How to Set up a owner financed mortgage and post collected payments?

Hello there, SCPSAL. I'm here to walk you through setting up a mortgage and tracking your collected payments in QuickBooks Desktop (QBDT).

It's crucial to have everything configured correctly to monitor the mortgage's principal, interest, and escrow payments within the program.

Let's begin by issuing a multi-purpose loan to your customer. Here's how:

1. Select the Accountant menu, then choose Chart of Accounts.
2. Click on the Account dropdown button, then New.
3. Add an Asset account. Hit Continue.
4. On the Account name field, enter "Loan - customer name".
5. Click Save & Close without entering an opening balance.

Once done, create a check for the loan. Follow the steps:

1. Select Banking, then Write Checks.
2. Choose the bank account in question.
3. In the Expenses tab, select the account you created.
4. Enter the loan amount in the Amount field.
5. Hit Save & Close.

Here's how to record the customer payments:

1. Select Banking, then Make Deposits.
2. Choose the bank account.
3. From the Received From dropdown button, select the customer's name.
4. Select the account you created to track loans from the Account dropdown.
5. If you charge customers with interest, select the account you use to track interest income. Enter the interest amount on the second line.

I also recommend consulting your accountant to ensure an accurate record of accounts. If you don't have one, find a professional through this page: QuickBooks Certified ProAdvisor.

Additionally, you can run reports to monitor your mortgages and the financial status of your business. Check out these resources for your guidance:

• Understand Reports
• Customize reports in QuickBooks Desktop
• Create, access, and modify memorized reports

Insert a comment below if you have more questions about managing mortgages or need help with doing your QuickBooks tasks. Just hit the Reply button, and I'll be right here to assist you.