I would like to loan my company money in order for the business to use as a deposit on a property purchase.
does anyone here know how to set up an account for me to loan the money to the company. Clearly I must pay the money into the company bank account. But I don’t know how to record this transaction on QuickBooks Online
Glad to see you in this thread, @FBTMark. I'm here to guide you on how you can record the loan to the company to use for purchasing a property.
Purchasing a property is considered as purchasing a new asset. To record the loan, you'll need to set up a liability account first. Then, create a journal entry to apply the loan to the proper asset account. Here's how:
Setting up a liability account for a loan:
4. Select a Detail type in the drop-down, then select Next.
5. Enter the name of the account.
6. Leave the Unpaid Balance blank, then select Save.
Creating a Journal Entry to apply the loan to the proper asset accounts:
I'd suggest you speak with your accountant for the proper posting of your transactions. You can also read through this help article: How do I record the loan for an asset? It helps you learn about how loans account works in QuickBooks Online.
For future reference, check out this help article: Record a loan and its payment. It will guide you through creating a loan payment if it's time for your business to pay the loan.
Feel free to message us again if you have follow-up questions. You can always count on us here in the Community at any time. Have a great day ahead.
I'm (also) setting up a Director's Loan Account and given some of the comments in this thread I'd just like to double check the best way of doing this please...?
1. Create an Account - Account Type of "Current Assets" (or should it be Non-Current Assets? - assume that wouldn't be correct).
2. Detail Type is "Loans to Officers" (my company is a small Ltd. company).
I could then create a Sub Account relating to the specific Director with the correct balance etc...?
Is that correct and any other tips?
Many thanks in advance.
Is the director lending the business money or is the business lending the director money?