Hard Money Lending

Good afternoon, @schlossy. 

Congrats on making your first post here in the Community. Allow me to give you some information to help you out. 

With loans, typically this is the best guide to go off of when tracking them and setting them up: Manually track loans in QuickBooks Desktop. All you need to do is follow the steps on this article to get you squared away.

I also recommend consulting with your accountant if you're having additional trouble with this. 

Please don't hesitate to contact us if you have any other concerns. I'm always here to lend a helping hand. Take care! 

Thank you for responding Candice. The instructions you gave me are for a liability. Is it the same for an asset?

Thanks

Cari

It would be similar except 100% opposite, and you cannot utilize the Loan Manager function amortization schedule on a loan asset.

Here in a nutshell is how I handle loaned money. 

Set up the loan as an asset

Use Sales Receipt OR Invoice to bill Customer. Enter both principal (tied to the specific loan) and interest income. Use a third party amortization tool to print off the schedule and use that on a regular basis to adjust the amounts entered in the Sales Receipt or Invoice