How to record hard money loan, draws and intrest only payments.
I own a residential remodeling company which is an LLC. I used the LLC to purchase a property to flip with a hard money loan. I didnt handle everything correctly and made some mistakes. So I am trying to record in quickbooks online my Loan, Payments, and Draws. Since it is interest only, I recorded my payments on the loan as "interest expense." Not sure if thats correct. Where and How do I record the Draws? I am a relatively new business owner and I do all the book keeping myself. Probably not the best idea but it has to be this way right now. Also, want to add, I didnt keep expenses separate and it is nearly impossible at this point to track the differences in what materials went where since we remodel by day and flip by night. This obviously requires similar materials. Thanks for any input!
Jake
Topcraft Construction LLC
