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Kennels9
Level 2

Business Loans

Hi,

I wonder if you could please advise. 

I was given a Bounce back loan from the bank for COVID-19 in 2020, how do I need to record this (payments are now being taken) this has been reconciled but I recorded it as uncategorised income so if I undo it will change the reconcilation? How do I update? Payments are now being paid to the loan.

 

I have also loan the company another amount of money from my personal account this year (I am the director of the company) how to I record this so I can ensure the repayments are also recorded properly.

 

Thanks for your help

Kennels9

Solved
Best answer August 08, 2021

Accepted Solutions
MaryJoyD
QuickBooks Team

Business Loans

I'm here to help you with recording your bounce back loan and the payment made, @Kennels9

 

In recording the bounce back loan, set up a liability account. Then, use that account in recording the amount you've got from the loan by creating a journal entry. 

 

The same goes with the company loan from your personal account, create a liability account for the journal entry to track the amount that they get from you. Then, write a cheque to track the repayments to your personal account.

 

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.

 

To record the money you got from the loan:

 

  1. Go to the + New button and choose 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.
  4. Click on Save and close once you're done.

 

You can now write a cheque to record the repayments:

 

  1. Go back to the + New button and select Cheque
  2. Provide all the necessary information about this cheque. 
  3. Enter your liability account, expense, and any additional fees account in the Category Details section of the cheque.
  4. Click Save and close once you're done. 

 

Refer to the following article for more information about setting up your accounts to track the loan and payments in QBO: Set up a loan in QuickBooks Online.

 

You can delete the uncategorised income that you've added initially, then manually reconcile those repayments. Here's how:

 

  1. Go to your Chart of Accounts and find your bank account, then click the View register link.
  2. Locate and select the repayments
  3. Under the Checkmark column, click the blank box until an "R" appears. 
  4. Click Save.

 

Check this article for more information about resolving issues you'll possibly encounter when reconciling your accounts: Fix issues at the end of a reconciliation in QuickBooks Online

 

To track the amount of money moving in and out of your business and bank account, refer to the following article for detailed guidance: Track your cash flow in QuickBooks Online. This will show you how to use different reports and projections in QBO. 

 

Let me know if there's anything that I can help in recording your transactions and or anything else, by leaving a reply below. Take care and have a great rest of the day!

View solution in original post

1 REPLY 1
MaryJoyD
QuickBooks Team

Business Loans

I'm here to help you with recording your bounce back loan and the payment made, @Kennels9

 

In recording the bounce back loan, set up a liability account. Then, use that account in recording the amount you've got from the loan by creating a journal entry. 

 

The same goes with the company loan from your personal account, create a liability account for the journal entry to track the amount that they get from you. Then, write a cheque to track the repayments to your personal account.

 

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.

 

To record the money you got from the loan:

 

  1. Go to the + New button and choose 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.
  4. Click on Save and close once you're done.

 

You can now write a cheque to record the repayments:

 

  1. Go back to the + New button and select Cheque
  2. Provide all the necessary information about this cheque. 
  3. Enter your liability account, expense, and any additional fees account in the Category Details section of the cheque.
  4. Click Save and close once you're done. 

 

Refer to the following article for more information about setting up your accounts to track the loan and payments in QBO: Set up a loan in QuickBooks Online.

 

You can delete the uncategorised income that you've added initially, then manually reconcile those repayments. Here's how:

 

  1. Go to your Chart of Accounts and find your bank account, then click the View register link.
  2. Locate and select the repayments
  3. Under the Checkmark column, click the blank box until an "R" appears. 
  4. Click Save.

 

Check this article for more information about resolving issues you'll possibly encounter when reconciling your accounts: Fix issues at the end of a reconciliation in QuickBooks Online

 

To track the amount of money moving in and out of your business and bank account, refer to the following article for detailed guidance: Track your cash flow in QuickBooks Online. This will show you how to use different reports and projections in QBO. 

 

Let me know if there's anything that I can help in recording your transactions and or anything else, by leaving a reply below. Take care and have a great rest of the day!

View solution in original post

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