Thank you for getting in touch with the Community, lkhancox24.
In QuickBooks Online, recording loans as an expense can only be applied to interest payments. On the other hand, we can create a liability account for recording loans into your bank account. I'd be glad to discuss this in detail and walk you through the process.
To set up a loan in QuickBooks Online, follow these steps:
1. Create a Liability Account:
- Sign in to QuickBooks Online as a primary admin.
- Go to Settings and select Chart of Accounts.
- Click New to create a new account.
- Choose Long Term Liabilities as the Account Type ▼ dropdown and Notes Payable as the Detail Type ▼ dropdown.
- Give the account a relevant name, such as “Loan for a car” or “Relief loan.”
2. Determine the Loan Balance:
- Leave the Opening Balance at US $ 0 and select Save.
- Categorize the bank deposit in your liability account to establish the beginning balance.
- For an existing loan, set the opening balance to the current payoff balance.
3. Record the Loan Repayment:
- Select + New.
- Choose Check.
- Add a check number if you plan to send an actual check. If you use direct withdrawal or an EFT, enter Debit or EFT in the Check no. field.
For a comprehensive understanding of the process, I recommend referring to this article for the detailed instructions: Set up a loan in QuickBooks Online.
Additionally, you may check out this article to get more information on how to record, edit, and delete expenses in QuickBooks Online: Enter and manage expenses in QuickBooks Online.
If you have further questions about other concerns in QuickBooks Online, please feel free to reach out. I will be checking this thread from time to time. Have a productive day!
