Hi Jadallah!
I'm here to show you the correct way of recording a loan.
Yes, the money from a loan is not an income to your business. You'll need a liability account to track the loan. Here's how to set it up:
- Go to the Accounting menu and select Chart of Accounts.
- Select New. Choose either Long Term Liabilities or Other Current Liabilities for the Account Type and Notes Payable or Loan Payable for the Detail Type.
- Enter the loan amount in the balance field and the as of date.
- Tap Save and close.
Once done, you can create a journal entry if you want to put the loan money into the bank. Go to the + New button and select Journal Entry.
Also, you can create a cheque to record a payment. Just add a second line item to include the interest. Please check this link for the detailed steps: Set up a loan in QuickBooks Online.
For the deposit you've made, I suggest you delete it so it won't show on your sales report. Open the deposit transaction, click More, and select Delete.
Visit our Help Articles page for more tips and references in managing your business.
Leave a comment below if you need more help. Take care!
