Hello there, @newyorktutor.
Let me help you in recording loan fees in QuickBooks Online (QBO).
Entering the loan fees in the first place before recording it as payment, will display as the liability on the Balance Sheet. Follow the steps below if you didn't set up your business loan.
First, create a liability account for the loan.
- Click the Gear icon
- Choose Chart of Accounts.
- Select New.
- On the pop-up window, choose Other Current Liabilities or Long Term Liabilities for the Account Type depending on the type of your loan.
- Choose Loan Payable for the Detail Type
- Enter a name for the account.
- Click Save and close.
Next, enter the opening balance.
- Click the Plus icon (+)
- Choose Bank Deposit.
- On the Account field drop-down, select the bank account where the loan funds will be deposited.
- Enter the date.
- In the Account column on the line items, choose the account you created and the amount.
- Save and close.
Lastly, record the payment.
- Click the Plus icon (+).
- Choose Check/Cheque.
- Add a check number if you send an actual check.
- Enter these information in the Account details.
- First line: Liability account for the loan and the amount of payment
- Second Line: Expense account for the interest and the amount
- Succeeding lines: Any extra fees along with the appropriate accounts.
- Select Save and close.
The set of steps I've shared is a general way how to record loans in QuickBooks Online. But I still recommend contacting your accountant for further accounting-specific help.
Once done, please check this article to view if the information entered is accurate: Run a Balance Sheet report in QuickBooks Online.
You may visit these links to guide you on how to categorize your transactions and reconcile your account flawlessly:
For additional QuickBooks-related concerns, don't hesitate to post them here in the Community. We're always available and willing to lend a hand to your queries. Have a great day ahead.
