How to setup a Loan in QuickBooks

Do you need to set up a Loan in QuickBooks?

The first step to setting up your loan is thinking about exactly what happened…

Did you just get the loan or have you had it for years?

In this video, I'll walk you through these steps to set up your Loan in QuickBooks.

Would you like my step-by-step PDF guide to closing out your books each month?

➡️ Steps to setup a Loan in QuickBooks

Go up to “Lists”
“Chart of Accounts”
Setup your Main Category
Then set up subcategories
Go down to “Account”
Click “New”
Choose “Loan”
Click “Continue”
“Account Name”
**Checkmark “Subaccount of ____________” If it’s a subaccount

“Description”
“Click Enter Opening Balance”
“Enter Opening Balance: Other Current Liability Account” screen will show
**If you have a loan for a long time & you don’t know what the original purchase price

“Opening Balance _____ as of _______ “
“Click “OK”

Click “Save & Close”


➡️ Recording All Transactions at Once

Go up to “Company”
“Make General Journal Entries…”
“Assigning Numbers to Journal Entries”
Click “OK”
Choose “Account” (1st Line: Bank Account)
“Credit” Amount
“Memo”
“Account” (2nd Line: “Vehicle”)
“Debit” Amount
“Memo”
“Account” (3rd Line: “Loan”)
“Credit” amount
“Memo”
Click “Save & Close”


➡️ Writing Check

Go up to “Banking”
“Write Checks”
“Pay to order of”
“Name not found” screen will show
“Quick Add”
“Select Name Type” screen will show
“Vendor”
“OK”
“Amount”
Under “Expenses” tab, add “Account”
“Amount”
Click “Save & Close”

Need to learn more areas of QuickBooks? Join us on our next workshop to learn how to design QuickBooks for your specific business...

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Timestamps:

0:00 - Intro
0:22 - Factors to consider
0:51 - how to enter loan in QuickBooks
3:00 - Record all transactions at once (Journal Entry)
5:31 - Checking Balance Sheet/Bank Account
6:10 - Final Thoughts

I’d love to connect with you 👇

#CandusKampfer

[chelesjourney]

Candus ... Once again, I am new to QuickBooks and you have saved the day again!!!! YOU ROCK!!!!

[teresatereeroseg]

Thank you. You teach the way I learn! I might be a good part of your 3 million viewers. I consult your Qkbks tutorials " a lot"

[dccones]

I sold my business to an employee and holding the loan with interest. Would you enter the same way?

[erikpacheco]

Hello, How do I enter info for a new truck that was paid in full at time of purchase?

[nabeelnawaz]

Hello Candus thanks for sharing this valuable info. Is there any video you can share how to record a lease expense. If a person paid $3000 in advance for lease asset for total value of $10, 000 and needs to pay $250 per month. this equipment needs to hand over back to seller after 5 years. how it can be recorded.
Any thought on this. thanks in advance

[lpmtransportationllc]

how to register loans to employees? Thank yo

[oscarperla]

Hi Candus, just a quick question, instead of a truck I would like to set up the company itself, since the owner bought the company to pay as a loan, what would be the name of the account?

[tammieq]

Can you show example of down payment on a mortgage- I have a client that hands me down payment info but settlement statement about two months after the fact.

[ktrwarnol]

I have a car and bank loan before I started quickbooks. How can I input info? Do I have to start with the balance due from Dec 31st of prior year?

[karinhazel]

Question: I have a client that I'm trying to clean up their QB. there are transactions showing him making payments to a particular person. he told me to classify them as a loan payment. however the loan amount he is paying off was never entered into qb. so if I enter the beginning balance won't it affect the balance as that money has already been taken out ? how would you recommend I fix this?

[happytax]

This is related to a loan for a car, how will it be for a personal loan. I mean the the owner of the company ask for money to a person that he knows and now is paying it little by little. And how will it be once you buy a car but paid for it fully.
Thank you I love your videos

[rocimoranchel]

Hi, I love you videos! I have a question hopefully you can help me. We recently purchased a company vehicle outright, so no hire purchase agreement/finance. I am just wondering if I still need to set up any additional accounts/journal entries/tangible assets etc. At the moment I just made a check payable to the vendor and a I chose fixed assets as the account.
Any advice would be appreciated thanks.

[hillarygibson]

Hi Candus - What if the original loan amount wasn't the amount deposited? Closing cost, fees, etc...giving me a significant difference which is now throwing off my loan setup "amortization schedule"-Please help!! Thanks!!

[alysa]

If the company gives a loan that is charging interest is it set up the same way? If not how do I set that up?

[Flat_Earth_]

Love the way you explain things. My question is I sell used cars and finance them. How do I do this in QB we currently have 2015 but it doesn't seem to handle financing. I'm willing to update if that's what I need to do. Thanks

[jenacousineau]

How do enter mortgage payments for home based business? Do I set it up as a loan?

[lisawedel]

Hi Candus, have you ever done a video about setting up an escrow account? I also have questions about how to breakdown a payment to an escrow account.

[wilsonlinares]

what about the interest? the payments will add more then the loan at the end

[mdvnaples]

Hello Candus..I just came across your video. I do have a question, please. How do you set up a loan if you've had it for a while and just got the Quickbooks program?

[learningwithmrandmrsjames]

Can you make a video with 401 k employer contributions in quickbook desktop but client is wit different payroll company and dnt use quickbook to run payroll