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Level 1

Removing long term liability balance

I took a 7 year SBA loan to buy out my business partner, but after 2 years i was able to pay it off.

The payoff was $38,745.33 less than total owed. I now show under long-term liabilities this $38,745.33, so how can i clear it/remove it?

1 Comment
QuickBooks Team

Removing long term liability balance

Thank you for adding a post, @Globalfelix.

 

I got the steps on how to remove the liability balance from your record. I'm happy to share them with you.

 

First, you need to take note of the account used in recording the liability amount. From there, record an expense or check transaction with the same figures, and select the long term liability account.

 

Here's how:

 

  1. Open your QuickBooks Online (QBO) account, then select Expense or Check from the (+New icon.
  2. From the Expense or Check window, input the necessary details, and select the liability account under the Category column.
  3. Enter the amount.
  4. Once done, click on the Save and Close button.

For additional guide while entering checks and expenses in QBO, you can open these articles:

 

You can as well open this link for more tips about tracking loans in QBO.

 

Please post again if you have any other QuickBooks questions. I'm always here to help. Have a good day!

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