How to Set up a Loan in QuickBooks?

How to Set up a Loan in QuickBooks?

Learn how to record a loan in QuickBooks Online. Did you recently get a loan? In QuickBooks Online, you can set up a liability account to record the loan and its payments .

Step 1: Set up a liability account to record what you owe: First, set up a liability account to record the loan: 1. Select Settings ⚙, then pick out Chart of Accounts.

2. Select New to create a brand new account.

3. From the Account Type ▼ dropdown menu, select Non-Current Liabilities. Note: If you intend to pay off the loan by means of the end of the current financial year, select Current Liabilities instead.

4. From the Detail Type ▼ dropdown, select Notes Payable (or Loan Payable).

5. Give the account a relevant name, like "Loan for a car" or "Covid-19 alleviation loan."

6. Choose while you need to begin monitoring your finances. In the Unpaid Balance field, enter the amount within the account, and determine the as of date. Enter present day date if you need to begin monitoring immediately.

7. Select Save and close.

Step 2: Record the money you got from the loan: Now that you have an account to track what you owe for the loan.

Here's how to track the loan money you have to spend. You can enter it all at once, or as in partial payments as you get them.

1. Select + New. 2. Select Journal entry.

3. On the first line, pick the legal responsibility account you just made out of the Account dropdown. Enter the mortgage amount within the Credits column.

4. On the second one line, choose the perfect asset account from the Account dropdown. Enter the same loan amount in the Debits column.

This money is an asset to your business.

Note: To pay and amortize the debt of an intangible asset, see the Amortization schedule in QuickBooks Online.

Step 3: Record a loan payment: 1. Select + New. 2. Select Cheque.

3. Add a cheque number if you send a real cheque. If you use direct withdrawal of EFT, enter Debit or EF in the Cheque # field.

4. Enter the following facts in the Category Details section.

A. First line: Liability account for the mortgage and the amount of payment.

B. Second Line: Expense account for the hobby and the quantity.

C. Additional lines: Any additional expenses along with the precise accounts.

5. Select Save and close.

How to contact?

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