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SBA Application Fee

Under what expense account should I record an SBA Loan Aplicaron Fee  or should I register it as part of the Loan?  Meaning entering the payment under/to the same Loan Payable.

 

Thanks in advance.

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Best answer May 28, 2020

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QuickBooks Team

SBA Application Fee

Thank you for posting here in the Community, @edith1006.

 

If the fee is not included in the loan you received. You'll have to create a separate expense using an expense account.

Here's how to set up an Expense Account, to track loan payments or fees:

  1. Go to the Lists tab, then choose Chart of Accounts.
  2. Right-click anywhere, then select New.
  3. Click Expense, then Continue.
  4. Enter the account name for the interest payments or fees.
  5. Tick Save & Close.

However, if this is included in the Loan, it means that the fee will be deducted on the money you receive. You'll need to deposit the loan amount. Add a line item, select Expense account, and use a negative value. 

 

Should be like this: 
Loan: 1000
Fee: -50
Total Loan received: 950

 

Here's how:

  1. Go to the Banking menu, then click Make Deposits.
  2. If the Payments to Deposit window opens, select Cancel.
  3. From the Deposit to field, select which account the amount will be deposited.
  4. Fill out the necessary information.
  5. Under the From Account column, choose the Liability account for the loan. Then enter the amount in a positive number.
  6. Add line item and pick the expense account you've set up for the loan fee. Then enter the amount in a negative number. 
  7. Once done, hit Save & Close

For more information about tracking loans in QuickBooks, check out this article: Manually track loans in QuickBooks Desktop. This article will also provide you detailed steps to set up a Liability Account for the loan. 

 

Additionally, QuickBooks Desktop has a feature which can help you track your loan. This is what we call QuickBooks Loan Manager. This will helps you calculate interest and payment schedules. By this, you'll be able to track your new and existing loans, make repayments, and run different “what-if” scenarios to compare different loan options.

 

Fill me in if you need anything else. I'll be around to help you. Stay safe and take care always, edith1006. 

View solution in original post

1 Comment
Highlighted
QuickBooks Team

SBA Application Fee

Thank you for posting here in the Community, @edith1006.

 

If the fee is not included in the loan you received. You'll have to create a separate expense using an expense account.

Here's how to set up an Expense Account, to track loan payments or fees:

  1. Go to the Lists tab, then choose Chart of Accounts.
  2. Right-click anywhere, then select New.
  3. Click Expense, then Continue.
  4. Enter the account name for the interest payments or fees.
  5. Tick Save & Close.

However, if this is included in the Loan, it means that the fee will be deducted on the money you receive. You'll need to deposit the loan amount. Add a line item, select Expense account, and use a negative value. 

 

Should be like this: 
Loan: 1000
Fee: -50
Total Loan received: 950

 

Here's how:

  1. Go to the Banking menu, then click Make Deposits.
  2. If the Payments to Deposit window opens, select Cancel.
  3. From the Deposit to field, select which account the amount will be deposited.
  4. Fill out the necessary information.
  5. Under the From Account column, choose the Liability account for the loan. Then enter the amount in a positive number.
  6. Add line item and pick the expense account you've set up for the loan fee. Then enter the amount in a negative number. 
  7. Once done, hit Save & Close

For more information about tracking loans in QuickBooks, check out this article: Manually track loans in QuickBooks Desktop. This article will also provide you detailed steps to set up a Liability Account for the loan. 

 

Additionally, QuickBooks Desktop has a feature which can help you track your loan. This is what we call QuickBooks Loan Manager. This will helps you calculate interest and payment schedules. By this, you'll be able to track your new and existing loans, make repayments, and run different “what-if” scenarios to compare different loan options.

 

Fill me in if you need anything else. I'll be around to help you. Stay safe and take care always, edith1006. 

View solution in original post

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