most obvious example is paying your credit card bill through online banking. Normally you would go to a bill payment page and select the amount you would like to pay / transfer from your chequing /savings account to your credit card.
Transfers are used within an accounting software for very similar reasons. For example, many businesses use their business credit card to purchase equipment so that they can keep track of business related expenses. While this is occurring, the accounting system retains a balance in the credit card account. If a transfer was not added in the accounting system from the chequing account to the credit card account, it would seem like you are incurring a lot of unpaid credit card debt.
Entering Transfers in Kashoo
Click on Journal Entries and select Enter Transfer.
Example - paying off a credit card balance
Let's say that a $1,000 balance was outstanding on a company's credit card. To pay off that balance using money from the bank account on March 15, 2014, you would:
Withdraw From: Bank Account
Deposit Into: Credit Card Payable
Example - exchanging currency
If you are using multi-currency, you can use the Transfers page to exchange currencies. For example, let's say you wanted to transfer $1,000 from a US chequing account to a Canadian chequing account on January 1, 2014 (so the value of the Canadian dollars was $1,067). You would enter:
Amount: 1000, Currency: US Dollar
Withdraw From: CitiBusiness Chequing Account
Deposit Into: Scotiabank Chequing, Currency: Canadian Dollar
Exchange Rate: $1,000 USD = $1,067 CAD
If you want to overwrite the rate simply click on View Rate
To add an attachment, just click on any existing transaction and you can use the Attachment Upload section to upload files. You can upload multiple files and all file types are supported.
To view attachments click on the File icon.
Click on the boxes to navigate between multiple attachments. If you would like to download the attachment, click on the Download link.
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