Trying to set up a loan that is currently in the business checking account. Does the Account Balance field ask for the checking account Or the loan amount?

How can a loan be in the checking account?

Typically you set up a liability account, then make an entry as an increase to the liability account and in the account block you select the account the money was deposited to

Hi, thank you for your response.

The loan money was received directly in the business checking account. Now, I am trying to record it correctly on Quickbooks since it is showing up as income in the balance sheet.

Hi, thank you for your response.

The loan money was received directly in the business checking account. It is showing as income in the Quickbooks balance sheet. I want to record it correctly on Quickbooks as a loan.

Hello, @addisg.

I'm here to help record your loan transaction accordingly.

The loan amount must be entered as a deposit to your business checking using the liability account. If it was recorded incorrectly, you can delete the transaction, then follow these steps:

1. Open your QuickBooks Online account, then select Bank Deposit from the New icon.
2. Select your checking account from the Account section, then scroll down to the Add funds to this deposit section.
3. Fill the necessary information and select the loan or liability account under the Account column.
4. Enter the amount, then tap on the Save and close button.

When opening the Balance Sheet report, the amount will show as a liability or payable.

This article also shares the steps on how to set up a loan in QuickBooks, you can also refer the instructions in here for other options.

As always, feel free to read the topics from this link for additional reference about running and customizing reports in QBO.

Leave a comment below if you have any other questions. I'm a few clicks away to help you. Have a good day!