diff --git a/app/controllers/transactions_controller.rb b/app/controllers/transactions_controller.rb
index 5e7322ad..36e45b01 100644
--- a/app/controllers/transactions_controller.rb
+++ b/app/controllers/transactions_controller.rb
@@ -49,16 +49,20 @@ class TransactionsController < ApplicationController
   end
 
   def new
-    @transaction = Transaction.new
+    @transaction = Transaction.new.tap do |txn|
+      if params[:account_id]
+        txn.account = Current.family.accounts.find(params[:account_id])
+      end
+    end
   end
 
   def edit
   end
 
   def create
-    account = Current.family.accounts.find(params[:transaction][:account_id])
-
-    @transaction = account.transactions.build(transaction_params)
+    @transaction = Current.family.accounts
+      .find(params[:transaction][:account_id])
+      .transactions.build(transaction_params.merge(amount: amount))
 
     respond_to do |format|
       if @transaction.save
@@ -118,6 +122,18 @@ class TransactionsController < ApplicationController
       @transaction = Transaction.find(params[:id])
     end
 
+    def amount
+      if nature.income?
+        transaction_params[:amount].to_d * -1
+      else
+        transaction_params[:amount].to_d
+      end
+    end
+
+    def nature
+      params[:transaction][:nature].to_s.inquiry
+    end
+
     # Only allow a list of trusted parameters through.
     def transaction_params
       params.require(:transaction).permit(:name, :date, :amount, :currency, :notes, :excluded, :category_id)
diff --git a/app/helpers/forms_helper.rb b/app/helpers/forms_helper.rb
index ac138976..ea7f24db 100644
--- a/app/helpers/forms_helper.rb
+++ b/app/helpers/forms_helper.rb
@@ -2,4 +2,19 @@ module FormsHelper
   def form_field_tag(&)
     tag.div class: "form-field", &
   end
+
+  def radio_tab_tag(form:, name:, value:, label:, icon:, checked: false, disabled: false)
+    form.label name, for: form.field_id(name, value), class: "group has-[:disabled]:cursor-not-allowed" do
+      concat radio_tab_contents(label:, icon:)
+      concat form.radio_button(name, value, checked:, disabled:, class: "hidden")
+    end
+  end
+
+  private
+    def radio_tab_contents(label:, icon:)
+      tag.div(class: "flex px-4 py-1 rounded-lg items-center space-x-2 justify-center text-gray-400 group-has-[:checked]:bg-white group-has-[:checked]:text-gray-800 group-has-[:checked]:shadow-sm") do
+        concat lucide_icon(icon, class: "w-5 h-5")
+        concat tag.span(label, class: "group-has-[:checked]:font-semibold")
+      end
+    end
 end
diff --git a/app/models/account.rb b/app/models/account.rb
index 550e0279..b1d6aec1 100644
--- a/app/models/account.rb
+++ b/app/models/account.rb
@@ -17,6 +17,7 @@ class Account < ApplicationRecord
   scope :active, -> { where(is_active: true) }
   scope :assets, -> { where(classification: "asset") }
   scope :liabilities, -> { where(classification: "liability") }
+  scope :alphabetically, -> { order(:name) }
 
   delegated_type :accountable, types: Accountable::TYPES, dependent: :destroy
 
diff --git a/app/models/transaction/category.rb b/app/models/transaction/category.rb
index 614ec82b..97439f68 100644
--- a/app/models/transaction/category.rb
+++ b/app/models/transaction/category.rb
@@ -6,6 +6,8 @@ class Transaction::Category < ApplicationRecord
 
   before_update :clear_internal_category, if: :name_changed?
 
+  scope :alphabetically, -> { order(:name) }
+
   COLORS = %w[#e99537 #4da568 #6471eb #db5a54 #df4e92 #c44fe9 #eb5429 #61c9ea #805dee #6ad28a]
 
