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Level 1

Recording loan payments

Hello - I am not an accountant by any means. I am trying to do my own books for a small business and need help with how to record items. I have taken out a kabbage loan from time to time. How should I be recording this in quickbooks? The money comes into my account as a lump sum and I pay it back over a few months with interest.

 

Any help is appreciated.

Thanks,

Jeff

4 Comments
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Moderator

Recording loan payments

Welcome to the Community, jtb19nh2.

 

Let' set up a liability account first in QuickBooks Online (QBO). Youll be using this account to record loan and its payments. I'll guide you how.

 

  1. Go to the Gear icon and choose Chart of Accounts.
  2. Click on New.
  3. Select Long Term Liabilities from the Account Type drop-down arrow. If you plan to pay off the loan by the end of fiscal year, choose Other Current Liabilites.
  4. From the Detail Type drop-down arrow, select Notes Payable.
  5. Choose when you want to start tracking your finances from the ▼ drop-down arrow.
  6. Enter the full loan amount as a negative amount in the Amount field. Since the future payments to the bank are a liability for your business, the amount should be negative.
  7. Click on Save and Close.

Once done, you can record the loan with interest as an expense in QBO. For more details, check this article: Make a loan payment in QuickBooks Online.

 

If you want to learn more "How do I" steps, visit our Help Articles page for reference.

 

We're a couple of clicks away if you have further questions. We're here to help.

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Community Champion

Recording loan payments

If you have one account at Kabbage and it acts as a revolving line of credit you could track it as if it were a credit card. You would post "cc" charges to it with the detail line being your bank account.

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Level 1

Recording loan payments

Thank you. I am using quickbooks desktop but I think its pretty much the same process.

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Level 1

Recording loan payments

Thanks you.

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