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william27
Level 2

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

 
Solved
Best answer May 19, 2020

Accepted Solutions
MaryJoyD
QuickBooks Team

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

Hello, @william27.

 

You'll just have to set up a liability account to record what you owe. Then, record the money you got from the loan. 

 

To set up a liability account:

  1. Go to the Gear icon () and choose Chart of Accounts.
  2. Click New to create a new account.
  3. From the Account Type ▼ dropdown menu, select Non-current liabilitiesNote: If you plan to pay off the loan by the end of the current financial year, select Current Liabilities instead.
  4. From the Detail Type ▼ dropdown, select Notes Payable (or Loan Payable).
  5. Set a name like "Bounce back loan."
  6. Select Save and close.

From here, you can now track what you owe for the loan by adding a journal entry:

  1. Click the + New and chose Journal entry.
  2. On the first line, select the liability account you just created from the Account dropdown. Enter the loan amount in the Credits column.
  3. On the second line, select the appropriate asset account from the Account dropdown. Enter the same loan amount in the Debits column.

You'll just have to record the loan payment through writing a cheque. See this article for detailed guidance: Set up a loan in QuickBooks Online

 

Let us know if there's anything that I can help in recording your transactions. Have a great rest of the day!

View solution in original post

43 REPLIES 43
MaryJoyD
QuickBooks Team

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

Hello, @william27.

 

You'll just have to set up a liability account to record what you owe. Then, record the money you got from the loan. 

 

To set up a liability account:

  1. Go to the Gear icon () and choose Chart of Accounts.
  2. Click New to create a new account.
  3. From the Account Type ▼ dropdown menu, select Non-current liabilitiesNote: If you plan to pay off the loan by the end of the current financial year, select Current Liabilities instead.
  4. From the Detail Type ▼ dropdown, select Notes Payable (or Loan Payable).
  5. Set a name like "Bounce back loan."
  6. Select Save and close.

From here, you can now track what you owe for the loan by adding a journal entry:

  1. Click the + New and chose Journal entry.
  2. On the first line, select the liability account you just created from the Account dropdown. Enter the loan amount in the Credits column.
  3. On the second line, select the appropriate asset account from the Account dropdown. Enter the same loan amount in the Debits column.

You'll just have to record the loan payment through writing a cheque. See this article for detailed guidance: Set up a loan in QuickBooks Online

 

Let us know if there's anything that I can help in recording your transactions. Have a great rest of the day!

View solution in original post

Working_again
Level 2

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

I've had to do this, too, but I'm now confused. The money is in my bank account but, after entering the loan as a non-current liability, it doesn't show up in QBs as being in my bank. Why not? Do I have to do a bank deposit as well or will this show as me having double the amount? Thank you.

ChristieAnn
QuickBooks Team

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

Hi there, Working_again.

 

I'll provide additional information to clarify about entering loan transactions in QuickBooks Online.

 

Entering a loan transaction as a non-current liability in QuickBooks account is for tracking what you owe.

 

Yes, you'll have to enter a bank deposit first to show that there's money that was in your bank account. This could be the reason the transaction doesn't show up in QuickBooks as money in. 

 

Here's how:

 

  1. Click the New icon at the upper left corner.
  2. Choose Bank Deposit.
  3. From the Account drop-down arrow, choose the account you want to deposit the money into.
  4. Go to the Add funds to this deposit section.
  5. Enter the necessary fields.
  6. Hit Save and close.

 

However, if you have Online banking, you can add the money that was  deposited to your bank to show this in QBO. To do this, you'll need to go to the Banking page. You can click this article to see the steps: Categorise and match online bank transactions in QuickBooks Online.

 

Once done, you can now follow the steps provided by my colleague on how to set up a liability account to record what you owe and to track them.

 

Please check this article to see different options in recording a loan for a customer: Track customer loans.

 

Let me know if you have other concerns related to QuickBooks. I'm always here to help.

Working_again
Level 2

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

Thank you so much for your reply and for clearing that up for me  Smiley Happy

TCSUK
Level 1

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

I've followed the advice and set up the loan account but need to understand how i enter the loan received via the Banking menu option which matches bank transactions with Quickbooks.

The list of bank transactions shows the loan received in the bank account but when i try a match nothing is found and is I try to add the record I am asked for a supplier / customer name and category.

 

Do I need the loan provider as a Supplier and which Category should I use?

Working_again
Level 2

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

Hi there

 

Yes, you need to show a 'supplier'. So whoever you received the loan from will be the supplier.  For example, in my case, the supplier was Santander.  The loan entry that you've made is just for tracking the payments you make and, therefore, what the outstanding balance is.  You'll also need to put the VAT code as Exempt (Sales), as this is classed as Income.  This is the advice I was given by my accountant.

 

I hope this helps  Smiley Happy

TCSUK
Level 1

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

Thanks for that. Allowed the Banking functions to work ok

Simon Barnes
Level 1

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

What would be the correct way of doing something similar but using quickbooks 'Self Employed' ?

Mark_R
QuickBooks Team

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

Glad to have you here in the Community, @Simon Barnes.

 

In QuickBooks Self-Employed, you can record a transaction for the loan and categorise it to Personal Income if you receive it. Let me guide you through the steps.

 

  1. Click Transactions from the left menu.
  2. On the Transactions page, select Add transaction.
  3. Fill out the necessary information, then select Personal under the Type column.
  4. In the Category column, select Income from the list of categories.
  5. Click Save once finished.1.PNG

However, if you're trying to record the payment for the loan, you can select Repayments of loans/Overdrafts in the Category list. 

