How To Register Loan In Quickbooks

There are the short term or the other current as quickbooks calls them and you ll see several of those over here.

How to register loan in quickbooks. Remember in accounting there are two types of loans. When the new account window opens look under the assets and liabilities section click on loan and click continue. In the second field enter the expense account used for the loan s interest. In today s episode i am sharing how to record a vehicle loan purchase in quickbooks to grab the smart business owner s guide to bookkeeping for maximum prof. Click ctrl and n to create a new account.

One line is the principal payment applied towards the long term liability to slowly pay down the loan and the second is the interest payment booked under an interest expense account. To set up a business loan in quickbooks log in to your account and click the gear icon followed by chart of accounts new other current liabilities loan payable. Proceed to the account register below. Quickbooks will prompt you to complete a few additional fields in the account details area. Open the write check window ctrl w enter the bank name date and amount.

Open up the chart of accounts by using the lists tab on the top menu bar. Then perform the following actions. From the detail type dropdown select notes payable or loan payable. This is section one. Give the account a relevant name like loan for a car or covid 19 relief loan choose when you want to start tracking your finances.

Add the loan account to the chart of accounts in quickbooks. In the first field enter the account for the loan as well as the amount of your payment. When the check is written in quickbooks each month this is when i would use a quickbooks memorized transaction to save time by the way you split the transaction into three separate lines. But for now let s go ahead and get into setting up loans. Assuming you use quickbooks you can easily set up and record loans and loan payments.

Enter line one to the loan account being paid this is the principal enter line two to an interest expense account this is the interest save down the check. You will then be prompted to enter a name for the loan. Once we re done with that we ll go in and look at the loan manager that quickbooks has. Click the lists tab in the top menu click chart of accounts.