   UNCATEGORIZED_COLOR = "#737373"
diff --git a/app/views/accounts/_transactions.html.erb b/app/views/accounts/_transactions.html.erb
index cc050643..ad040ff7 100644
--- a/app/views/accounts/_transactions.html.erb
+++ b/app/views/accounts/_transactions.html.erb
@@ -1,8 +1,8 @@
-<%# locals: (transactions:)%>
+<%# locals: (account:, transactions:)%>
 <div class="bg-white space-y-4 p-5 border border-alpha-black-25 rounded-xl shadow-xs">
   <div class="flex justify-between items-center">
     <h3 class="font-medium text-lg">Transactions</h3>
-    <%= link_to new_transaction_path, class: "flex gap-1 font-medium items-center bg-gray-50 text-gray-900 p-2 rounded-lg" do %>
+    <%= link_to new_transaction_path(account_id: account), class: "flex gap-1 font-medium items-center bg-gray-50 text-gray-900 p-2 rounded-lg", data: { turbo_frame: :modal } do %>
       <%= lucide_icon("plus", class: "w-5 h-5 text-gray-900") %>
       <span class="text-sm">New transaction</span>
     <% end %>
diff --git a/app/views/accounts/show.html.erb b/app/views/accounts/show.html.erb
index 48be2c56..7ef90757 100644
--- a/app/views/accounts/show.html.erb
+++ b/app/views/accounts/show.html.erb
@@ -71,7 +71,7 @@
         <%= render partial: "accounts/account_history", locals: { account: @account, valuations: @valuation_series } %>
       </div>
       <div data-tabs-target="tab" id="account-transactions-tab" class="hidden">
-        <%= render partial: "accounts/transactions", locals: { transactions: @account.transactions.order(date: :desc) } %>
+        <%= render partial: "accounts/transactions", locals: { account: @account, transactions: @account.transactions.order(date: :desc) } %>
       </div>
     </div>
   </div>
diff --git a/app/views/shared/_modal.html.erb b/app/views/shared/_modal.html.erb
index 511991e0..75174faf 100644
--- a/app/views/shared/_modal.html.erb
+++ b/app/views/shared/_modal.html.erb
@@ -1,6 +1,6 @@
 <%# locals: (content:) -%>
 <%= turbo_frame_tag "modal" do %>
-  <dialog class="bg-white border border-alpha-black-25 rounded-2xl max-h-[556px] max-w-[580px] w-full shadow-xs h-full" data-controller="modal" data-action="click->modal#clickOutside">
+  <dialog class="bg-white border border-alpha-black-25 rounded-2xl max-h-[648px] max-w-[580px] w-full shadow-xs h-full" data-controller="modal" data-action="click->modal#clickOutside">
     <div class="flex flex-col h-full">
       <%= content %>
     </div>
diff --git a/app/views/transactions/_form.html.erb b/app/views/transactions/_form.html.erb
index 7799f8c2..2db4d837 100644
--- a/app/views/transactions/_form.html.erb
+++ b/app/views/transactions/_form.html.erb
@@ -1,7 +1,21 @@
-<%= form_with model: @transaction do |f| %>
-  <%= f.collection_select :account_id, Current.family.accounts, :id, :name, { prompt: "Select an Account", label: "Account" } %>
-  <%= f.date_field :date, label: "Date" %>
-  <%= f.text_field :name, label: "Name", placeholder: "Groceries" %>
-  <%= f.money_field :amount_money, label: "Amount" %>
-  <%= f.submit %>
+<%= form_with model: @transaction, data: { turbo: false } do |f| %>
+  <section>
+    <fieldset class="bg-gray-50 rounded-lg p-1 grid grid-flow-col justify-stretch gap-x-2">
+      <%= radio_tab_tag form: f, name: :nature, value: :expense, label: t(".expense"), icon: "minus-circle", checked: true %>
+      <%= radio_tab_tag form: f, name: :nature, value: :income, label: t(".income"), icon: "plus-circle" %>
+      <%= radio_tab_tag form: f, name: :nature, value: :transfer, label: t(".transfer"), icon: "arrow-right-left", disabled: true %>
+    </fieldset>
+  </section>
+
+  <section class="space-y-2">
+    <%= f.text_field :name, label: t(".description"), placeholder: t(".description_placeholder"), required: true %>
+    <%= f.collection_select :account_id, Current.family.accounts.alphabetically, :id, :name, { prompt: t(".account_prompt"), label: t(".account") }, required: true %>
+    <%= f.money_field :amount_money, label: t(".amount"), required: true %>
+    <%= f.collection_select :category_id, Current.family.transaction_categories.alphabetically, :id, :name, { prompt: t(".category_prompt"), label: t(".category") }, required: true %>
+    <%= f.date_field :date, label: t(".date"), required: true %>
+  </section>
+
+  <section>
+    <%= f.submit t(".submit") %>
+  </section>
 <% end %>
diff --git a/app/views/transactions/index.html.erb b/app/views/transactions/index.html.erb
index ee244218..829b6575 100644
--- a/app/views/transactions/index.html.erb
+++ b/app/views/transactions/index.html.erb
@@ -3,7 +3,7 @@
     <h1 class="text-xl">Transactions</h1>
     <div class="flex items-center gap-5">
       <div class="flex items-center gap-2">
-        <%= link_to new_transaction_path, class: "rounded-lg bg-gray-900 text-white flex items-center gap-1 justify-center hover:bg-gray-700 px-3 py-2" do %>
+        <%= link_to new_transaction_path, class: "rounded-lg bg-gray-900 text-white flex items-center gap-1 justify-center hover:bg-gray-700 px-3 py-2", data: { turbo_frame: :modal } do %>
           <%= lucide_icon("plus", class: "w-5 h-5") %>
           <p>New transaction</p>
         <% end %>
diff --git a/app/views/transactions/new.html.erb b/app/views/transactions/new.html.erb
index 03da6bb2..9ad41294 100644
--- a/app/views/transactions/new.html.erb
+++ b/app/views/transactions/new.html.erb
@@ -1,7 +1,10 @@
-<div class="mx-auto md:w-2/3 w-full">
-  <h1 class="font-bold text-4xl mb-4">New transaction</h1>
-  <%= render "form", transaction: @transaction %>
-</div>
-<div class="flex justify-center">
-  <%= link_to "Back to transactions", transactions_path, class: "mt-8 underline text-lg font-bold" %>
-</div>
+<%= modal do %>
+  <article class="mx-auto w-full p-4 space-y-4">
+    <header class="flex justify-between">
+      <h2 class="font-medium text-xl">New transaction</h2>
+      <%= lucide_icon "x", class: "w-5 h-5 text-gray-500", data: { action: "click->modal#close" } %>
+    </header>
+
+    <%= render "form", transaction: @transaction %>
+  </article>
+<% end %>
diff --git a/config/locales/views/transaction/en.yml b/config/locales/views/transaction/en.yml
index 8e31011e..740d27cb 100644
--- a/config/locales/views/transaction/en.yml
+++ b/config/locales/views/transaction/en.yml
@@ -14,5 +14,18 @@ en:
       success: New transaction created successfully
     destroy:
       success: Transaction deleted successfully
+    form:
+      account: Account
+      account_prompt: Select an Account
+      amount: Amount
+      category: Category
+      category_prompt: Select a Category
+      date: Date
+      description: Description
+      description_placeholder: Describe transaction
+      expense: Expense
+      income: Income
+      submit: Add transaction
+      transfer: Transfer
     update:
       success: Transaction updated successfully
diff --git a/test/controllers/transactions_controller_test.rb b/test/controllers/transactions_controller_test.rb
index 168523e5..c57f1403 100644
--- a/test/controllers/transactions_controller_test.rb
+++ b/test/controllers/transactions_controller_test.rb
@@ -16,6 +16,12 @@ class TransactionsControllerTest < ActionDispatch::IntegrationTest
     assert_response :success
   end
 
