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valleyautotruck
Level 1

Setting up bank loan in banking?

 
2 Comments 2
IamjuViel
QuickBooks Team

Setting up bank loan in banking?

Hello, @valleyautotruck.

 

Let me share some information on how you can track your loan in QuickBooks.

 

The ability to connect your bank loan type of account with QuickBooks depends on your financial institution or loan provider. Here's how you can connect your bank in the Banking page:

  1. Go to the Banking menu.
  2. Select the Add account.
  3. Paste your bank's URL in the Enter your bank name or URL search box.
  4. Hit the Enter key.
  5. Enter your User ID and Password for the financial institution website.
  6. Click Continue.
  7. Follow the onscreen instructions.
  8. Select Connect.

If your loan provider does not support integration with QuickBooks, you can manually track the loan transaction and its details. You'd want to create a liability account first. This will be used to record your loan. Here's how:

  1. Go to the Gear icon.
  2. Select Chart of Accounts.
  3. Click the New button.
  4. In the Account Type drop-down list, select Long Term Liabilities.
    • Take note that if you plan to pay off the loan by the end of the current fiscal year, select Other Current Liability
    • Otherwise, select Long Term Liabilities.
  5. From the Detail Type drop-down, select Notes Payable.
  6. Give the account a relevant name.
  7. Enter the full loan amount as a negative amount in the Amount field.
    • Since the future payments to the bank are a liability for your business, the amount should be negative.
  8. Click the Save and Close button.

Now, you can now record the money you got from the loan. You can follow these steps:

  1. Select the Plus icon.
  2. Choose Journal Entry.
  3. On the first line, pick the liability account you've created.
  4. Enter the loan amount in the Credits column.
  5. On the second line, select the appropriate asset account from the Account dropdown.
  6. Then enter the same loan amount in the Debits column.

Once you're ready to pay your loan, you can do so by creating a check or expense transaction. You can read through this article for the detailed steps to finish the process: Set up a loan in QuickBooks Online.

 

On the other hand, you can read through these articles to help you manage your bank accounts and transactions in QuickBooks:

Keep me posted if you have other questions about tracking your business transactions in QuickBooks. I'm always here to help.

IamjuViel
QuickBooks Team

Setting up bank loan in banking?

Just dropping by to make sure everything works fine, @valleyautotruck.

 

Have you tried the steps I've shared above? Were you able to connect and track your loan-related transactions?

 

Keep us posted here if you have other questions or concerns. I'm always here to lend a hand.

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