for my small business, my Kabbage account is connected directly to my QBO. the payments to my Kabbage loan are deducted from my checking account QBO qualifies them as a 'transfer' once they import in. the money is moved from my checking to pay off my Kabbage balance.
however, Kabbage does not import the 'loan fees' it's applying to my loan. in this case, exactly $300/month is added to my loan balance as part of the repayment plan. therefore, my Kabbage bank account and Kabbage QBO balance do not match.
how can i add these 'loan fees' in to my QBO? as far as i can tell, i cannot adjust the loan payment and put $300 of it towards loan fees bc it is automatically imported from my checking & there's no way (that i can tell) to modify those imports.
thanks so much for any help you can provide.
Good day, melissajanebarnes.
Thanks for posting here!
The easiest way to record the Kabbage loan fees is by creating an expense transaction. Simply go to the + New button and select Expense.
I'll be here if you need anything else. Have a great day!
thank you, Alex!
my follow-up question is that when i try to add the expense, QBO makes me choose a Payment account. but because the payments are auto-drafted from my business checking and the amounts can't be adjusted, what should i put for the Payment account for the expense?
thanks so much, Alex.
my issue is that when i add it as an expense, it requires a Payment account. but since my payments are auto-drafted from my checking account and pulled automatically into my QBO, what should i put as the Payment account here?
Thanks for getting back to this thread, @melissajanebarnes.
I'll be glad to provide you additional assistance in recording the loan fees to reduce your loan balance in QuickBooks Online.
We can use the checking account in the Payment account to record the loan balance. Then, use the Kabbage Loan account in the CATEGORY section of the expense transaction to record the payment.
Also, I recommend reconciling your account from time to time in QuickBooks. This will make sure that your accounts are matched to your real-life bank and credit card statements.
That's should do it. If you have other QuickBooks-related concerns, don't hesitate to visit us back.
unfortunately that won't work. the Kabbage loan fees are simply added to the loan balance - they are drawn specifically from the checking account. so my checking account payments simply chip away at the Kabbage balance, rather than paying a specific loan fee.
so, when i added the loan fee as you suggested, with the checking account in the Payment account, it threw off my checking balance. that fee was never drawn on my checking account. and i know this because i have reconciled all of my accounts, and they are already up-to-date, except my Kabbage account.
is there any type of journal entry i could write to add the additional loan charges to the Kabbage account (increasing the overall balance) without changing my checking account balance?
thank you again.
I'd like to chime in and add some insight about recording your loan fee, @melissajanebarnes.
You'll need to have an expense account to record your loan fees. This way, your Kabbage bank account, and QBO account will match. Let me walk you through the process.
After that, choose this expense account when you create a journal entry to offset your Kabbage account.
It is also recommended to use your loan fees account to record your fees moving forward. Just add it as a new line item when you record your loan payment.
Here's how to do it:
With these steps, you're able to keep track if your loan fees and reconcile your Kabbage account correctly. You can learn more about the loan payment at this link here: Make a loan payment in QuickBooks Online.
We also have a guide on understanding the chart of accounts that I'm sure you'll find helpful. It contains lists and details on every account.
That'll do it. Please know that you're always welcome to come back to this thread if you have other questions. We're here to lend a hand. Thanks for coming in and I wish you have a great week ahead.