Thank you for being here, shafferm. Let me help with your inquiry regarding loan management in QuickBooks.
Are you the one who took a loan from a vendor? If so, I'll share the steps on how you can set up a loan and how to record the payment as well.
To get started, you need to set up a liability account. Here are the steps you need to follow:
- Go to the Lists menu and select Chart of Accounts.
- Right-click anywhere, then click New.
- Select Other Account Types, then select Other Current Liability if it's a short-term loan or Long Term Liability if it's payable for a longer period.
- Click Continue and enter all other details of the account.
- Select Save & Close.
Next, create an expense account to track interest payments or fees. Let me show you how:
- Go back to your Chart of Accounts.
- Right-click anywhere, then select New.
- Select Expense, then Continue.
- Enter the account name for the interest payments or fees.
- Click Save & Close.
After that, you can record the loan as a bank deposit (cash loan) or through a journal entry (non-cash loans). You can refer to the following articles for detailed instructions:
Lastly, create a check to record or apply the payment. Here's an article as a guide: Create, Modify, And Print Checks In QuickBooks Desktop.
You can also check out this article that thoroughly discusses the process of manually recording loans in the program: Manually Track Loans In QuickBooks Desktop.
If you are the one lending money instead of borrowing it, the process would be different. In this case, you can create an asset account and use vendor credit to write off or deduct the payment if you want it to apply to your existing bills.
You can refer to these articles for guidance:
However, I would strongly recommend reaching out to your accountant for additional guidance to ensure everything is recorded properly when it comes to managing loans in QuickBooks.
Feel free to explore or save these additional articles as well, in case you might need them in the future:
Don't hesitate to always ask for help or reply to me if you have follow-up questions with any of the steps above, shafferm. The Community is open 24/7 to make sure all your inquiries are taken care of.
