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How to Setup a Loan in QuickBooks

    Setup Loan in QuickBooks

    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 Loan in QuickBooks

    First, you need to set up the liability account. Using the below steps you can easily create the below steps:

    ๐Ÿ’  Go to settings options and click on Chart of Accounts
    ๐Ÿ’  Search New to start a new setup of accounts
    ๐Ÿ’  From drop-down menu search the account type listed and click Noncurrent liabilities
    ๐Ÿ’  From the drop-down check for the Detail type and select Loan Payable
    ๐Ÿ’  Give a name
    ๐Ÿ’  For Balance field, input the amount and pick the date you want to initiate tracking
    ๐Ÿ’  In the Amount, field fill the total loan amount
    ๐Ÿ’  Save and close it

    Total Time: 35 minutes

    How to Carry out Bank Transaction:

    ๐Ÿ’  See the + New icon and click on Cheque option
    ๐Ÿ’  Enter the account you want to fund in Bank account section
    ๐Ÿ’  Mention the account that you want to monitor the payments
    ๐Ÿ’  Verify the same
    ๐Ÿ’  Save and close

    How to Record the Loan Payments?

    ๐Ÿ’  Choose the bank Deposit tab in +New icon
    ๐Ÿ’  Search Deposit to box, find the appropriate box connected to the loan
    ๐Ÿ’  Now mention the necessary details mentioned on the box under the new deposit box, below fields needs to fill:
    ๐Ÿ’  Accounts – the name of the customer-related with the account
    ๐Ÿ’  Received from – customer or company name attached to the loan
    ๐Ÿ’  Memo – Embed a broad description of a loan
    ๐Ÿ’  Payment method – Finalize the mode of payment connected to the loan payment
    ๐Ÿ’  Ref no – mention the cheque number
    ๐Ÿ’  Class – Mention the facts and figures required for the class tracking
    ๐Ÿ’  Amount of the interest owed to the loan
    ๐Ÿ’  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.ย  For upcoming payments, you can set up the current asset account.

    Step to Create Loan Account in QuickBooksย 

    ๐Ÿ’  Locate the gear icon at the upper side of the screen
    ๐Ÿ’  Click on the chart of accounts
    ๐Ÿ’  Check the next button and click on Current assets tab
    ๐Ÿ’  Check detail type and click on loan to others and then select Next tab
    ๐Ÿ’  Mention the other name
    ๐Ÿ’  Click on save button

    How to Enter the Opening Balance in QuickBooks?

    ๐Ÿ’  Search the +New Icon and search for journal entry tab
    ๐Ÿ’  Select the accounting field and mention the loan holder name and total amount in the Debit box
    ๐Ÿ’  Go to second number field which is Account and Input Account Receivable
    ๐Ÿ’  Find the credit field and fill the loan amount and name in customer buttonย 

    How to Setup a Loan in QuickBooks – Video Tutorial

    How to contact?

    For more information feel free to dial 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 [email protected] and get connected with the QuickBooks support team.