How to Set Up a Loan in QuickBooks
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If you’re looking to set up a loan in QuickBooks, you’ve come to the right place. In this blog post, we’ll walk you through the steps necessary to get everything set up correctly. By the end, you’ll be able to track your loan payments and see how much you owe at a glance. Let’s get started!
Checkout this video:
Hover over Company at the top of the QuickBooks screen and select Company Information .
In the popup window, go to the Advanced tab and find the section labeled Accounting. Under Financial Statement Presentation, check the mark next to Include Unapproved Invoices. This will ensure that all of your invoices—not just the approved ones—show up on reports like your balance sheet.
Now go to the Customers menu and select Customer Center.
Select Company Information and then click on the Loans tab.
In the Company Information section, select the Loans tab. You’ll see three options:
1. Create a New Loan
2. QuickBooks Loans
3. Loan Manager
If you want to set up a new loan, click on the “Create a New Loan” option. If you want to set up a QuickBooks loan, select the “QuickBooks Loans” option. Lastly, if you want to manage an existing loan, select the “Loan Manager” option.
In order to set up a loan in QuickBooks, you’ll need to click on the “Set Up Loan” button.
This will open up a new window where you’ll be able to enter in all of the pertinent information about your loan.
You’ll need to provide the following information:
-The name of the lender
-The loan amount
-The interest rate
-The repayment schedule
-The start date of the loan
Enter the name of the lender, the amount of the loan, the interest rate, and the loan term.
In QuickBooks, you can set up a loan as either long-term debt or as an asset account. Long-term debt appears on the balance sheet, while asset accounts appear on the Profit & Loss report.
To set up a loan as long-term debt:
1. Go to the Company menu and select Chart of Accounts.
2. Click the New button and select Loan from the Account Type drop-down menu.
3. Enter the name of the lender in the Account Name field.
4. In the Description field, enter a brief description of the loan, such as “8% loan from ABC Bank.”
5. Leave the Account Number field blank since this is not a real bank account.
6. Click Save & Close to save your changes.
To set up a loan as an asset account:
1. Go to the Company menu and select Chart of Accounts.
2. Click the New button and select Asset from the Account Type drop-down menu.
3. Enter “Loan from XYZ Bank” in the Account Name field and enter a brief description of the loan in the Description field (e.g., “8% loan from XYZ Bank”).
4. Leave the Account Number field blank since this is not a real bank account.”
Click on the “Save” button located in the upper right-hand corner of the “New Loan” window to save your changes and close the window. You can also click on the “X” in the upper right-hand corner to close the window without saving your changes.
