Welcome to the Community forum, @-uniquehijabs-co
Let me provide the process of how QuickBooks Online (QBO) records fund transfers from your account to another company.
This transaction has to be recorded as an expense or a cheque from your company and deposited by the company where you sent the money.
Moreover, the transaction shouldn't be part of your clearing account since this is intended for your daily sales undertaking. Which answers your second question.
Here's how:
- Click the +New tab. Then, below suppliers, choose either Cheque or Expense.
- Select the bank account the funds are coming from.
- Type in the Payee, Payment Date, and the Payment Method.
- From the Category details, in the Category column, pick an Asset or an Equity account to show the funds going out of the business.
- Enter the amount in the Amount column. Then, Save and close or Save and new.
Check out this article for more info: Transfer funds between companies in QuickBooks Online.
Please know that this will still show in your profit and loss statement. To further help you so this transaction won't show up in your financial statement, I recommend consulting your accountant to record this into correct accounts based on your specific circumstances.
If you want to learn how to avoid combining personal with business expenses, you can read this article: Mixing business and personal funds in QuickBooks Online.
Leave a reply below if you have additional questions about recording funds transfer in QBO. We'll be willing to lend a hand. Keep safe, and have a good one.
