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Experienced Member

How to record Payday cash loans in QBO

How do I set up 4 different payday loans correctly in qbo?  I started seeing both deposits and withdrawls coming out of my clients bank account.  I know by the vendor name that these are payday type loans.  I don't have any other info, such as interest, etc other than what comes through the bank account.  I have attached the activity and if someone could tell me how to handle?

Solved
Best answer 05-10-2019

Accepted Solutions
QuickBooks Team

Re: How to record Payday cash loans in QBO

It's nice to have you here, @cherryblossom12,

 

It's my pleasure to help you record your payday cash loans in QBO correctly.

 

To get started with tracking your loans, you must first create a loan account. Here's how:

 

  1. Go to the Gear icon.
  2. Select Chart of Accounts.
  3. Tap New.
  4. Set the Account Type depending on the type of your loan. Use Other Current Liability if the loan will be paid within the current fiscal year. Use Long Term Liability (or non-current liabilities) if the loan will be paid after the current fiscal year.
  5. Update the Detail Type to Loan Payable.
  6. Key in the account name.
  7. Hit Save and close.

Once you have the account, you can now start entering the opening balance of the loan. Follow the steps below:

 

  1. Click the Plus icon (+).
  2. Choose Bank Deposit.
  3. Select the correct bank account where the loan funds will be deposited.
  4. Change the deposit date.
  5. From the Account column, enter the loan payable account you created earlier.
  6. Add the loan amount.
  7. Press Save and close.

To record a loan payment, check out these steps:

 

  1. Tap the Plus icon (+).
  2. Click on Check.
  3. (Optional) Enter a check number if you send an actual check. If you're using direct withdrawal of EFT, type in Debit or EF in the Check/Check # field.
  4. Enter the following information in the Account details section.
    • First line: Liability account for the loan and the amount of payment
    • Second Line: Expense account for the interest and the amount
    • Succeeding lines: Any additional fees along with the appropriate accounts.
  5. Press Save and close.

If you're unsure to which vendor these amounts came from, you can contact your financial institution or directly check your vendors. Here's a great article to guide you with the process: Record a loan and its payment

 

That should get your work done. Please let me know if you have any questions with the steps. I'm just a post away. Have a good one!

3 Comments
QuickBooks Team

Re: How to record Payday cash loans in QBO

It's nice to have you here, @cherryblossom12,

 

It's my pleasure to help you record your payday cash loans in QBO correctly.

 

To get started with tracking your loans, you must first create a loan account. Here's how:

 

  1. Go to the Gear icon.
  2. Select Chart of Accounts.
  3. Tap New.
  4. Set the Account Type depending on the type of your loan. Use Other Current Liability if the loan will be paid within the current fiscal year. Use Long Term Liability (or non-current liabilities) if the loan will be paid after the current fiscal year.
  5. Update the Detail Type to Loan Payable.
  6. Key in the account name.
  7. Hit Save and close.

Once you have the account, you can now start entering the opening balance of the loan. Follow the steps below:

 

  1. Click the Plus icon (+).
  2. Choose Bank Deposit.
  3. Select the correct bank account where the loan funds will be deposited.
  4. Change the deposit date.
  5. From the Account column, enter the loan payable account you created earlier.
  6. Add the loan amount.
  7. Press Save and close.

To record a loan payment, check out these steps:

 

  1. Tap the Plus icon (+).
  2. Click on Check.
  3. (Optional) Enter a check number if you send an actual check. If you're using direct withdrawal of EFT, type in Debit or EF in the Check/Check # field.
  4. Enter the following information in the Account details section.
    • First line: Liability account for the loan and the amount of payment
    • Second Line: Expense account for the interest and the amount
    • Succeeding lines: Any additional fees along with the appropriate accounts.
  5. Press Save and close.

If you're unsure to which vendor these amounts came from, you can contact your financial institution or directly check your vendors. Here's a great article to guide you with the process: Record a loan and its payment

 

That should get your work done. Please let me know if you have any questions with the steps. I'm just a post away. Have a good one!

Experienced Member

Re: How to record Payday cash loans in QBO

Thank you Thank you Thank you!!!  I've got it now! 5 star help!

QuickBooks Team

Re: How to record Payday cash loans in QBO

It's great to hear back from you, @cherryblossom12,

 

I'm very pleased to know you're back on track. Congratulations on completing your task!

 

I also appreciate the time you've given sharing the solution that worked for you. Allow me to take a quick moment to let you know about a QuickBooks blog for QuickBooks Online users where you can find the latest news and advice to help you grow your business. You can access this resource by clicking this link: The QuickBooks Blog

 

Please know that the Community always got your back and I'll be more than happy to help. Have a great weekend!