Hello Kyla,
To properly track the short-term portion of a loan in QuickBooks, you will need to create a journal entry that records the appropriate portion of the loan as a current liability. Here are the steps to create the journal entry:
Go to the "Company" menu and select "Make General Journal Entries."
Enter the date of the loan and a reference number or description for the entry.
In the "Account" column, select the account where the loan is recorded, such as a Long-Term Liabilities account.
Enter the total amount of the loan in the "Debit" column.
In the next line, select the account where you want to record the short-term portion of the loan, such as a Current Liabilities account.
Enter the amount of the short-term portion of the loan in the "Credit" column.
Save the journal entry.
You should perform this journal entry at the end of each month or quarter, depending on your reporting needs. This will ensure that the short-term portion of the loan is properly recorded as a current liability on your balance sheet. By performing this process regularly, you can ensure that your financial statements accurately reflect your company's financial position.
Regards,
Muhammad [last name removed]
Director
[company name removed]
