Im selling my business and financing the sale, how do I record the loan?

I appreciate you for taking the time to visit Community for assistance, @jrbarnes. I’m here to help so you can record the loan properly in QuickBooks Desktop.

To start, you’ll need to set up a liability account to track the loan. Here’s how you do it:

1. Go to the Lists menu, then select Chart of Accounts.
2. Right-click anywhere, then click New.
3. Choose Other Account Types, then select the right account type for your loan:
   • Use Other Current Liability for short-term loans payable over one year
   • Use Long Term Liability for long-term loans payable over a longer period.
4. Press Continue.
5. Enter the name and number for the account.
6. Select Save & Close.

Once done, create a new vendor for the bank or company you need to pay for the loan. I’ll show you how:

1. Select the Vendors menu, then go to the Vendor Center.
2. Click New Vendor.
3. Enter a name.
4. Select OK.

After, you'll want to make an expense account to track fees and charges. Then, you can record the loan amount and its payments. Check out this guide for complete instructions: Manually track loans in QuickBooks Desktop.

When you start recording transactions associated with this event, you can generate reports anytime to see the progress and structure of your business.

I’d be glad to help you more if you have any other questions or concerns about managing your transactions. Select the Reply button below to add your comments. Take care always!