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hhaynes_33
January 9, 2020
Question

How do I set up a company loan to a company officer?

  • January 9, 2020
  • 1 reply
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Original commenter did not share additional details

    1 reply

    Anna S
    Anna S
    January 9, 2020

    Good afternoon, @hhaynes_33.

     

    Nice to have you here in the Community. I've got you covered. Setting up loans in QuickBooks Online is my specialty.

     

    Before you begin, I recommend setting up the loan in QuickBooks to make the process much easier. After doing so, you can create an expense to record the payment. The steps are listed below:

     

    1. Go to the (+) New icon and press Expense.
    2. Choose the business or person you received the loan from in the Payee field.
    3. In the Payment Account drop-down, pick the bank account for the payments.
    4. Enter the Payment Date and select the Payment Method from the drop-down.
    5. (optional) You can use the reference number field to enter any identifying number from the payment receipt.

     

    That's all there is to it! You can also check out this article on making loan payments if you need more information.

     

    I'm only a post away if you have any other questions. Have a great day!

    H
    hiline1
    February 25, 2022

    The heading sounded right but this wasn't exactly what I was looking for. But maybe you can help.

    I want to loan myself money from my corporation in qiuickbooks and pay it back in full when funds are available without any taxation.

    So, I would like to know "how to set  up a loan from the corporation to a company officer".

    Short term if it matters.

    Thank You

     

      C
      Carneil_C
      February 25, 2022

      Thanks for joining the thread, @hiline1. I’ll help you with this concern on how to set up a loan from the corporation to a company officer in QuickBooks Online.

       

      To ensure your loans are accurate, you'll need to create a liability account. Depending on the repayment interval, the Account Type can be either Other Current Liabilities (to be paid in full in one year) or Long Term Liabilities (to be repaid over more than one year).

       

      Here’s how:

      1. Click the Gear icon and choose Chart of Accounts.
      2. Select New.
      3. In the Account dialog, select either Other Current Liabilities or Long Term Liabilities from the Account Type drop-down list, depending on the type of loan and its repayment time frame.
      4. From the Detail Type drop-down list, select either Other Current Liabilities or Long Term Liabilities.
      5. Enter a Name for the account. For example, Loan from Officer/Owner.
      6. Leave the Unpaid Balance field blank.
      7. Hit Save and close.

       
      Here's an article you can refer to for more details on How to record a company loan from a company officer or owner.

       

      Also, I recommend seeking help from your accountant for the best possible advice on this process.

       

      You might also want to visit our help page to browse articles that can guide you with your QBO tasks. To get started head to our QBO help articles at this link.

       

      Additionally, I'll share with you this article if in case you’ll want to get a loan to buy new assets in the future.

       

      You can always reply or reach out to us again if you need anything else with QBO. We're always here to guide and assist whenever you need help. Have a good one!

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