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sigma-utilitiesl
July 13, 2021
Question

Loan from one company to another

  • July 13, 2021
  • 1 reply
  • 0 views

Hello,

 

I'm making a loan from one of my businesses to start-up another. My accountant says this is perfectly ok to do.

I'm just wondering how I categorise the loan 'out' in Quickbooks. There is lots of info on how to create a chart of account for an incoming loan amount/repayments etc but not any info on outgoing loans.

 

Any info would be appreciated!

 

Thanks

1 reply

Certified gold trainer
August 18, 2021

Hello I am surprised that given that your Accountant has given you advice on the loan he/she hasn't told you how to account for it. Perhaps you need one that deals with Quickbooks :)

 

The loan "out" that you mention will be a Liability in your books so should be set up as such in the balance sheet.  If the loan is intended to be repaid in over 1 year it would be a Long Term Liability if less than 12 months a Current Liability.

 

I hope this helps

 

Martyn A Smith A.F.A, M.I.P.A

Institute of Financial Accountants

www.themobileaccountant.co.uk

Certified Gold Quickbooks Trainer and Accountant

www.quickbookstraininguk.co.uk 

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