A transfer between accounts is when money is moved from one account into another. Most commonly in REI Hub, this refers to moving money from one bank account to another bank account (i.e., checking to savings accounts).

Internal transfers are not taxable events and do not impact your taxable income. Transfers are not classified as taxable events because they represent the movement of existing funds rather than income realization. Unlike standard transactions, transfers do not appear in the Net Income report, ensuring accurate financial tracking without duplication.

Transfers are generally not assigned to properties since they serve mainly as placeholders for fund movement between two bank accounts assigned for the entire portfolio. If the two accounts were opened for and solely used for one property, then the transfer can be scoped to the property level.

A transfer between depository accounts can be money moving between two checking accounts, two savings accounts, or a checking and savings account.

Because we get the exact transaction history from BOTH accounts, the transaction will show up twice -- one transaction will be the money leaving the first account, and one transaction will be the money arriving in the second account. This is exactly what we want to see!

When you click Book on one of the transactions (it doesn't matter which one), you'll use the Transfer Between Accounts transaction type. If both of the transactions, outgoing and incoming, are unbooked, then a blue square will populate, showing there is a match.

As mentioned, a transfer is generally scoped to the entire portfolio level, unless you have sub-accounts set up for LLC separation or both bank accounts are opened specifically for one property.

Each credit card payment will appear in the import feed for two accounts: the withdrawal from the checking account and the deposit in the credit card account.
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When both transactions have not yet been booked or categorized, you can click Book on either transaction, and it will find the other transaction and recommend a match that ties both imported transactions to opposite sides of the same journal, showing funds moving from your checking to pay down your credit card balance.
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Recording these two points of contact in the same journal is one of the ways that a double-entry accounting system (like REI Hub) helps you keep accurate books without creating duplicate entries.
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A credit card payment is a transfer between accounts, so it doesn't count as revenue or an expense. This just shows the movement of money from a checking/savings account, which reduces the liability of the credit card balance.

When dealing with transfers involving closed or inactive bank accounts in REI Hub, there are several approaches depending on whether the account is still tracked in the system or not. This guide provides step-by-step instructions to ensure accurate financial records.

Closed or inactive bank accounts can complicate transaction reconciliation. REI Hub offers flexible options to handle these scenarios, ensuring your financial records remain accurate and compliant. Below, we outline the steps for managing transfers to closed or inactive accounts.

If you're booking transactions in an active bank account and realize a transfer was made to a closed bank account you've marked as inactive in REI Hub, follow these steps:

If the closed bank account is still active in REI Hub, you'll make sure both transactions are unbooked, then utilize the Transfer Between Accounts transaction type to book the transfer. If both sides of the transfer, outgoing and incoming, are unbooked, it will present a blue box matching the two together in an underlying journal.
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This is what the blue match box looks like:

If the closed bank account was never linked or tracked in REI Hub, then you'll record the withdrawal as an owner distribution, using the Owner Funds equity account. This method books the transaction and reduces your Owner Funds equity and active bank balance without creating deductible expenses or affecting taxable net income.

If you are tracking multiple LLCs in REI Hub and have them grouped with sub-portfolios, how to book transfers may differ for you. If you are moving money within the same LLC's bank accounts, then you can utilize the Transfer transaction type, since a Transfer transaction allows for one transaction scope. If you are moving money between bank accounts in different LLC entities, then you will want to use the transaction types Owner Contribution and Owner Distribution. Using the Owner Contribution and Owner Distribution transaction types to move money across bank accounts in different LLCs will allow you to set two individual transaction scopes, depending on which LLC owns the bank account distributing the money vs the one receiving the money.

For more information, check out this Knowledge Base article: Managing Portfolios and Legal Entities