Someone outside my company was kind enough to loan money to me to help start and run my business. We agreed that I will start repaying after 12 months.
How do I log this money? The loan was calculated for an amount that will help keep my business going for 12 months, so it was not a specific amount for specific equipment or payments that needed to be made.
Thank you for reaching out to us. Let me help you in tracking your loan.
Let's first set up a liability account to record what you owe. Here's how:
Once done, we can record the repayment using a cheque. We can just add a line item to include the interest. Follow these steps:
For the new users of QuickBooks Online, I suggest checking this link: Get started. From there, you'll see different articles that'll help you in managing your business.
Do you have other questions? Leave a comment below and we'll respond as soon as we can.
I have the same situation. Don't have a problem with the accounting side, but trying to figure out how to set up the person who provided us the loan. Do I set them up as a customer, a vendor, or something else?
Thanks for joining in this thread, @EricSD.
I'll tell you which type of client you have set up with the person who provided you with the loan. Thus, I can guide you accordingly.
You'll need to set up this loan financier in QuickBooks Online as a vendor. Let me show you how:
For more details, check out this video tutorial: Add a supplier in QuickBooks.
After doing so, you can follow the steps described above to record the repayment. For more information, visit this link: Set up and manage the loan in QuickBooks Online.
Additionally, check out these articles below on how to run a quick report of your loan account and also manage vendor data:
Don't hesitate to leave a comment below if you have any other questions about your loan transactions. I'll be around to help. Have a good one, @EricSD.