How to Record Balance Transfers

What are Balance Transfers?

When transferring money from one account to another, you'll want to record this as a balance transfer. When money moves between sale platform and bank account/bank account to bank account/bank account to credit card/etc, income isn't being earned and expenses aren't being incurred. The only thing that's happening is money is moving from one account to another.

Why Would We Record Them?

The best bookkeeping tracks all of your business transactions. While many resellers don't need to track these for tax purposes*, you won't be able to reconcile your books without tracking balance transfers. On top of that, it's super simple in MRG.

*If your business is a partnership, LLC with a corporation election, or a corporation, you'll need to track all your transactions for proper bookkeeping.

How to Record Them in My Reseller Genie

In order to record balance transfers, let's start by examining the transaction add/edit form. To classify a new or existing transaction as a balance transfer, click the "General Ledger Account" input and select the "Balance Transfer" option:

This will open the "Balance Transfer" screen where you will enter the amount that is being transferred and the information for each side of the transfer.

In the following example, $1000 is being transferred from eBay to PNC:

It's worth noting that you can have different dates for both sides of the transaction. Frequently, you may see different dates for when the funds left one account and when they appeared in the other, so this helps ensure your accounting records can align easily with your bank records.

How Balance Transfers Appear in MRG

MRG will show two transactions for each balance transfer. Each one will show "Balance Transfer" in the "General Ledger Account" and the impacted bank account/sale platform in the "Bank Account" field. For the transaction that we just reviewed, it would look like this:

Editing Balance Transfers

If you double click either side of the transaction, it will appear similar to the original "Balance Transfer" form. You can edit details as needed -- in case you accidentally recorded the transfer in the wrong direction, you can reverse the direction of the money with the swap icon: