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Hi QB community! I hope you're all doing great!
I'm still fairly new to QB but as days go by and I get more help from this community I learn more and more!
This time come with what should be relatively easy and straight forward process for any seasoned accountant. I need to learn how to register a payment on a loan in QB. Previous payments have only been interest and that I can register without any problems. But this month my employer started paying principal and interest. The loan is from an entity called SBA. The payment was for $5,000, ($4530 was for principal and $470 was for interest). In Expenses section of QB I have vendor SBA and so far it only has interest registered there. I would like to find a previous payment from another funder that I can use as guidance. I would highly appreciate hints for this. Also, where in QB should I find the Accounts Payable for SBA? This should reflect the total amount of the loan that I'm going to be applying payment to? Also, should I continue to record interest expenses under the Expense section under the vendor's account (SBA)?
Your guidance is VERY much appreciated! Thanks in advance!
Solved! Go to Solution.
Thanks for taking the time to post your concern here in the Community, rigojr. I can help you register a loan payment using QuickBooks Online (QBO).
Before doing so, I recommend consulting an accountant as they can provide expert guidance on your situation. If you're not affiliated with one, you can visit this link: Find an Accountant.
To register a payment on a loan that includes both principal and interest, we need to set up a Loan Account first. Follow the steps below:
Then, record your loan by creating a journal entry. Here's how:
Once done, let's record your loan payment by creating an expense or a cheque:
Then enter the following in the Category details section of the cheque:
For more details about the process, check out this link: Set up a loan in QuickBooks Online
To ensure the loan balance is updated correctly, run a Balance Sheet report. If you need to find a previous payment from another funder for guidance, you can look at past transactions in the Expenses section or run a Transaction Detail by Account report. You can generate this one by going to the Reports section. See the screenshot below for your visual reference.
Regarding the Accounts Payable for SBA, this reflects the amounts you owe to vendors for goods and services received. For loans, you should track the total amount owed in the liability account you created (SBA Loan).
For recording interest expenses, it's best to consult with your accountant regarding the best course of action.
Moreover, you may visit this article to learn how to manage your expenses in QBO by recording them: Enter and manage expenses in QuickBooks Online.
Please let us know if you have additional QuickBooks-related concerns. We'll be more than willing to assist.
Thanks for taking the time to post your concern here in the Community, rigojr. I can help you register a loan payment using QuickBooks Online (QBO).
Before doing so, I recommend consulting an accountant as they can provide expert guidance on your situation. If you're not affiliated with one, you can visit this link: Find an Accountant.
To register a payment on a loan that includes both principal and interest, we need to set up a Loan Account first. Follow the steps below:
Then, record your loan by creating a journal entry. Here's how:
Once done, let's record your loan payment by creating an expense or a cheque:
Then enter the following in the Category details section of the cheque:
For more details about the process, check out this link: Set up a loan in QuickBooks Online
To ensure the loan balance is updated correctly, run a Balance Sheet report. If you need to find a previous payment from another funder for guidance, you can look at past transactions in the Expenses section or run a Transaction Detail by Account report. You can generate this one by going to the Reports section. See the screenshot below for your visual reference.
Regarding the Accounts Payable for SBA, this reflects the amounts you owe to vendors for goods and services received. For loans, you should track the total amount owed in the liability account you created (SBA Loan).
For recording interest expenses, it's best to consult with your accountant regarding the best course of action.
Moreover, you may visit this article to learn how to manage your expenses in QBO by recording them: Enter and manage expenses in QuickBooks Online.
Please let us know if you have additional QuickBooks-related concerns. We'll be more than willing to assist.
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