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How do I record entries for a loan? I have a long term liability loan set up , how do I record interest payments when doing interest only payments? also record the funds deposited to fund the loan?
Hello there, @Recycler70.
I'd be glad to guide you on how to record entries for loans in QuickBooks Desktop (QBDT).
To begin with, for the interest-only payments, you can write a check posted to the appropriate expense account used for tracking loan interest. But first, you'll have to set up an expense account.
Here's how:
To record the loan amount, deposit it for Cash loans. Here's how:
For the Non-cash loans. You'll have to create an asset account by going to the COA and then creating a new one. After that, select an account type for your non-cash loan either fixed asset, other current asset, or other asset. Then, select Continue to enter the name and number of the account. When you're done, select Save & Close.
After that, you'll have to enter a Journal Entry by going to the Company menu, and then select Make General Journal Entries. Enter the Date and journal entry number. Select the first line and debit the loan asset account. Then, select the second line and credit the liability account. Lastly, Select Save and Close.
Once done, record the loan payments. Here's how:
For more detailed information, you may refer to this article: Manually track loans in QuickBooks Desktop.
I'll also add this article to guide you match your bank and credit card statements: Reconcile an account.
Please don't hesitate to click Reply, if you have further concerns about recording loans or other QBDT-related concerns. I'll be here to further assist you.
thanks for the reply, I have those notes printed. To make sure I'm not confused on this,
so its a Line of credit, i have the loan set up as Long term liability.
when the bank deposits the "principal Advance" into the credit line, how do I record that.
I couldn't do a make deposits because the deposit to was only Asset accounts listed.
Do you mean I would create an Asset account for this loan to deposit into then a journal entry to move from the asset account to that line of credit (long term liability account)
Hi there, Recycler70.
I appreciate you coming back and asking for clarifications regarding with recording of your loan entries in your QuickBooks Desktop (QBDT) account.
The asset accounts are for non-cash loans. Since you're depositing for cash loans, it'll affect the liability account but not the asset accounts. To record your loan, we only have to record the cash loans without going through the asset accounts.
Here's how:
1. Go to the Banking menu, then choose Make Deposits.
2. When the Payments to Deposit window opens, select Cancel.
4. In the Make Deposits window:
a. In the Deposit To field, choose which account to deposit the loan into.
b. Check the Date and enter an optional Memo.
c. In the From Account column, select the Liability account you created in Step 1.
d. In the Amount column, enter the loan amount.
e. Once done, click Save & Close.
For further guidance, I highly recommend scanning this article that entails the steps on recording your loan account entries: Manually track loans in QuickBooks Desktop.
In addition, you can track your loans and be reminded about the upcoming payments with the assistance of QuickBooks Loan Manager.
Let me know if you have additional questions about recording your loans in your QBDT account. Just leave a comment below. I'll be here to assist you at any time. Have a good one!
Would this method work on Quickbooks Online?
Would this method work for QuickBooks online?
Hello Green,
I would be happy to assist you with recording your loan entries in QuickBooks Online (QBO).
As a business owner, you may need to take out a loan to purchase new assets such as vehicles, equipment, machinery, buildings, and other assets required for your business. QuickBooks Online enables you to create a liability account to record the loan and its payments easily. This account will keep track of what you owe.
Here's how to record a loan in QuickBooks Online:
For more information on how to add transactions to account registers in QuickBooks Online, please refer to this article: Manually add transactions to account registers in QuickBooks Online.
You can also track your loans and record them as an asset in QuickBooks Online. For more information, check out this article: Record the loan for an asset in QuickBooks Online.
If you have any further questions about recording your loans in your QuickBooks Online account, please don't hesitate to reach us. Simply leave a comment below, and I'll be happy to assist you at any time. Have a great day!
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