New Car Loan for Business

Glad to see you here in the Community, @Genie01.

Let me step in and answer every question you've got about recording a loan and depreciation in QuickBooks Online (QBO). 

Yes, we need to set up an Expense account to track interest charges, fees, and other expenses for the loan. If you've created one already, I suggest reaching out to your accountant for further guidance on what specific expense account to select. If none, we'll have to create an expense account.

Here's how to record each payment:

1. In the Accountant view, Go to + New and select Check.
2. Put a check number if you're planning to send an actual check. If you use direct withdrawal or an EFT, enter Debit or EFT in the Check no. field.

Once done, enter the following in the Category details section of the check:

1. From the Category dropdown, select the liability account on the first line for the loan and enter the payment amount.
2. Select the expense account on the second line from the Category dropdown and enter the interest amount. 
3. On the following lines, add any additional fees and select the appropriate accounts from the Category dropdown.
4. When done, click Save and close.

To address your second question about the depreciation of your asset, I recommend consulting your accountant. It's difficult to calculate asset depreciation, and only your accountant knows the best approaches. 

To record it in QBO, you can follow the steps stated in this article: Depreciate assets in QuickBooks Online.

Once everything is set, you can reconcile your accounts to review if they matched your bank and credit card statements. This way, we'll know if your accounts are balanced and accurate.

The QuickBooks Community is always alert for further clarifications you have about recording a loan and depreciation. Just leave a reply below, and we'll attend to your every concern. Stay safe!