How to record a long term loan from a family member for my business?

Hi there, @pandayeah2017.

I appreciate you reaching out to us. I can help you record a long term loan in QuickBooks for Mac.

1. You have to set up a liability account:

1. Click Lists.
2. Choose Chart of Accounts.
3. Click the Plus (+) icon to add a new account.
4. Select the account type.
   • Other Current Liability: for short-term loans payable over one year.
   • Long Term Liability: for long-term loans payable over a longer period.
5. Enter a name and number for the account.
6. Leave the opening balance at zero.
7. Click OK.

2. Set up a vendor as the loan company:

1. Click Vendors.
2. Choose Vendor Center.
3. Click the Plus (+) icon and choose New Vendor.
4. Enter the necessary information.
5. Click OK.

3. Record the loan.

• If it's a cash loan, you have to enter the payment as a Deposit.
• For non-cash loan, you have to add an Asset account and create a Journal Entry.

4. Record the loan payments.

1. Click Banking.
2. Select Write Checks.
3. Choose the Bank Account you will use to pay the loan.
4. Verify Check NO. and Date.
5. In the Pay to the Order of field, select the name of the bank.
6. Go to the Expenses tab and enter the information.
7. Click Save & Close.

For additional insights, please check this article: Manually track loans.

That's it. Keep me posted if you have more questions. I'm still here to help you more.

Thanks for your reply. I got the money as a loan from a family member instead of the bank , and I do not need to pay back the money with in three years. In this case, how should I record this loan? Thanks!

Hi  HoneyLynn_G,

Thanks for you reply. I got the money as a loan from a family member instead of the bank, and I do not need to pay back the loan with in 3 years.In this case, How should I record this loan? Thanks!

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@pandayeah2017 wrote:

 

Thanks for you reply. I got the money as a loan from a family member instead of the bank, and I do not need to pay back the loan with in 3 years.In this case, How should I record this loan? Thanks!

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if you do not ever have to pay it back it is a gift and not a loan

if you have to pay it back some time in the future

create a long term liability account named for the person you borrowed from, Mom-loan as an example, zero balance

create a deposit for the amount you received, use the Mom-loan account as the source account for the deposit, save