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Bbanda
February 1, 2022
Question

How to pay a bill with a personal loan I have received for my business?

  • February 1, 2022
  • 1 reply
  • 0 views

I let my company borrow 3500.00 to pay for property taxes in cash. I have entered the loan into QuickBooks as a short-term loan (expect to pay back within the year). However, I would like to show I used this money to pay my company tax bill. How can I do this, if when I go to pay the bill I can only select a bank account or credit card payment option?

 

When I entered the loan QB listed it as follow:

Other Current Liability $3500

Opening Balance Equity -$3500 (not sure how to get rid of this negative) 

1 reply

AlexV
AlexV
February 2, 2022

Good day, Bbanda!


Let me assist you in recording a loan and paying a bill.


It's good that you have a liability account to use in tracking loans. When you record a loan, it should be deposited into a bank account. Then, you can use the same bank account to pay the bills.


Here's how to record a loan:

  1. Go to the Banking menu and select Make Deposits.
  2. Select the account to deposit the loan into from the  Deposit To field.
  3. In the From Account column, select the Liability account and enter the other details needed such as date and amount.
  4. Tap Save & Close.

 

Check this link for more details on how to track and pay loans in QuickBooks Desktop: Manually track loans in QuickBooks Desktop.


In addition, it seems that you entered the loan using a journal entry. If so, you'll want to seek some assistance from your accountant to ensure accuracy and avoid issues.


I also added this link if you need help in reconciling your accounts: Reconcile an account in QuickBooks Desktop.


Post again here if you have other concerns aside from this. We're available 24/7 to help you.

B
BbandaAuthor
February 2, 2022

Thank you for the response. The only problem with this is that I didn't deposit the loan into the bank, I just went to the tax office to pay the bill in person using the cash from the loan. Now I find myself in a loop trying to figure out how to record this properly. I should have deposited the cash from the loan into the bank but it wouldn't all be clear in time for me to make the payment as it was due that same day. 

A
Ashleigh1
February 2, 2022

Hello Bbanda, thanks for coming back to us, we would advise you speak to a trained and qualified accountant who will be able to help and guide you on the best way to record this in your account. 

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