What is the best practice for making an EFT?

• A. Use a separate EFT entry in the bank feed
• B. Create a vendor bill and mark as EFT
• C. Send money through a credit card payment
• D. Record a check or expense and label it as an EFT

Answer: (D)

When you make an EFT, you want the QuickBooks entry to mirror the actual bank transfer and tie to the expense or liability you’re paying. The best practice is to record the payment as a check or expense and set the payment method to EFT. This creates a single, clear transaction that links the payment to the vendor’s bill or the expense being paid, making reconciliation with your bank statement straightforward. It avoids creating a separate EFT line that might not align with the bank’s record, and it captures the transfer in the same way you actually moved funds. Using a credit card isn’t an EFT, and while paying a bill by EFT is valid, recording the payment as a check/expense with EFT as the method provides a consistent, reconciliable record for most EFT payments.