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Jul 5, 2024 11:34 PM UTC
Question

How do you account for the ongoing interest for a loan? I have an SBA loan set up as a long term liability , but the ongoing interest is not recognized.

I record the payment, and they are deducted from the initial balance, but the Quickbooks account has no mechanism for recognizing that interest is being added monthly.

1 reply

BigRedConsulting
Jul 6, 2024 12:17 AM UTC

When you get your statement each month, enter the interest in the loan account's register as an increase to the loan.