+  test "prefills account_id if provided" do
+    get new_transaction_url(account_id: @transaction.account_id)
+    assert_response :success
+    assert_select "option[selected][value='#{@transaction.account_id}']"
+  end
+
   test "should create transaction" do
     name = "transaction_name"
     assert_difference("Transaction.count") do
@@ -25,6 +31,51 @@ class TransactionsControllerTest < ActionDispatch::IntegrationTest
     assert_redirected_to transactions_url
   end
 
+  test "creation preserves decimals" do
+    assert_difference("Transaction.count") do
+      post transactions_url, params: { transaction: {
+        nature: "expense",
+        account_id: @transaction.account_id,
+        amount: 123.45,
+        currency: @transaction.currency,
+        date: @transaction.date,
+        name: @transaction.name } }
+    end
+
+    assert_redirected_to transactions_url
+    assert_equal 123.45.to_d, Transaction.order(created_at: :desc).first.amount
+  end
+
+  test "expenses are positive" do
+    assert_difference("Transaction.count") do
+      post transactions_url, params: { transaction: {
+        nature: "expense",
+        account_id: @transaction.account_id,
+        amount: @transaction.amount,
+        currency: @transaction.currency,
+        date: @transaction.date,
+        name: @transaction.name } }
+    end
+
+    assert_redirected_to transactions_url
+    assert Transaction.order(created_at: :desc).first.amount.positive?, "Amount should be positive"
+  end
+
+  test "incomes are negative" do
+    assert_difference("Transaction.count") do
+      post transactions_url, params: { transaction: {
+        nature: "income",
+        account_id: @transaction.account_id,
+        amount: @transaction.amount,
+        currency: @transaction.currency,
+        date: @transaction.date,
+        name: @transaction.name } }
+    end
+
+    assert_redirected_to transactions_url
+    assert Transaction.order(created_at: :desc).first.amount.negative?, "Amount should be negative"
+  end
+
   test "should show transaction" do
     get transaction_url(@transaction)
     assert_response :success