For starting up the business, you just need to borrow money and for this purpose, you can take a loan from somewhere but after the completion of the loan, You have to set up a liability account for recording the loan. You can record all these transactions anywhere. Quickbooks allows you to set up a load in Quickbooks.
Quickbooks is exclusive and acts as a safeguarding software that helps to keep your data securely, safely, and privately. It provides a proper book where you record all transactions regarding payment of liabilities, paying back off the loan at a time. Although you also need a reminder to remind you of the date and time of interest of loan payment.
ADVANTAGES OF SET UP A LOAN IN QUICKBOOKS ONLINE
- Quickbooks track where your information has reached and by what time and by whom received it and maintain the record of it.
- If your transactions remain anywhere so you can check the records in Quickbooks where the transaction is.
- It is an unlimited recording software in which you can record long time transactions for any large amount or any small amount. That’s why it is known as short term or long term recording software.
- Because it maintains the holding of the smallest as well as the largest unit along with it is capable of keeping tracking and maintaining maximum and minimum time limits.
- It helps to maintain a liability account for tracking the loan.
- Whatever loan you take, you can put money wherever you want and use that money to purchase something.
- In simple words, this means no matter how you use this money still Quickbooks maintain and track all the records.
STEPS TO SET UP A LOAN IN QUICKBOOKS ONLINE
Here we discuss how to Quickbooks set up a loan in QuickBooks. There are three steps to set up a loan in Quickbooks online :
- To record a loan, you must need a liability account in QuickBooks.
- To record a loan amount.
- The first case, if you want to transfer money from a loan into a bank account.
- In the second case, if you want to use loan money for something else.
- To repay the loan.
To Record A Loan, You Must Need A Liability Account In Quickbooks
- Choose a chart of accounts from settings.
- You have to make a new account and to make, select for new.
- From the drop-down menu, select what type of account you want. After this, if you want to end the loan in the current financial year so you have to choose current liabilities instead of Non-Current liabilities.
- From the drop-down menu, choose the loan payable for what type of detail given to you.
- Give the proper name to your new account.
- After giving name, immediately if you want to track all the information so you have to enter the amount in the account and enter the date when you start tracking.
- Click on save and close it.
To Record A Loan Payment
Now you have to record a loan payment in two ways:
- In the first case, if you want to transfer money from a loan into a bank account.
- Go to make a new account and choose a journal entry.
- From the drop-down you have just created an account, go and select for the liability account.
- From the Account dropdown, select the bank account and enter the loan amount in the debit section.
- In the second case, if you want to use loan money in something else.
In case, if you don’t put money in the bank and use it in something else like you purchase something so you just need an accountant for making records like this.
To Repay The Loan
- Go to make a new account and choose what type of cheque you want and then select.
- If you directly send a real cheque so you have to add a cheque number in case if you are using an ETF or direct withdrawal so you must enter the ETF in the cheque section.
- Then write the category details from the category drop-down menu and select the liabilities account and enter the payment.
- Before entering the interest amount, from the category drop down choose the expense account for the interest.
- From the category drop down, Choose the relevant account and add any extra fees.
- Click on save and close it.
I hope this information will help you to set up a loan in Quickbooks but still, you are facing some problems so you can contact Quickbooks Supporters.