How do I set up a company loan to a company officer?

Good afternoon, @hhaynes_33.

Nice to have you here in the Community. I've got you covered. Setting up loans in QuickBooks Online is my specialty.

Before you begin, I recommend setting up the loan in QuickBooks to make the process much easier. After doing so, you can create an expense to record the payment. The steps are listed below:

1. Go to the (+) New icon and press Expense.
2. Choose the business or person you received the loan from in the Payee field.
3. In the Payment Account drop-down, pick the bank account for the payments.
4. Enter the Payment Date and select the Payment Method from the drop-down.
5. (optional) You can use the reference number field to enter any identifying number from the payment receipt.

That's all there is to it! You can also check out this article on making loan payments if you need more information.

I'm only a post away if you have any other questions. Have a great day!

The heading sounded right but this wasn't exactly what I was looking for. But maybe you can help.

I want to loan myself money from my corporation in qiuickbooks and pay it back in full when funds are available without any taxation.

So, I would like to know "how to set  up a loan from the corporation to a company officer".

Short term if it matters.

Thank You

Thanks for joining the thread, @hiline1. I’ll help you with this concern on how to set up a loan from the corporation to a company officer in QuickBooks Online.

To ensure your loans are accurate, you'll need to create a liability account. Depending on the repayment interval, the Account Type can be either Other Current Liabilities (to be paid in full in one year) or Long Term Liabilities (to be repaid over more than one year).

Here’s how:

1. Click the Gear icon and choose Chart of Accounts.
2. Select New.
3. In the Account dialog, select either Other Current Liabilities or Long Term Liabilities from the Account Type drop-down list, depending on the type of loan and its repayment time frame.
4. From the Detail Type drop-down list, select either Other Current Liabilities or Long Term Liabilities.
5. Enter a Name for the account. For example, Loan from Officer/Owner.
6. Leave the Unpaid Balance field blank.
7. Hit Save and close.
   
   

 
Here's an article you can refer to for more details on How to record a company loan from a company officer or owner.

Also, I recommend seeking help from your accountant for the best possible advice on this process.

You might also want to visit our help page to browse articles that can guide you with your QBO tasks. To get started head to our QBO help articles at this link.

Additionally, I'll share with you this article if in case you’ll want to get a loan to buy new assets in the future.

You can always reply or reach out to us again if you need anything else with QBO. We're always here to guide and assist whenever you need help. Have a good one!

Thank You Carneil but this doesn't seem to be right. So funny, I've typed this in the search engine 5 or 6 different ways to be more clear but the results keep coming up for the opposite of what I'm trying to do. As did your link in your response " How to record a Company loan from a company officer,..."

To be clear, this is a Company loan TO a company officer. So it doesn't seem like it should be recorded in the Company as a liability of any kind. It's not a Company liability.

Am I missing something?

Thank You again for your response.

@hhaynes_33  I guess these people are too excited for the weekend

@hiline1 Create an other current asset account. Don't enter a balance like what the articles say because that would be insane. It's like giving a loan without knowing where it was from

Create a check or expense for the officer, which should be added as a vendor. Use the other current asset account and enter the loan amount. The payment account of this check is your business bank account where the money was taken from.

Enter the loan repayments as bank deposits and use the other current account. This will lower down or zero out the asset account after full payment. 

I have the same issue i'm trying to figure out. mainly cos it's a small business and cash flow isn't always free-flowing haha. anyway can you explain a bit more detail of how to "pay it back"? thanks!!

Yes, I'd be glad to share how to track the loan repayment, ByrigCorporation.

When you're ready to pay it back, we can record it as a check in QuickBooks Online. Please follow these steps for the detailed guide:

1. Go to + New and then select Check. Make sure you have the Accountant view.
2. Add a check number if you plan to send an actual check. If you use direct withdrawal or an EFT, enter Debit or EFT in the Check no. field.
3. In the Category details section of the check, please add the info below:

• On the first line, click the liability account for the loan from the Category dropdown. Then, enter the amount.
• On the second line, select the expense account for the interest. Then, add the amount.
• On additional lines, add any additional fees. Select the appropriate accounts from the Category dropdown. Once done, click Save and close.

However, if you haven't tracked the loan in the program. I recommend creating a liability account. Here’s how.

1. Go to Settings ⚙, then select Chart of accounts (Take me there).
2. Select New to create a new account.
3. From the Account Type ▼ dropdown, select Long Term Liabilities. Note: If you plan to pay off the loan by the end of the current fiscal year, select Other Current Liabilities instead.
4. From the Detail Type ▼ dropdown ▼ dropdown, select Notes Payable.
5. Give the account a relevant name, like "Loan for a car" or "Covid-19 relief loan."
6. Choose when you want to start tracking your finances. In the Balance field, enter the amount in the account, and determine the as of date. Enter today's date if you want to start tracking immediately.
7. Select Save and Close.

If you put all the loan money right into the bank, follow these steps if you:

1. Select + New.
2. Select Journal entry.
3. On the first line, select the liability account you just created from the Account dropdown. Enter the loan amount in the Credits column.
4. On the second line, select your bank account from the Account dropdown. Enter the same loan amount in the Debits column.
5. When you're done, select Save and close.

Otherwise, you can reach out to your accountant. They know how to handle the next steps. 

You can always reply or reach out to us again if you need anything else with QBO. We're always here to guide and assist whenever you need help.