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QuickBooks Team

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Hi there, VC bookkeeper.

 

QuickBooks Online doesn't have the option to connect bank loans. I suggest to manually enter the loan transactions in QBO. Before doing the steps below, I recommend contacting an accountant to help you categorizing the transactions.

 

Here's how to enter loan transactions:

 

First, set Liability account to record the loan:

 

1. Click the Gear icon and select Chart of Accounts.

2. Click the New button.

3. In the Account Type drop down list, select Long Term Liabilities. Take note that if you plan to pay off the loan by the end of the current fiscal year, select Other Current Liability. Otherwise, select Long Term Liabilities.

4. From Detail Type drop down arrow, select Notes Payable.

5. Give the account a relevant name, like "Loan for a car."

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 the Save and close button.

 

One done, you can now record the money you got from the loan. please follow these steps:

 

1. Select the Plus icon and the choose Journal Entry.

2. On the first line, select the liability account you've created. Then enter the loan amount in the Credits column.

3. On the second line, select the appropriate asset account from the Account drop down. Then enter the same loan amount in the Debits column.

 

After that, please check this article for additional information and follow step 3 to finish the process: Set up a loan in QuickBooks Online.

 

Please check this article on how to assign multiple categories to a single transaction: Assign, categorize, edit, and add your downloaded banking transactions.

 

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.

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