Manually track loans in QuickBooks Desktop

Learn how to set up accounts for your loans, and manually track them in QuickBooks Desktop for Windows and Mac.

Cash and non-cash asset loans such as vehicles and office equipment are liabilities for your company. QuickBooks lets you track the loan amount and record your payments so you can keep your payments updated and never miss one. Here’s how.

Note: You can also keep track of your loans and get reminders about upcoming payments with the QuickBooks Loan Manager.

QuickBooks Desktop for Windows

Start tracking your loans in QuickBooks Desktop for Windows.

Step 1: Set up a liability account

Set up a liability account for your loan. You’ll need this when you record your loan amount and payments.

1. Go to the Lists menu, then select Chart of Accounts or press Ctrl + A on your keyboard.
2. Select the Account ▼ dropdown, then select New or press Ctrl + N on your keyboard.
3. Select Other Account Types, then select the account type for your loan:
   • Select Other Current Liability for loans that are payable within a year.
   • Select Long Term Liability for loans that are payable over more than a year.
4. Select Continue.
5. Fill out the Number and Account Name fields.
   Notes:
   • You can select the Subaccount of checkbox if you want to link the account to an existing one.
   • You can fill out the fields in the OPTIONAL section if you want to add more info for easier tracking.
6. Select Save & Close.

Step 2: Set up a vendor

Create a vendor for the bank or lending company you need to pay for the loan.

1. Go to the Vendors menu, then select Vendor Center.
2. Select the New Vendor ▼ dropdown, then select New Vendor.
3. In the VENDOR NAME field, enter the name of the bank or lending company you need to pay for the loan.
   Notes:
   • You can enter an opening balance for easier tracking.
   • You can enter other vendor details when you select Address Info, Payment Settings, and other tabs on the left menu.
4. Select OK.

Step 3: Set up an expense account

Create an expense account so you can track interest payments or fees and charges associated with the loan.

1. Go to the Lists menu, then select Chart of Accounts or press Ctrl + A on your keyboard.
2. Select the Account ▼ dropdown, then select New or press Ctrl + N on your keyboard.
3. Select Expense, then select Continue.
4. Fill out the Number and Account Name fields.
   Notes:
   • You can select the Subaccount of checkbox if you want to link the account to an existing one.
   • You can fill out the fields in the OPTIONAL section if you want to add more info for easier tracking.
5. Select Save & Close.

Step 4: Record the loan amount

Record the loan amount and link it to the liability account you created in Step 1.

Step 5: Record loan payments

Follow these steps to record your loan payments.

1. Go to the Banking menu, then select Write Checks or press Ctrl + W on your keyboard.
2. From the BANK ACCOUNT ▼ dropdown, select the bank account you want to use to pay the loan.
3. Verify the details in the NO. and DATE fields. You can edit them as needed.
4. In the PAY TO THE ORDER OF ▼ dropdown, select the vendor you created in Step 2.
5. In the $ field, enter the payment for the principal amount.
   Note: This automatically fills out the AMOUNT field in the Expenses tab.
6. In the Expenses tab, select the first line, then select the ACCOUNT field.
7. Enter the name of the liability account you created in Step 1.
   Note: You can also use the ▼ dropdown and select it from there.
8. Select the second line. In the ACCOUNT field, enter the name of  the expense account you created in Step 3.
9. Enter the payment amount for the loan interest.
   Note: If you want QuickBooks to record payments at regular intervals for this loan, follow these steps:
   1. Select Memorize .
   2. In the Memorize Transaction window, set your preferences.
   3. Select OK.
10. Select Save & Close.

QuickBooks Desktop for Mac

Start tracking your loans in QuickBooks Desktop for Mac.

Step 1: Set up a liability account

Create a liability account for your loan. You’ll need this later.

1. Go to the Lists menu, then select Chart of Accounts.
2. Select + to add a new account.
3. In the Type field, select the account type for your loan:
   • Select Other Current Liability for loans that are payable within a year.
   • Select Long Term Liability for loans that are payable over more than a year.
4. Enter the name and number for the account.
5. Leave the opening balance at zero.
6. Select OK.

Step 2: Set up a vendor

Create a vendor for the bank or lending company you need to pay for the loan.

1. Go to the Vendors menu, then select Vendor Center.
2. Select +, then select New Vendor.
3. Enter the name of the bank or lending company you need to pay for the loan.
   Note: You can enter other vendor details such as their phone number and email address.
4. Select OK.

Step 3: Record the loan amount

Record the loan amount and link it to the liability account you created in Step 1.

Step 4: Record loan payments

Follow these steps to record your loan payments.

Notes:

• QuickBooks records payments for the principal amount as a deduction to the liability account.
• Once you complete all the payments, the liability account turns zero.
• QuickBooks records interest payments as company expenses.

1. Go to the Banking menu, then select Write Checks.
2. Select the bank account you want to use to pay the loan.
3. Verify the details in the No. and Date fields. You can edit them as needed.
4. In the Pay to the Order of field, select the vendor you created in Step 2.
5. In the Expenses tab, select the first line, then select the Account field.
6. Use the dropdown to find and select the liability account you created in Step 1.
7. In the Amount field, enter the payment for the principal amount.
8. Select the second line, then select the interest expense account.
9. In the Amount field, enter the payment amount for the loan interest.
   Note: If you want QuickBooks to record payments at regular intervals for this loan, follow these steps:
   1. Select Edit, then select Memorize Check.
   2. Select OK.
10. Select Save & Close.