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I'm trying to set up a car loan in QuickBooks. I already set up the long term liabilities account and entered the loan amount. Do I have to set up a fixed asset account also?
If I have to set up a fixed asset account, which account do I apply the monthly car payments to?
It’s our pleasure to help, krucki.
Yes, you can create a fixed asset account where the equipment will be posted. Fixed Assets are the purchased items for long-term use.
Here's how to create an account:
For additional information, you can refer to this article:
You can also check with your accountant for guidance. This way, we ensure the accuracy of your books after recording this.
Please click this article on how to set up a particular account to manually track depreciation using journal entries: Depreciate assets in QuickBooks Online.
You can always get back to us if ever you have other questions or concerns in the future.
So if i have a loan account and a fixed asset loan, which account am I applying the payments to? also, how do I get the other balance down ?
Welcome back to this thread, krucki.
You'll be applying the payments to a loan account. Learn more about this by visiting this article: Set up a loan in QuickBooks Online.
To get the balance down, you might need to create a Journal Entry for that. Before doing so, I recommend consulting your accountant to help you in choosing the right accounts to debit and credit.
In case you want to review the entries made, you can pull up or print a report for Journal Entries.
To do that:
Be sure to get back to me if you have additional questions. It would be my pleasure to help. Have a good one!