Using our "Transfer between business accounts" category provides a seamless, hassle-free way of recording the sending and receiving of money between your business accounts.
Assuming the relevant accounts are both connected to Ember, this is the category that should be used and more information on that can be found here.
Following our transactions overhaul which brought major improvements to the transactions experience, you may have noticed some changes around this category which have introduced some new queries that we hope to address in this article.
Why can't I see the "Transfer between business accounts" category?
If you only have one business account connected to Ember you will not be able to see the "Transfer between business accounts" category any more. This is because if you have only one business account it should not be feasible to have a bank transfer. If you have transferred funds to a personal account this needs to be recorded as dividends/salary/director's loan depending on what was intended.
Are my transfers still linked to each other?
Yes! On the old UI, there was an option to "link" the transfers together and approve them at the same time. However, based on feedback from clients we found that this UI was confusing to some so we have simplified the process by removing the option to link transfers.
Rest assured the transfers are still linked and they still net off against each other just like before! This simply happens automatically in the background now.
Does transfers still use my directors loan account as a balancing account?
No! - this caused lots of confusion for clients previously so we have decided to instead use suspense as the balancing account for these transfers. If a balance remains on suspense after categorising all transfers correctly then this would need to be investigated as part of your year end accounts or feel free to reach out to our team to check in the interim.
For Monzo & Starling clients, please note that the "transfer between business accounts" category shouldn't be used if you're transferring money from a tax "pot". That should be assigned to "Prepayments" and you can read more on that here
If you have any further questions regarding transfers between your accounts, please reach out to our team and we will be more than happy to assist.