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QuickBooks Loan Manager

Setup an Account for QuickBooks Loan Manager

The concepts of Loan in QuickBooks:

Sometimes a situation arises in a small organization where they are required to Borrow some amount of money for some investments like product development. In that case, they need to record the loan information as a liability in the account and tracking. QuickBooks permits setting up a liability account for both short-term & long-term to track & perform all loan repayments. You can create an individual account to track the loan. In this blog, we will guide how to set up an account for QuickBooks Loan Manager and other essential concepts related to it.

How to set up an Account for a Loan?

Create a liability account:

Follow the below-mentioned instructions to create a liability account:

  • Locate the Settings icon then choose Chart of Accounts
  • Hit on New to set up a new account
  • Find out Account Type in the drop-down menu and choose Non-current Liabilities
  • Discover the Detail type listed on the dropdown and choose Loan Payable
  • Give a suitable name to the account
  • Look for the Balance field, write the amount & select the specific date you wish to start tracking
  • Input the complete loan amount in the field which says Amount 
  • Hit on Save & close.

Do a Bank Transaction:

  • Find out +New icon and then choose the Cheque tab
  • In the Bank account, enter the account that you want to fund
  • After proceeding, discover the account that you monitor the loan repayments
  • Verify it and hit on Save & Close.

How to record the loan payments?

  • Find out the +New icon & choose the Bank Deposits tab
  • Discover deposit To box, choose the suitable account associated with the loan
  • Now, the next step is to enter the mandatory information displayed below the New Deposit box. The displaying fields:
  • Account: Write the name of the customer linked with the amount
  • Received Form: Write the customer or organization name to which the loan is granted.
  • Memo: Integrate a vast description of a loan 
  • Payment method: Fill in the payment mode that you used while loan payment
  • Ref No: Write the Cheque number 
  • Class: Fill in the information regarding class tracking.
  • Write the amount of interest charged on the loan issued (If any)
  • Recheck all filled details once and hit on the save button.

How to close entire open invoices in QuickBooks by recording a loan?

You need to create another current asset account if the loan amount is to be paid in the present year otherwise you have to create a non-current Asset account for future payments. 

Loan Account creation:

Follow the steps:

  • Locate the Gear icon located at the right top of the monitor 
  • Now, you have to choose the Chart of Accounts
  • The next step is to hit on Next button and choose the current Assets tab
  • Find out details type, choose a loan to others, and then click Next
  • Now give a suitable name
  • Close it after clicking on Save.

How to enter the opening Balance?

To perform this you are required to create a journal entry & credit which permits the loan to close entire open invoices.

Below is the list of steps:

  • Go to the “+” New icon present on the right side of the screen and locate the journal entry button
  • Discover the ‘Account‘ field and write the loan holder’s name & amount in a box named Debit
  • Discover the second number field named Account and write Account Receivable
  • Now locate the credit field and type the loan amount & name in the field named customer.

What to do for creating the monthly recurring invoices to perform loan Repayment?

QuickBooks also permits recurring invoice generation to notify the customer about loan Repayments. To create this, follow the below-mentioned instructions including steps to create a product item, recurring invoice & enter loan payment:

Product item creation in QuickBooks:

  • The first step is to select a gear icon
  • After this, discover the products & services tab
  • Hit on New and then choose Non-inventory
  • Enter Loan Repayment in the displaying field. 
  • Find the drop-down menu named account and click on Customer Loan A/R listed in it.

Recurring invoice creation:

  • To create this choose recurring transaction after clicking on the gear icon
  • The next step is to locate a new one and choose invoice from the dialog box
  • Enter the customer name & after that click on product & services
  • Find out the Account field as done while creating a product item and write the due amount
  • Choose Edit schedule and after that click intervals, write the initial & end date 
  • Hit on the Save button to save a template.

How to enter a loan payment?

  • You are required to locate the +New button & hit on Receive Payment.
  • Select Deposit to display box, choose the Un-deposited Funds, and click on Save.

How to reach the team:

We hope that the above blog teaches how to record loans in QuickBooks. If you are still stuck in performing any of the above-mentioned steps or to know more about how to resolve certain QuickBooks errors, reach the professional team at toll-free QuickBooks number +1800-892-1352 who is present 24/7 and available to serve you with the best resolution in a single call. The team members containing years of experience, will carefully address all your queries and assist accordingly. In case, you failed to reach through the phone, you can visit the website bigxperts.com to get better assistance.

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