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Bbanda
November 2, 2021
Question

How to enter the deferred interest accrued from the EIDL loan into quickbooks?

  • November 2, 2021
  • 1 reply
  • 0 views

I have set up my EIDL loan as a long-term liability already. We have started making payments, but now aside from the principal amount I need to add the accrual for the deferred interest I would think since the payment I made went straight to the interest only. 

1 reply

G
GlinetteC
November 2, 2021

Hello, Bbanda.

 

I'll share some insights with you about the deferral interest.

 

For deferral interest, you may enter bills for the amount payable to the lender. If you're on cash basis accounting method, you won't deduct the interest until you pay it, but if accrual, the accrued interest billed is a current expense. 

 

Before doing so, I recommend consulting an accountant for other options and ensuring your books are accurate and all transactions are accounted for correctly. 

 

In creating a bill, you can follow these steps:

 

  1. Go to the Vendors > Enter Bills.
  2. Select a vendor from the drop-down, then fill out the other required fields
  3. Choose the type of bill you want to record: Note: For more details on how to record a bill against inventory, check our guide for Windows or Mac.
    • Expenses - Record a bill for expenses incurred by the business such as phone service, rent, and utilities.
    • Items - Record a bill for anything that your company buys, sells, or resells in the course of business such as products, shipping and handling charges, and discounts.
  4. Click Save.

 

Also, I've added an article for additional reference about setting up accounts for the loan and manually tracking them in QuickBooks Desktop: Manually track loans in QuickBooks Desktop.

 

I'll be right here if you have any additional questions. Have a good one @Bbanda!

R
redridinghood
August 29, 2022

This does not answer this question at all.

 

I have watched many videos about how to enter accrued interest in QB. I can create the JE, but when I reconcile the loan account, I have to enter the interest expense again.  this doubles interest expense. 

We are running desktop.

 

Any suggestions?

    G
    Giovann_G
    August 29, 2022

    Thanks for joining the thread, redridinghood.

     

    I'll walk you through the steps of recording accrued interest in QuickBooks Desktop.

     

    Let's make sure the expense account is properly set up and then use the Write check feature to record the payment for the principal amount as a deduction to the liability account and the interest payment as a company expense. I'll show you the step-by-step process.

     

    Set up an expense account:

     

    1. Go to the Lists menu, then select Chart of Accounts.
    2. Right-click anywhere, then Click New.
    3. Choose Expense, then Continue.
    4. Enter the account name for the interest payments or charges.
    5. Hit Save & Close.

     

    These are steps to record loan payments:

     

    1. Go to the Banking menu, then select Write Checks.
    2. Click the Bank Account you want to use to pay the loan.
    3. Verify the Check NO. and Date.
    4. In the Pay to the Order of field, choose the name of the bank.
    5. In the Expenses tab:
      1. On the first line, select the liability account. Then enter the payment for the principal amount.
      2. On the second line, select the interest expense account. Then enter the payment for the loan interest.
    6. Once done, hit Save & Close.

     

    For your reference, you can read this article for more insights: Manually track loans in QuickBooks Desktop.

     

    After you've recorded the loan and interest payment, you don't have to enter the interest expense again during reconciliation. This prevents your interest expense account from doubling.

     

    If the issue persists, I recommend running the Verify and Rebuild data to ensure your company is free from any data issues. 

     

    In addition, I've included this resource to help you if you run into any problems during the reconciliation process: Fix issues when you're reconciling in QuickBooks Desktop.

     

    You're always welcome to post again if you need further assistance with recording the accrued interest or reconciliation. We're available to help you at any time.

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