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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?
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Reports and accounting
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
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Reports and accounting
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:
- Go to Lists at the top menu bar, then select Chart of Accounts.
- Click on the Account drop-down, then choose New.
- 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. - Click on the Continue button, and enter the account’s name.
- Fill in the necessary fields.
- Click on Save & Close.
After setting up the account, you can now record the loan amount. Let me guide you how.
- Go to Banking at the top menu bar, then select Make Deposits.
- In the Deposit To section, choose the account you want to record the transaction.
- Enter the date.
- Click on the Received From drop-down, and select the appropriate name.
- In the From Account drop-down, enter the name of the liability account.
- In the Amount column, type the loan amount.
- Click the Save button.
Once done, input the payment. I’ll walk you through the steps.
- Go to Banking at the top menu bar, then select Write Checks.
- Select the correct bank account you’ll use to pay the loan.
- In the Pay to the Order of field, select the name of the bank.
- Go to the Expenses window.
- On the first line, choose the liability account you created and enter the payment for the principal amount.
- On the second line, select an interest expense account and record the payment for the loan interest.
- 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.