loan fees

Welcome back to the QuickBooks Community, ffoerster. I'll be sharing steps and details to ensure you can record your loans together with the late fees in QuickBooks Online.

I recommend creating a separate expense account in QuickBooks to begin adding your loans with their corresponding late fees. The two accounts will be used to track what you owe as well as the extra amount calculated for them.

Here's how:

1. Go to the Gear icon ⚙ and choose Chart of Accounts.
2. Click New to create a new account.
3. From the Account Type dropdown, select a liability account like Long Term Liabilities.
4. In the Detail Type dropdown list, select Notes Payable.
5. Give the account a relevant name, like "Loan for a car" or "Covid-19 relief loan."
6. Choose when you want to start tracking your finances.
7. Click Save and Close.

Once done, repeat the previous steps and enter loan late fees as the account name. 

After that, you can either write a check or record expenses transactions to record the loan and the late fees.

Additionally, you can consult an accountant to ensure your records are in shipshape. They can provide other suggestions or options on how to properly handle loans with late fees, particularly with the category/account to use when handling them.

Lastly, you may refer to this article to view details on how you can run a particular report that will reflect all payments made to vendors: Run a report with vendor totals.

I’ll be right here to help if you need further assistance with your loan transactions. Just post a comment below, ffoerster. Have a great day and always take care!

@ffoerster 

Late fees are an expense so, when you record the payment in QuickBooks, under 'Category', assign the late fee portion of the payment to the "Bank Charges" expense account or something similar.