What Was That Transfer For? Help Your Bookkeeper Help You

When you're running a business, moving money around is part of the job. Maybe you’re paying off a loan, transferring money between accounts, or putting your own money into the business.

But here’s the thing: if you don’t tell your bookkeeper what that money was for, they’re left guessing. And when your bookkeeper has to guess, your reports can end up wrong. That means you might not know how much money you really made, or how much you still owe.

Here’s how to keep things clear, clean, and easy.

Why Transfers Can Be Confusing

Not all transfers are the same—even if they look the same in your bank feed.

For example:

• $500 could be a loan payment

• $500 could be money moved to savings

• $500 could be you paying yourself

• $500 could be a vendor refund

To your bookkeeper, it’s all just $500 moving somewhere—unless you say what it is.

How to Make It Clear

Just a little info goes a long way. Try these simple steps:

• Add a Note - When you transfer money in your bank app or pay off a loan, write a quick note like “Loan payment to ABC Bank” or “Moved to savings.”

• Send a Quick Message - If you're not sure where to put a note, send your bookkeeper a quick email or text:“Hey, the $800 on 4/15 was a loan payment—let me know if you need details.”

• Let Them Know About Loans - If you're making payments on a loan, your bookkeeper needs to know how much goes to interest and how much goes to pay down the loan. That’s how they keep your loan balance accurate.

Why It Matters

When you explain your transfers:

• Your financial reports will be correct

• Your taxes will be easier

• You’ll understand your money better

• Your bookkeeper will love you (okay, extra like you)

Bottom line: Don’t leave your bookkeeper guessing. A quick note or message can save time, stress, and maybe even money.

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