How To Enter Loan In Quickbooks Register

To book the loan interest first make the payment in quickbooks to the loan.

How to enter loan in quickbooks register. There are the short term or the other current as quickbooks calls them and you ll see several of those over here. Open up the chart of accounts by using the lists tab on the top menu bar. Enter line one to the loan account being paid this is the principal enter line two to an interest expense account this is the interest save down the check. Enter the loan amount in the credits column. But for now let s go ahead and get into setting up loans.

Proceed to the account register below. Deposit the loan amount to deposit the loan amount click banking in the main menu and then select make deposits in the context menu. When the new account window opens look under the assets and liabilities section click on loan and click continue. Whenever you record expenses or purchases you can select your bank account as the payment account. Enter the same loan amount in the debits column.

Open the write check window ctrl w enter the bank name date and amount. Once we re done with that we ll go in and look at the loan manager that quickbooks has. This is section one. We can enter the transaction into quickboosk check register by using the split function and charging the equipment account for the full purchase price and charging a loan payable for the difference between the purchase price and amount paid. If the payments to deposit window opens click the cancel.

One line is the principal payment applied towards the long term liability to slowly pay down the loan and the second is the interest payment booked under an interest expense account. When the check is written in quickbooks each month this is when i would use a quickbooks memorized transaction to save time by the way you split the transaction into three separate lines. Remember in accounting there are two types of loans. On the second line select the appropriate bank account from the account dropdown. Enter bank transactions into the quickbooks check register to enter a new transaction click on the drop down menu immediately beneath column headers in the check register and select either check or deposit.

For more accounting information see accounting website.