It is quite common for businesses to take a loan from banks and other financial institutions; however, taking a loan and managing loan are two different things. Managing loans can be quite hectic as you have to take care of the future too. But if we say QuickBooks can provide you helping hand in managing the loan, what are your views about it? You should be thrilled to know that QuickBooks is there for its users when they need help managing their loan and never missing any loan payment. If you have any query regarding how to set up a loan in QuickBooks Online, then you call QuickBooks Support number to get immediate assistance from the experts. You can even go through this blog to read steps to set up your loan in the QuickBooks Online.
Why Add Loan on QuickBooks Online?
You have to manually set up and manage the loan payment as there is no loan manager in the QuickBooks Online. For manually adding the loan on your QuickBooks Online you need to have detailed information about this topic. What are the benefits of setting up the loan in QuickBooks? It can be used for calculating the amortization schedule for the pending loan payment and even keep an eye of the due installment by measuring the loan balance.
Steps to Set up Loan in QuickBooks Online
You can follow below points for setting up loan payment in QuickBooks Online:
Create a Liability Account to Record a Loan
- You need to open QuickBooks Online > Settings > Chart of Accounts (COA) > New.
- Now click on Account Type > Long Term Liabilities. If you plan to pay the loan by the end of running fiscal year, select Other Current Liability option.
- Then in the dropdown of Detail Type, click on Notes Payable.
- Now name the account and remember to give it a relevant name to understand what the loan is about.
- In the Amount box, you have to enter the loan amount in negative as it has to be paid in future payments.
- At last, you have to click on the Save and Close button.
Addition of The Money from The Loan
- You need to click on Create and then open Journal Entry.
- You will see your liability account when you click on the Account dropdown.
- Enter the loan amount in the Credit column and then choose the appropriate asset account from the same dropdown list.
- In the Debit column, you have to enter the same amount figure.
Recording the Loan Payment
- Click on the + New button and then you have to select Check.
- Add the cheque number if you have an actual cheque. If you are using Direct Withdrawal or EFT, you need to enter Debit or EF in the Cheque field.
- You have to enter the following information in the Category Details section- liability account and payment amount, interest amount and any additional cost.
- After that Save and Close it