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E
email4
August 30, 2021
Solved

BBL Repayment

  • August 30, 2021
  • 1 reply
  • 1 view

Hi,

So I have a liability account, that has a Bounce Back Loan in it. 

Lets say for £10,000. 

It's Negative £10,000. That's correct. Fine. 

So I sync my bank transactions and apply the payment to that account. That's fine. 

But  my interest has started coming off as well, it comes off the Bounce Bank Loan account and adds onto the balance. 

How do I reflect these interest payments in the BBL account and apply them to a expense P&L? 

 

 

Best answer by JasroV

Thanks for your prompt reply, @email4.

 

I'll share some other ways to reflect those interest payments as expenses in your BBL account. 

 

You'll want to manually add an expense transaction to your BBL account to show the interest payments as an expense. I'll show you how.

 

  1. Go to the Accounting menu in your QuickBooks Online (QBO) account.
  2. Select Chart of accounts.
  3. Locate and double-click your BBL account to open it.
  4. From the top of the list, select the Add cheque or Add Expense drop-down and select Expense. 
  5. Fill out the fields to complete the transaction, then click Save.

 

You can also check this link for more details about the process: Manually add transactions to accounts in QuickBooks Online.

 

Moreover, I still encourage you to check with your accountant or visit our ProAdvisor page to look for one from there. This way, you'll be guided accordingly in recording this. They can also provide you on other ways to record this.

 

Once you're all set, feel free to check out this article for reference. This can walk you through the process of flawlessly matching your book and bank accounts: Reconcile an account in QuickBooks Online.

 

I'll be here if you have any additional questions about recording your expenses in QBO. Keep safe!

1 reply

R
Ryan_MModerator
Moderator
August 31, 2021

I'll share insight on your query about a bounce-back loan repayment along with its interest, @email4.

 

You can create a cheque or an expense transaction to record the payment for this type of loan. To include interest payments, add them as another line item. Assign a specific expense account for these interest payments so you can have them show up in the Profit and Loss report. 

 

Please be advised that it's best to consult an accountant for this matter. They can guide you with what accounts to use, so you can keep your books accurate. 

 

Let me know in the comments below if you have other questions about bounce-back loans in QuickBooks Online. I'll be around to help you out. Have a pleasant day!

E
email4Author
August 31, 2021

This does not help. 

I need to add this into the BBL account and show it as an expense 

J
JamesCParsons
December 2, 2022

Hi James thanks for coming back to us and with a screenshot, what kind of account are you in on the chart of account? If you are in an liability account there is no expense option just the transfer and journal entry option, you can't create an expense from liability account because it's a transaction that takes a fund from the account. If you're in the bank account you should have all of them in the list.


So to record the interest element of a loan which is an expense, I cannot record it in the liability account related to that loan? What is the appropriate account to add this interest as an expense?

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