Record a director's loan in QuickBooks

As a company director, you might sometimes pay for business expenses using your own money. Whether it’s a client lunch or new office equipment, it’s important to record these transactions so your accounts stay accurate.

Step1: Set up the director's loan account

1. Follow this link to complete the steps in product
2. Select New.
3. Fill in the fields:
   • Account Type: Non-current liabilities
   • Detail Type: Shareholder Notes Payable
   • Name: [Director's name] Loan Account
   • Description: (Optional) Add details to help identify the account’s purpose
4. In Unpaid balance, enter the amount the company owes to the director and the date it was owed.
5. Select Save and close.

Step 2: Record the payment for the loan

1. Select + New or + Create..
2. Select Journal entry.
3. In the Account column:
   First line: Select the company bank account (payment source).
   Second line: Select the director’s loan account (payment destination).
4. In the Credits column for the bank account line, enter the repayment amount.
5. In the Debits column for the loan account line, enter the same amount.
6. Add a note in the Memo field for reference.
7. Select Save and close.

Step 3: Track loan payments

It's important to keep track of all the money coming in and going out of your company. One way to do this is by opening the director's loan account register.

1. Go to Settings ⚙.
2. Select Chart of accounts.
3. Find the director’s loan account and select Account history.

Here you can review the original loan amount and all repayments made by the business.