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Established Member

Start up Business Loan

How do I record a loan that was given to me back in Oct. 2018 to begin payments in March 2019?

2 Comments
Established Community Backer ***

Re: Start up Business Loan

Where did you record the receipt of the funds? It should have been as a liability account deposited to banking or used to directly buy stuff. The terms and when payments start have nothign to do with establishing your liability as of October 2018

QuickBooks Team

Re: Start up Business Loan

Greetings, Lpyles.


Let me take the time to welcome you to the Quickbooks Family. I can point you in the right direction on how to record and pay the loan. 


In addition to @john-pero's answer, I’ve laid out the steps on how to input the transaction in QuickBooks. You’ll have to create the liability account first to track the loan.


Here’s how:

 

  1. Go to Lists at the top menu bar, then select Chart of Accounts.
  2. Click on the Account drop-down, then choose New.
  3. Mark the radio-button for Other Account Types.
    NOTE: Other Current Liability for short-term loans
    Long-term liability for loans payable over a longer period.
  4. Click on the Continue button, and enter the account’s name.
  5. Fill in the necessary fields.
  6. Click on Save & Close.


After setting up the account, you can now record the loan amount. Let me guide you how.

 

  1. Go to Banking at the top menu bar, then select Make Deposits.
  2. In the Deposit To section, choose the account you want to record the transaction.
  3. Enter the date.
  4. Click on the Received From drop-down, and select the appropriate name.
  5. In the From Account drop-down, enter the name of the liability account.
  6. In the Amount column, type the loan amount.
  7. Click the Save button.

Once done, input the payment. I’ll walk you through the steps.

 

  1. Go to Banking at the top menu bar, then select Write Checks.
  2. Select the correct bank account you’ll use to pay the loan.
  3. In the Pay to the Order of field, select the name of the bank.
  4. Go to the Expenses window.
  5. On the first line, choose the liability account you created and enter the payment for the principal amount.
  6. On the second line, select an interest expense account and record the payment for the loan interest.        
  7. Click on Save & Close.

Here’s an article with detailed information and screenshots on how to manually track loans.


These steps should get you pointed you in the right direction recording a loan.


If you need further assistance with any of these steps, post a comment below. I'm always ready to help. Wishing you continued success.