Yes, you can, @Frieaza. I can also provide you with an alternative way how to set up a loan and loan repayments in QuickBooks Desktop (QBDT) to ensure your books are accurate.
To confirm, you can proceed to the journal entry you created to record the loan received and its repayments. You can verify it by checking the account balances in your Chart of Accounts.
Alternatively, you can also set up a liability account to record the loan and its repayments. Here's how:
- Go to the Lists menu and select Chart of Accounts.
- Right-click anywhere, then New.
- Select Other Account Types. Choose Other Current Liability for short-term loans payable over one year or Long Term Liability for loans payable over a longer period.
- Click Continue.
- Enter the Name and Number for the account, then Save & Close.
Once done, create a vendor for the bank or company you need to pay for the loan, and an expense account to track interest payments. Here's an article for the detailed step-by-step process: Manually track loans in QuickBooks Desktop.
Moreover, you can run reports in QBDT to track your loan balances.
Please don't hesitate to reach out to us if you have other questions about recording loans. We're always here to assist. Keep safe.
