Record EIDL loan payoff from an account not in Quickbooks?

MusicCityTiger · ‎August 19, 2022

So I probably did something stupid, and don't know how to account for it now. I received and EIDL loan, in 2020, recorded it in Quickbooks (desktop) as a Long Term Liability, per all the instructions on here at that time. Now here is the issue: I moved all the money to my personal savings account (NOT in QB account list) so that it would draw interest in between paying bills & expenses, etc.. I paid it back in 2022 as a lumpsum, with an ACH transfer from the savings account directly to the SBA. Now I don't now how to "zero" out the loan in QB (without screwing up my books & bank register) since the account I paid it back from is not in Quickbooks. Any ideas how to handle this?

VaTT · ‎September 14, 2022

Did you remove the money from QuickBooks when you took it IRL to your personal account? I would think you did not, and you would just "pay" to the loan from the account where the money was sitting in QuickBooks. If you did withdraw money from account in QuickBooks, just redeposit into that account and "Pay Bill" from that account. QuickBooks doesn't know where the money came from IRL...

Rainflurry · ‎September 14, 2022

@MusicCityTiger

Assuming you recorded the withdrawal in QB: when you moved the money to your personal account, did you record it as an owner's draw/distribution or as a note receivable or ??? Whatever account you used, you will want to create a journal entry and debit the EIDL long-term liability and credit the account used when you withdrew the money to your personal checking account. This will zero out the EIDL loan and reduce the asset/increase the equity account you used when you withdrew the funds.

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Record EIDL loan payoff from an account not in Quickbooks?

Record EIDL loan payoff from an account not in Quickbooks?

Record EIDL loan payoff from an account not in Quickbooks?

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