Book transfer definition

What is a Book Transfer?

A book transfer is the transfer of the legal right of ownership of an asset, without physically shifting the asset to the new owner. The most common use of the concept is when a bank transfers funds from the account of the payer to the account of the payee when both accounts are with the same bank. Another example is when the owner of a checking account moves funds from that account to a savings account at the same bank. This results in the very fast clearing of funds, so that the payee can use the transferred cash almost immediately.

Related AccountingTools Courses

Corporate Cash Management

Payables Management

Treasurer's Guidebook