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Web321
September 29, 2021
Question

Repayment of loan I made to my other company

  • September 29, 2021
  • 1 reply
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I have made a loan from my company to my other company and I need to add the interest I am charging them to the account. I have the loan account set up as a current asset account but every month the balance needs to go up due to interest. Which account do I use for the interest?

 

1 reply

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Nick K
September 29, 2021

Hi Web321.

 

Using the right accounts when entering loans and other transactions is the key to good bookkeeping. I'd be happy to point you in the right direction for this.

 

Picking the right account is as important as how you enter the transaction. For this reason I recommend reaching out to your accountant on which account to choose and the best way to enter this. If you don't have an accountant no worries, we have your back. You can go to My Accountant>Find a pro to help to find one in your area.

 

If you have any questions let us know and we'd be happy to help!

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