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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
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.
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.
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.
Thank you. I am using quickbooks desktop but I think its pretty much the same process.
Thanks you.
Hi, I have set up the loan, but the money was used to pay AP invoices. How do I record that? It actually never made it into cash/bank account.
I appreciate you for joining this thread, @Viola25. I've got some insights about recording loan payments in QuickBooks.
We can use a clearing account since you used the loan for your A/P invoices. It is used to move money from one account to another when you cannot move the funds directly.
To set up a clearing account, here's how:
Then, create a journal entry to use the clearing account. For detailed steps, please see this article: Create a clearing account.
I’d also suggest working with your accountant for additional guidance. They can advise you on what account A/R or A/P account to use. If you’re not affiliated with one, you can check our ProAdvisor page and we’ll help find one from there.
If you want to keep track of your loans and be reminded about upcoming payments, you can track and manage your loans with the QuickBooks Loan Manager.
Keep me posted if you have other questions about recording loan payments. I'll be happy to help you again. Stay safe!
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