We can easily record the line of credit and its payment in QuickBooks Online, bigdaddyssalsaco. We just need to follow the process that I'll lay out below.
To better manage your cash flow, tracking liabilities and expenses is a must. This will allow you to have a better understanding of your business data. Here's the process to do it:
- Set up a liability account for the principle.
- Set up an expense account for the interest.
- Track your line of credit through bill, expense, check or transfer.
- Pay the bank with a paper check or debit/credit card.
The details of every steps are expounded in this article: Manage a line of credit in QuickBooks Online.
When paying the line of credit, I'll share the steps in writing a check:
- Click the + New button in the upper-left corner, and select Check.
- Enter the Payee and the Bank account you want to use to pay the line of credit.
- In the Category details, enter the expense and liability accounts for the line of credit.
- Specify the amounts and click Save.
Though we have this process in QuickBooks Online, it is still best to reach out your accountant. They can recommend steps that will suit your business setup.
Are you looking for ways to take your QuickBooks experience to the next level? I'm excited to share that you can connect with our QuickBooks Live Expert Assisted team. They are here to help you track and record your transactions to manage your finances effectively. Let us support you on your journey to financial success.
In addition, we can utilize Online Banking for fast tracking if your bank is connected to QuickBooks Online. You can use this link for reference: Record a QuickBooks Line of Credit loan in QuickBooks Online.
We got you if you have additional queries in recording your line of credit and payments. Have a great day!
