QuickBooks is always being an excellent accounting software for the users. It has a lot of features which can’t be ignored as these features are very helpful. One of the features is Setting up a loan in QuickBooks. The loan is some amount which anyone borrows from someone or bank for future investments. If you want to record the process this complete process needs to be entered in QuickBooks. Today’s topic will show you how to set up the loan in QuickBooks.
Steps to Setting up the Loan in QuickBooks
First, you need to set up the liability account. Using the below steps you can easily create the below steps:
- Go to settings options and click on Chart of Accounts
- Search New to start a new setup of accounts
- From drop-down menu search the account type listed and click Noncurrent liabilities
- From the drop-down check for the Detail type and select Loan Payable
- Give a name
- For Balance field, input the amount and pick the date you want to initiate tracking
- In the Amount, field fill the total loan amount
- Save and close it
How to Carry out Bank transaction:
- See the + New icon and click on Cheque option
- Enter the account you want to fund in Bank account section
- Mention the account that you want to monitor the payments
- Verify the same
- Save and close
How to record the loan payments?
- Choose the bank Deposit tab in +New icon
- Search Deposit to box, find the appropriate box connected to the loan
- Now mention the necessary details mentioned on the box under the new deposit box, below fields needs to fill:
- Accounts – the name of the customer-related with the account
- Received from – customer or company name attached to the loan
- Memo – Embed a broad description of a loan
- Payment method – Finalize the mode of payment connected to the loan payment
- Ref no – mention the cheque number
- Class – Mention the facts and figures required for the class tracking
- Amount of the interest owed to the loan
- Check the complete information entered and save
Steps to Close an Open Invoice
To process the one more current account such as receivable for the loan funds needs to be paid in the current year. For upcoming payments, you can set up the current asset account.
Step to create Loan Account
- Locate the gear icon at the upper side of the screen
- Click on the chart of accounts
- Check the next button and click on Current assets tab
- Check detail type and click on loan to others and then select Next tab
- Mention the other name
- Click on save button
How to enter the opening balance in QuickBooks?
- Search the +New Icon and search for journal entry tab
- Select the accounting field and mention the loan holder name and total amount in the Debit box
- Go to second number field which is Account and Input Account Receivable
- Find the credit field and fill the loan amount and name in customer button
How to contact?
For more information feel free to dial +1844-313-4856 and get the help from QuickBooks Support team instantly. QuickBooks Technicians are polite, professional, and have many years of experience in the same domain. These qualities of the experts make them a perfect technician and they can help the customer with full support. QuickBooks helpdesk is available 24*7 to support you always. You can also email at firstname.lastname@example.org and get connected with the QuickBooks support team.