Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
We are a company that has been in business for 5 years, and have transitioned to QuickBooks this year. The company has an outstanding loan to an external company (monies loaned several years ago) and has collected payments against this loan this year. How best can we set up this loan in QB so that it has a starting balance, and then, against which, we can apply payments as they come in? This is a simple, no-interest loan with no ties to invoices or services from the company, so we will only record deposits from it. Thanks in advance.
Solved! Go to Solution.
Thanks for getting back here, @ddisimone.
You can follow the steps provided by my colleague, MirriamM in setting up the loan and recording the payment. You have to make sure that the loan amount is recorded correctly. For visual reference, please see these screenshots:
Creating a liability account to record the loan:
Record the money you got from the loan:
Here's a great source where you can find articles that can help you in managing your books in QuickBooks, please visit our QBO help articles page. This includes topics such as reconciliation, track income, and expenses, run reports, etc.
Keep me posted if you have any other concerns about recording loans in QBO. I'm always here to help. Have a great day ahead.
Hi there, @ddisimone.
Let me share information on how you can set up a loan in QuickBooks Online (QBO).
To get started, you'll need to set up a liability account to record the loan. Here's how:
Once you're ready to record the payment, follow step 3 on this article: Set up a loan in QuickBooks Online.
In case you want to run reports to know where your company stands in terms of income and expenses, visit this resource: Common custom reports in QuickBooks Online.
If you have any other questions, don't hesitate to reach back out. I’m here to answer them for you. Take care.
Thank you for the quick reply. The directions are clear for setting up a loan that one would be taking out in the name of the company but my situation is the opposite. We loaned out money several years ago and there is a balance as of 01 Jan 2020, the beginning of our fiscal year. I am trying to understand how to set up that loan to show we have loaned the money and are receiving payments against it. Can you advise on this situation?
Thanks for getting back here, @ddisimone.
You can follow the steps provided by my colleague, MirriamM in setting up the loan and recording the payment. You have to make sure that the loan amount is recorded correctly. For visual reference, please see these screenshots:
Creating a liability account to record the loan:
Record the money you got from the loan:
Here's a great source where you can find articles that can help you in managing your books in QuickBooks, please visit our QBO help articles page. This includes topics such as reconciliation, track income, and expenses, run reports, etc.
Keep me posted if you have any other concerns about recording loans in QBO. I'm always here to help. Have a great day ahead.
I have the same issue. Were you able to get an answer to your issue? If you can please share so I can set mine the same way.
Good day, nwagnitz.
I'd be glad to show you how to set up a loan in QuickBooks Online (QBO).
In QuickBooks Online, you can set up a liability account to record the loan and its payments. This account tracks what you owe.
Here's how:
For more information about managing loan payments, check this article (Proceed to Step 3): Make a loan payment in QuickBooks Online.
In case you need help reconciling your account, refer to this link: Reconcile an account in QuickBooks Online.
Let us know if you have other concerns or additional questions besides setting up a loan in QBO. The Community is always here to help you out. Take care, and have a good day
I was going through this same issue and obviously the solution provided wasn't accurate to meet the need as it solved the reverse loan type. However, in the chart of accounts I was able to find some better resources...
Add a new account in the chart of accounts under: "Other Current Assets" this will then allow you to choose the account type "Loans to Others." Set this account up according to your loan terms and needs and it should work.
Hi,
i have done this, but im not sure how i record the monies we have lent too a customer
can you help?
Hello there, @lucy ddg.
I appreciate you for joining the thread. Let me help you record a customer loan in QuickBooks Online.
The different ways we can record them depend on the purpose of the loan. The first option is to use loans to close open invoices, in which we can create an account first to track the loan and the repayment. I'll guide you on how:
Then, create a Journal Entry that creates the opening balance of the loan and adds credit to the accounts receivable for the customer. We can apply the credit to the open invoices. Here's how:
We also have a second option to issue a multi-purpose loan to your customer. You can follow Option 2: Issue a multi-purpose loan to your customer from this article for the step-by-step process: Track customer loans in QuickBooks Online. It also includes steps for creating a recurring invoice for your customer's monthly payments.
In addition, I recommend reaching out to your accountant for additional guidance regarding this matter. This way, we can ensure the accuracy of your books. If you're not affiliated with one, you can utilize our Find an Accountant tool to look for one in your area.
Please let me know how this goes, and leave a reply below if you have additional questions about recording loans in QBO. I'll be around to help. Keep safe always.
I have a similar issue. My company buys apartment complexes that are run down an need rehabbing. We get the loan and money from our investors. With each property we are given so much contruction money to rebuild them. As the properties are completed and units rented until the properties are at full capacity and running on their own we sometimes loan the properties money to get going. We just invoice it to the property no interest or monthly payments. We get our money back when we refinance the property or sell it. So how would I catagorize this loan to the property in my coa and on my financial statements?.
I can help record the loan in QuickBooks Online (QBO), MimiSheila6.
We can create and set up a liability account to keep track of the loan. Let me walk you through the process.
You can also visit this page about recording a loan repayment in QuickBooks. It's when you're ready to pay back the loan.
Please let me know if there’s anything I can help with you. I’m here determined to answer them for you. Have a great day.
This works great for mee too.
the “loan to others”
How then do you record when then make you a payment???
I've got your back on recording loan payments in QuickBooks Online (QBO), Daniel.
If you're the one who's making a payment, you can write a check to record your loan payments. Here's how:
On the other hand, you can use a bank deposit if you are the one who's receiving payment. Most importantly, I still recommend seeking help from your accountant on recording your loan payment. They can provide other options to take based on your recording practice and business needs.
As always, you can visit our QuickBooks Community help website if you need tips and related articles in the future.
Should you need further assistance recording loan payments. I'm available here to help any time,
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.
For more information visit our Security Center or to report suspicious websites you can contact us here