It’s a pleasure to have you here in the Community, Shalom.
Let me walk you through the steps of recording the SBA loan payment from the government and keeping track of it.
First off, let’s set up a liability account to record the loan in QuickBooks. I’ll guide you on how:
- Go to the Lists menu and select Chart of Accounts (COA).
- Expand the COA window. Then, click the dropdown arrow beside Account and select New.
- From the account section, tap the Other Account Type and select either from the liabilities account; Other Current Liability, or Long Term Liability.
- Click Continue to proceed and enter the Account Name to its designated section.
- Then, click Save & Close.
After creating the liability account, we can set up a vendor for the bank or company you need to pay for the loan:
- Go to the Vendors menu and select Vendor Center.
- Select New Vendor and enter the name of the bank or company you need to pay for the loan.
- Enter the other details needed and select OK.
Then, let’s proceed with creating the expense account. This account will be used to track interest payments or other fees. Here’s how:
- Go to the Lists menu and select Chart of Accounts (COA).
- Expand the COA window. Then, click the dropdown arrow beside Account and select New.
- From the account section, tap the Expense account and Continue.
- Enter the Account Name to identify easily. Then, click Save & Close.
Afterward, you can start recording the loan amount and post this to the liability account you have created recently. Then proceed to record the loan payments. To do so, please refer to Step 4: Record the loan amount. Then, Step 4: Record loan payments in this article: Manually track loans in QuickBooks Desktop.
Moreover, I’d still recommend consulting your Professional Advisor. This way, you will be guided properly with entering the transactions to prevent messing up your books.
Feel free to tag me if you have more concerns about recording the SBA loan. I’ve always got your back. Have a great day!