 

But most importantly, I encourage seeking help from your accountant. This way, they can offer you some advice on correct categories to use.

 

You might want to check out this article to learn more about loan categories: About SA103F Categories.

 

Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response. Have a great day.

bunsterbun
Level 1

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

Hi there,

 

I have followed the steps you suggested for recording my bounce back loan on quickbooks online - thank you for that - but my loan is showing as a credit in my profit and loss account, making it looks as though my profit is much higher than it should be. Have I done something wrong or is this correct?

 

Many thanks,

 

Clare

Ashleigh1
QuickBooks Team

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

Hello Clare, 

 

For a bounce bank loan, you should create a liability account for the loan then do a bank transfer from the loan account to the bank account, that will show as a liability, then you can just create expenses to the loan account when you pay it off. 

Mattman
Level 1

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

I followed this and my bank account now shows the bounce back loan x 3, bank account looks very healthy but obviously I need to get it right 🤦🏼‍♂️.

SarahannC
Moderator

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

I'd like to help you get these things right, Mattman.

 

Before that, can you tell me if you undergo the process of creating a journal entry to track the loan and also enter a bank deposit to record the loan? Normally, following the steps provided by MaryJoyD or ChristieAnn will only show the loan once. 

 

In your case, it would be better to review the steps to figure out if we missed anything or probably included steps that not necessary to follow. That's why the loan is showing three times.

 

First is to set up a liability account, we can review the steps shared by MaryJoydD above. Once done, create a journal entry and make sure to record the entries to the liability account you've recently created. If the transactions are in your bank, you can create a deposit by following ChristieAnn's suggestion. By following their steps, the loan should not appear thrice in your account. 

 

Here's an article where that Bounce back loan details can be found: QuickBooks business resources and tax info for COVID-19.

 

If you've not missed or have followed the steps properly, please let me know. I want to make sure that everything goes well. Just comment below if you have more something to clarify. I'll do my best to respond to you as soon as possible. Take care!

Mattman
Level 1

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

I really appreciate you getting back, I got my head right in the game this morning and I’m pretty sure I have solved it! I duplicated a couple of things and then lost them in QuickBooks which I’ve now found and amended it, seems to line up now.

 

Thank you.

Ldoon2
Level 1

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

Hi 

 

I followed the steps for non-current liabilities and the bbl amount shows in the balance sheet, when I then key the journal entry the amount doubles in the balance sheet - not sure what I am doing wrong?

GeorgiaC
QuickBooks Team

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

Thanks for getting back to us on this thread, Ldoon2.

 

Have you already recorded the balance of the loan when creating the liability account or by creating a bank deposit to the loan account? 

 

If so you wouldn't need to create a journal entry as this would duplicate the amount. 

 

Thanks

Working_again
Level 2

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021


@Ldoon2 wrote:

Hi 

 

I followed the steps for non-current liabilities and the bbl amount shows in the balance sheet, when I then key the journal entry the amount doubles in the balance sheet - not sure what I am doing wrong?


This is exactly what happened when I did it.  I followed it to the letter, without doing anything else, and the amount was doubled.  I asked my accountant and she wrote, 'Somehow an opening balance of £50,000 was input when the account was created.  This puts a journal on QB.  It wont let me delete the journal but I have amended the journal to be a 1p debit and a 1p credit.' 

GeorgiaC
QuickBooks Team

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

Hi Working_again, 

 

Thanks for getting back to us on this thread and sharing your solution.

 

When creating a new liability account it's possible to enter the opening balance in the 'unpaid balance' field, which would create a journal entry crediting the loan account and debiting the Opening Balance Equity account. As this method doesn't hit the bank account, it's best to create the loan account and then enter the opening balance via a journal entry or bank deposit.👍 

Ldoon2
Level 1

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

Thank you for the reply - I wasn't aware that I had creates the balance - I followed all the instructions - I think I have managed to amend now and balance sheet is now correct - many thanks for all the assistance.

GeorgiaC
QuickBooks Team

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

Happy to hear that's fixed it Ldoon2, thanks for getting back to us 😊👍 

Studio31
Level 1

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

Hi there

 

I have set up the liability account as per below but now it is nowhere to be seen in quickbooks?

I have then gone to enter a journal entry and it is now saying Notes Payable as non-current liabilities rather than the name of the account "Bounce Back" I am also confused as it I put in a credit and then a debit surely they will cancel each other out? What is a an assett account? And should I do this before or after I pull the transaction in on the banking section??

Many thanks

AJM Gas
Level 1

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

Once I have set up the loan liability in the chart of accounts, when making the journal entry, do I use the figures in the loan agreement (i.e. the loan plus the interest) or do I use the figures for the loan funds received?

GeorgiaC
QuickBooks Team

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

Hi Studio31, 

 

Thanks for joining this thread. An asset account is used for tracking things that your company owns, like property or vehicles - you can see more on this here.

 

Are you able to locate the Bounce Back account by going to Accounting > Chart of Accounts and using the search bar there? If not, you can create the account or re-name one of the existing non-current liability accounts by selecting the drop-down against the account > edit. 

 

The credits and debits on the journal entry should both balance each other out, with the credits posting to the liability account and the debits to the bank account to which the money was received to. 🙂

 

 

GeorgiaC
QuickBooks Team

For UK entries, How do i enter my Covid19 "Bounce back loan" into Quickbooks. Repayments don't start until May 2021

Hi AJM Gas, 

 

You'd enter the loan amount which has been received so far and then record the interest when this is incurred - if you're unsure however it's always best to run it by your bookkeeper/accountant. 👍

 

Thanks!

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