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stynen
January 16, 2022
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How do I categorize EIDL money in QuickBooks Self Employed?

  • January 16, 2022
  • 1 reply
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Best answer by ChristieAnn 11

I appreciate you for coming back to the thread to add clarification about your concern, stynen. With this, I'll be sharing further details on how categorization works in QuickBooks Self Employed.

 

When you categorize, QuickBooks Self Employed arranges your transactions on the correct line of your Schedule C. This organizes your income and expenses so you know what areas of your self-employed business have the biggest impact. That said, you can categorize the Economic Injury Disaster Loan (EIDL) as Personal Income in QBSE. Once you begin paying the loan, the payment for the loan capital will be categorized as Business Loans and allocated as Schedule C: Interest for the interest paid.

 

Also, I still suggest consulting an accountant so they can provide suggestions on how to properly handle the transactions, especially with the category to use for the EIDL money. This is to ensure your records are in shipshape.

 

Lastly, you may refer to this article to see some of our latest resources for your business that may help during COVID-19: COVID-19 Small Business Help: Explore QuickBooks resources.

 

Please let me know if you need clarification about this, or there's anything else I can do for you about categorizing entries. I'll be standing by for your response. Have a great day and stay safe.

1 reply

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SarahannC
January 16, 2022

Hello there, @stynen.

 

I can walk you through how you can categorize the EIDL money within your QuickBooks Self-Employed (QBSE) account. You can follow these steps:

 

  1. Go to the Transactions menu.
  2. Find a transaction on the list.
  3. Select the appropriate category.
  4. Review the category in the Category column. QuickBooks tries to categorize transactions for you.
  5. If you need to change the category, select the category link.
  6. Select a general type, and choose a more detailed category.

 

To ensure you'll be using the correct category, I'd recommend consulting a tax advisor. They can assist you with this and help you keep everything accurate in your account. 

 

You can refer to these articles as your guide in categorizing other transactions:

 

 

Please feel free to leave a message on this thread if you have more questions. I'll be here to provide more details as I can. Take care always. 

S
stynenAuthor
January 17, 2022

Sorry for not being clear, but my problem is I don't know which category to choose.  In my question I ask how to categorize EIDL money and in your answer you tell me to categorize it.  I'm trying to figure out WHICH category to choose.  Thanks!!

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ChristieAnn 11Answer
January 17, 2022

I appreciate you for coming back to the thread to add clarification about your concern, stynen. With this, I'll be sharing further details on how categorization works in QuickBooks Self Employed.

 

When you categorize, QuickBooks Self Employed arranges your transactions on the correct line of your Schedule C. This organizes your income and expenses so you know what areas of your self-employed business have the biggest impact. That said, you can categorize the Economic Injury Disaster Loan (EIDL) as Personal Income in QBSE. Once you begin paying the loan, the payment for the loan capital will be categorized as Business Loans and allocated as Schedule C: Interest for the interest paid.

 

Also, I still suggest consulting an accountant so they can provide suggestions on how to properly handle the transactions, especially with the category to use for the EIDL money. This is to ensure your records are in shipshape.

 

Lastly, you may refer to this article to see some of our latest resources for your business that may help during COVID-19: COVID-19 Small Business Help: Explore QuickBooks resources.

 

Please let me know if you need clarification about this, or there's anything else I can do for you about categorizing entries. I'll be standing by for your response. Have a great day and stay safe.

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