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L
lkhancox24-gmail
July 13, 2024
Solved

I just accepted my Quickbooks short term loan, but I am unsure of how to record it in Quickbooks. Do I record the loan as an expense?

  • July 13, 2024
  • 1 reply
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Original commenter did not share additional details
Best answer by LouiseG12

Yes, @lkhancox24, you don't need to create an account under COA since you already have a section for that.

 

In QuickBooks, when you set up a term loan, the software will automatically generate a new section specifically for term loans in the COA. This feature helps organize and track term loans within the accounting system.

 

Moreover, I've got these articles for future reference that could be handy once you need to create a sub-account and make an account inactive in your COA:
 

 

We're always available to assist you, if you have more questions or concerns about accounts-related matters in your COA, don't hesitate to add a reply below. Have a good one.

1 reply

I
I used to have an invoices sho
July 13, 2024

Thank you for getting in touch with the Community, lkhancox24.

 

In QuickBooks Online, recording loans as an expense can only be applied to interest payments. On the other hand, we can create a liability account for recording loans into your bank account. I'd be glad to discuss this in detail and walk you through the process.

 

To set up a loan in QuickBooks Online, follow these steps:

 

1. Create a Liability Account:

  1. Sign in to QuickBooks Online as a primary admin.
  2. Go to Settings and select Chart of Accounts.
  3. Click New to create a new account.
  4. Choose Long Term Liabilities as the  Account Type, and Notes Payable as the Detail Type.
  5. Give the account a relevant name, such as “Loan for a car” or “Relief loan.”

 

2. Determine the Loan Balance:

  1. Leave the Opening Balance at US $ 0 and select Save.
  2. Categorize the bank deposit in your liability account to establish the beginning balance.
  3. For an existing loan, set the opening balance to the current payoff balance.

 

3. Record the Loan Repayment:

  1. Select + New.
  2. Choose Check.
  3. Add a check number if you plan to send an actual check. If you use direct withdrawal or an EFT, enter Debit or EFT in the Check no. field.

 

For a comprehensive understanding of the process, I recommend referring to this article: Set up a loan in QuickBooks Online.

 

Additionally, you may check out this article to learn how to record, track, and use loans in QuickBooks Online: Track customer loans in QuickBooks Online.

 

If you have further questions about other concerns in QuickBooks Online, please feel free to reach out. I will be checking this thread from time to time. Have a productive day!

    L
    lkhancox24-gmailAuthor
    July 14, 2024

    Thank you for the information! I've just discovered that I now have a new section called "Term Loan", which has my loan information listed and contains a payment button. I'm assuming that I don't need to create an account under Chart of Accounts if it's showing up under Term Loan? 

    L
    LouiseG12Answer
    July 14, 2024

    Yes, @lkhancox24, you don't need to create an account under COA since you already have a section for that.

     

    In QuickBooks, when you set up a term loan, the software will automatically generate a new section specifically for term loans in the COA. This feature helps organize and track term loans within the accounting system.

     

    Moreover, I've got these articles for future reference that could be handy once you need to create a sub-account and make an account inactive in your COA:
     

     

    We're always available to assist you, if you have more questions or concerns about accounts-related matters in your COA, don't hesitate to add a reply below. Have a good one.

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