- Write Cheque:
- This feature is specifically for making payments directly from a bank account to a vendor, employee, or other payee without the need for an invoice or accounts payable process. When you select “Write Check,” you choose the bank account the funds will be drawn from, specify the payee, enter details for what you’re paying for, and set an amount.
- It’s commonly used for immediate or one-time payments, reimbursements, and expenses that don’t require a formal billing process. Once submitted, the bank account balance decreases, reflecting the cash outflow.
- Make Deposit:
- “Make Deposit” is used to record incoming funds to a bank account. This function allows you to log cash inflows, including customer payments, refunds, and other income sources, directly into a specific bank account.
- This feature is especially useful for grouping undeposited funds. For instance, if you receive multiple payments over a day, you can enter each as a separate line item under one deposit transaction, making bank reconciliation easier. When a deposit is saved, it increases the bank account balance by the amount deposited.
- Transfer Funds:
- This feature is meant for moving funds between two internal bank accounts. For example, you might need to transfer cash from a checking account to a savings account or vice versa. Unlike Write Check or Make Deposit, which involve external parties (like vendors or customers), Transfer Funds is purely internal.
- With this function, you specify the “from” account and the “to” account, as well as the amount. The source account’s balance decreases by the transferred amount, while the destination account’s balance increases accordingly. Transfer Funds keeps inter-account transactions organized and doesn’t affect income or expenses, maintaining a balanced cash flow within the organization.
In summary:
- Use Write Check for direct outgoing payments.
- Use Make Deposit for recording and grouping incoming funds.
- Use Transfer Funds for moving money between your internal accounts without affecting the organization’s external financial transactions.