Transfers
“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 checking / 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 checking account to the credit card account, it would seem like you are incurring a lot of unpaid credit card debt.
Entering Transfers in Clarity Accounting
Case Study: Clarity Accounting owed $1000 on its business visa card. When the visa bill came at the end of the month, Clarity Accounting paid the visa bill out of the Business Checking account.
Using Transfers for Currency Exchange
Tags: accounting online, accounting software, online accounting software, small business accounting software, transfers accounting
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