Understand transfer detection
Transfers are internal money movement. LeedBooks should recognize them so they do not become fake income or fake expenses.
What a transfer is
A transfer moves money between accounts that belong to the business.
Examples include moving money from checking to savings, paying a credit card from a bank account, moving money into a tax reserve account, or transferring between connected business accounts.
If money moves from one business account to another, it should not increase income or expenses. It should be matched as internal movement.
LeedBooks sees a transaction that looks like internal movement.
It looks for the other side by date, amount, direction, and account.
Unclear matches can be sent for human approval before posting.
Why it matters
Transfer mistakes can badly distort reports.
If a transfer into checking is treated as income, revenue looks too high. If a credit card payment is treated as an expense, expenses may be counted twice because the original card purchases were already expenses.
Good transfer recognition keeps the reports honest.
Matching the other leg
A strong transfer match usually has an opposite transaction.
LeedBooks can look for:
- Same or very close amount.
- Opposite direction.
- Nearby dates.
- Related account names.
- Bank descriptions that mention transfers, payments, or account movement.
- Prior rules or approvals for the same pattern.
If the match is strong, the AI can prepare the transfer. If the match is weak, it should ask for approval.
What needs review
Some transfers still need a human decision.
Review when:
- Only one side of the transfer is visible.
- The amount is close but not exact.
- The date is several days apart.
- The description is ambiguous.
- A payment platform hides the real purpose.
- The transaction might be an owner draw, loan, reimbursement, or income deposit.
This keeps automation useful without forcing a bad guess.
Common examples
Common transfer-like activity includes:
- Checking to savings.
- Savings to checking.
- Business checking to tax savings.
- Bank payment to business credit card.
- Payment processor payout to bank.
- Wise or similar account movement.
Payment processor payouts need extra care. A payout can contain real customer income, fees, refunds, or transfers depending on the business.
Use transfers in month-end close
Transfer review is one of the checks that helps make month-end reports trustworthy.
Read month-end guide