Moving money between two accounts owned by the same business does not create a new customer sale. When a deposit is a transfer, trace the corresponding withdrawal and connect the records. Looking only at the receiving account can make revenue appear larger than the underlying activity.
Look for the other side
Compare the amount, date, account ownership, and transfer reference. The two dates may differ because of processing time. A matching amount alone is not conclusive evidence: several transactions can share the same amount.
If the sending account belongs to an owner or another entity, stop treating it as an ordinary same-business transfer until the relationship and purpose are documented. The records need to show what actually happened, and the accountant may need to determine the appropriate treatment.
A simple two-account example
An illustrative business moves $2,500 from operating checking to business savings. Checking falls by $2,500 and savings rises by $2,500. Across those two accounts, total cash is unchanged. Recording the savings deposit as a new sale would count income that the transfer itself did not earn.
| Record | Cash movement |
|---|---|
| Operating checking | ($2,500) |
| Business savings | $2,500 |
| Combined change | $0 |
The example assumes both accounts belong to the same business and that there are no fees or currency differences.
Watch for duplicate entries
A transfer may already have been entered before the bank-feed transaction arrives. Review existing records before creating another entry. If both bank feeds are connected, confirm the final records describe one movement with two sides rather than two unrelated transfers.
Software matching behavior varies. Preserve the bank references and use the current product documentation for the specific workflow instead of forcing a match on amount alone.
Handle fees separately
If the receiving amount differs because of a documented fee, keep the fee evidence and explain the difference. Do not quietly change the transfer amount just to make the feeds agree.
Add a monthly check
Review deposits with vague descriptions and transfers whose other side has not been identified. A short list of unresolved movements can prevent the same questions from resurfacing during the next close.
Include new accounts and unusual transfers in the monthly owner packet so the bookkeeper has context before interpreting the bank activity.
Sources and further reading
Source links provide background. The workflow and illustrative examples above are original educational material.