Thanks for joining the Community, jdesai.

You can set up loans in your books by creating liability accounts to track what's owed.

Here's how:

1. In the left navigation bar, go to Accounting, then Chart of Accounts.
2. Click your New button.
3. From the Account Type ▼ drop-down list, choose Long Term Liabilities. If it's planned to be paid off by the end of the current fiscal year, pick Other Current Liabilities instead.
4. In your Detail Type ▼ drop-down, choose Notes Payable.
5. Give the account a name.
6. In the Balance field, enter the amount that's currently in your account.
7. Determine the as of date. Enter today's date if you want to start tracking immediately.
8. Select Save and close.

Once you've created an account for your loan, you'll be able to enter the loan itself. As for handling employee deductions, you can find detailed steps for working with deductions in our Add or edit a deduction or contribution article.

Please feel welcome to send a reply if there's any additional questions. Have an awesome Friday!