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Mollie02
February 23, 2021
Question

Company loan given to employee

  • February 23, 2021
  • 1 reply
  • 0 views

Hi there, I need to get some information regarding a loan (advance) given to an employee and how to enter the loan into Quickbooks online so it shows in the company records.  The employee pays back part of the loan every week through a deduction from their paycheque( after taxes).  I need to know how to enter this all as it was never done and the companies year end is upcoming.  This loan occured in August of 2020 and repayments have been happening since then.  None of this has been recorded to this date. The loan was a substantial amount.

1 reply

J
JamesM4
February 23, 2021

Hi Mollie02,

 

It's vital you're able to record the company loan the right way so you can continue working with clean books. I'd be happy to steer you in the right direction so you can focus on doing the things you enjoy. 

 

To ensure accuracy in your books, I recommend contacting an accounting professional to get more info on recording the transactions. Doing this will help prevent any future discrepancies in your books. If you're not in contact with one, I encourage you to search for one on our website using this link here. In the meantime, I encourage you to check out this powerful article with more info on how to: Set up a loan in QuickBooks Online. The article provides helpful info about setting up a loan and I recommend browsing through it for more info. 

 

I'll also leave this question here so other accounting professional members can chime in. Feel free to ask other questions, I'm here to help. 

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