How do you record a bank transfer in QuickBooks Online?

Using the "Bank Transfer" option in QuickBooks Online is the correct method for recording a bank transfer because this feature is specifically designed to streamline the process of moving funds between two bank accounts within the software. When you select this option, it prompts you to specify the accounts involved in the transfer, including the amount and date, which helps ensure accuracy and proper documentation.

Furthermore, this method keeps transaction records clear and organized within the banking section, making it easier to reconcile accounts and maintain an accurate financial overview. The platform automatically updates both accounts affected by the transfer, ensuring that your financial reports reflect the changes in real-time.

Other methods, such as manual entries or journal entries, may not fully capture the specific nature of a bank transfer or could lead to complications in tracking, while directly adjusting bank balances bypasses necessary records and could result in discrepancies.