How to transfer money between bank accounts in Xero

Annette Ferguson

Annette Ferguson

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

Thanks ever so much for taking the time to read my post I truly hope you’ve found it useful and insightful. If you have any questions feel free to contact us!

I am Annette Ferguson, CEO of Annette & Co. Chartered Accountant, Profit First Professional and creator of the Business Wealth Engine. We’re also SUPER social so don’t forget to follow. Here’s to your success!