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I have a loan to officers that I want to pay back. How do I record that in QB.

record a loan to officers as paid.
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QuickBooks Team

I have a loan to officers that I want to pay back. How do I record that in QB.

I've got the steps on how to record a loan to officers as paid, @ojokatch.

 

First, you'll set up the liability account for the loan. Second, create a journal entry to record the loan, and then lastly is to record all payments for the loan by check.

 

Setting the Account Type will depend on the repayment time frame. It can be Other Current Liabilities (to be paid full in one year) or Long Term Liabilities (to repaid over a year).

 

Here's how to set up the loan account:

  1. Select Settings ⚙️.
  2. Select Chart of Accounts.
  3. Select New.
  4. 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.
  5. In the Detail Type drop-down list, select either Other Current Liabilities or Long Term Liabilities.
  6. Enter a Name for the account.
  7. For example, Loan from Officer/Owner.
  8. Leave the Unpaid Balance field blank.
  9. Select Save and close.

 

Then create a journal entry.

  1. Click + New.
  2. Under Other, select Journal Entry.
  3. Enter the amount of the loan and record the proper amounts to the right expense accounts.
  4. Select Save and close.

 

Lastly, recording the payment.

  1. Select + New.
  2. Under Vendors, select Check.
  3. From the Account drop-down list, select the liability account you created for this loan.
  4. Enter the Amount of the payment.
  5. Select Save and close.

 

You can reference this article for the steps that I've shared above: How to record a company loan from an officer or owner.

 

Then you can run financial reports to have an overview and customize it to focus on some specifics like your sales and expenses made. Also, I'd encourage you to seek for accountant's professional advice if you need help on assigning accounts in creating a journal entry.

 

Please let me know if you have other questions in record-keeping. I'm always here to lend you a hand. Take care!

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