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tonjunee
June 1, 2020
Question

Does anyone know how to turn current liabilities into long term loans?

  • June 1, 2020
  • 1 reply
  • 0 views

I am trying to turn current accounts payable (due to owner) into a long term loan.

 

I won't be able to pay off all the loans due back to the owner within the year. So going into the next year, how would I change the current loan into a long term loan?

 

Is there a way to do this? I don't see anything in the net.

 

 

1 reply

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Nick K
June 1, 2020

Hi tonjunee,

 

Making sure loans are tracked properly is important and i can point you in the right direction.

 

When changing account information in QuickBooks Online it can have many unseen effects on your books if the wrong accounts are picked. Due to this I'd suggest asking your accountant which need to be picked and if it may cause any issues in your Chart Of Accounts. If you don't have an accountant, you can find one locally by using this link to our find an accountant page. Once they explain the process on how to change an accounts payable into a long term loan we can walk you through how to make the change in your Online account. 

 

Have a great day!

T
tonjuneeAuthor
June 1, 2020

Hi Nick,

 

That is the reason I'm doing the books right now, I am trying to save money from using an accountant.

 

Isn't there a way to do this without using an accountant right now?

    L
    LauraAB
    June 2, 2020

    Thanks for following up, tonjunee. I know how important it is to make every dollar go the extra mile for a business owner and taking care of bookkeeping yourself is certainly a great option for doing that. While QuickBooks is designed for easier business bookkeeping, it's not intended to replace an accountant or accounting knowledge. Certain situations, such as wanting to change the accounting of a current liability to a long-term loan, require accounting knowledge to get a sense of the impact this change will make on your books.

     

    For example, it may be as simple as to stop tracking whatever it is as a current liability and setting it up as a loan instead, but as tech support agents, the QuickBooks Team cannot advise on that. This is why an accountant is ideal in this situation.

     

    I hope that helps clarify things. Take care.

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