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April 28, 2024
Question

How do I add a short term loan to QBO? is it considered other current Liabilities since it needs to be paid off within 12months?

  • April 28, 2024
  • 1 reply
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The reason for the loan is to help pay for repairs on our trucks, so what would I put under detail type.  Or do I put this loan in a journal?

1 reply

April 29, 2024

I know some ways how to add a short-term liability in QuickBooks Online (QBO), Zitro. Let me walk you through the process. 

 

To set up a short-term loan in QBO, you need to create an account in the Chart of Accounts (COA) before creating a Journal Entry (JE). To access the COA, click on the Gear icon and create your account from there. 

 

Here's how: 

 

Step 1: Set up the Short-Term Loan account in your COA

 

  1. Go to the Gear icon and choose the Chart of Accounts under the Your Company column.
  2. Click New right beside the Run report button. 
  3. In the Account Type field, choose Other Current Liabilities
  4. Within the Detail Type field, click Other Current Liabilities
  5. You can also rename the Name field into Short Term Loan or anything that suits to your needs. 
  6. From the Unpaid balance, you can type your loan amount in there. 
  7. Fill up other fields according to your preferences.
  8. Once done, click Save and Close.

 

You can check out this article for steps 2 and 3 since this resource explains how to record a loan repayment and create a Journal Entry. When you're ready to pay back the loan, it'll come in handy: Set up a loan in QuickBooks Online

 

It's also best to consult your accountant for more accuracy. 

 

Furthermore, you can also make the Journal Entry recurring by tapping the Make Recurring option located at the bottom of your Journal Entry window. 

 

We're still here to back you up whenever you want some assistance. Feel free to leave your concerns in the comment section, and we'll help you in any way we can.