Hello there @kwalker34,
You can create an asset account to track the value and depreciation of your assets. Loan accounts can be an asset account or a long term liability account. However, it's best to work with your accountant to know the best methods used.
To set up a long term liability account:
Once done, record your loan by creating a journal entry. Here's how:
After that, record your loan payment by creating an expense or a check.
These steps will help you keep track of your loan payments. You can learn more about loan payments at these links here:
We also have a guide on payments that I'm sure you'll find helpful. It has additional resources and steps related to QuickBooks payments.
That'll do it. Please don't hesitate to click the reply button anytime if you have questions. We're here to lend a hand. Thanks for joining us today and I wish you have an awesome day ahead.
Sorry, it’s so hard to be specific with the limited characters for the question. We already have the loan all set up we have had it for 3 years it is a SBA loan. With the covid situation the SBA is actually making the payments for us for 6 months so the loan is being reduced just not by us. We need to show that.
Hey there, Kwalker34.
Thanks for following back up with us. While journal entries are used sometimes as a last option for entering transactions, they can be helpful for situations like yours. If you need help with understanding the accounting procedure for this entry you can find an account to help at any time. Once you speak to that account or your own simple create the journal entry by following these steps:
You're journal entry will be put in to your specifications. I'm here as well to assist with any questions you may have. You can reply below at any time to reach me. Have a great day!
You can create a Journal Entry to reduce your loan and increase the balance in SBA loan. Here's how:
However, I suggest reaching out to your accountant to help you verify what accounts that you'll have to use.
You can also refer to these help articles for more information about unpaid bill reports: Accounts Payable Reports.
Post a reply if you need anything else. I'll be here to help.
I have the same issue and need to know how to record the payment that the SBA is making on our behalf. Our libility is going down, but I have no idea which account to record the funds coming from, Should I record it as coming from retained earnings?
"I have the same issue and need to know how to record the payment that the SBA is making on our behalf. Our libility is going down, but I have no idea which account to record the funds coming from, Should I record it as coming from retained earnings?"
Also as Other Income.
There is no such thing in general accounting like coming from Retained Earnings.
Thankful for everyone talking and helping out with this! The auto QB support is ZERO help my goodness.
I was going to use other income as well per my research, but I had two questions about this.
1. Someone on a different thread mentioned whether it was taxable or not, certainly it is not taxable correct?
2. Are you just doing a two line entry to reconcile the loan balance offset to other income and not recording any interest? I don't see why we would need to note that someone else paid interest, but it seems odd to just forget it entirely.
Thanks in advance for help!