Quickbooks 2019 Tutorial for Beginners - How to Correctly Record Loan Payments

This can be a confusing area for many Quickbooks Desktop users because it involves splitting the transaction and they are not quite sure where to record the total amount. This video will clarify how to record them correctly.

[ravondacole]

Hi Matt, thank you for the tutorial. What if the car got hit and the insurance totaled it and they sent a check to the bank to pay it off? How do I record it?

[wendydodge]

Hi Matt, what if I don’t receive monthly loan statements and do not know the monthly interest/principle amounts?

[morgancollins]

Should I put the interest expense under the same class as the building or should I have a class specifically for interest?

[perniculous]

First, thank you for your awesome videos! My question is: because you entered a bill with the splits, why can’t you just pay the bill like you would any other bill instead of entering the payment directly into the register? Of course when paying the bill you would just assign your own check “number” as EFT or ACH or whatever. TYIA

[lindseywhite]

We entered our loan payment and split it between Interest Expense and Principle. However, in our Chart of Accounts it does not record the principle portion paid as Owner's Equity. It decreases the loan amount, decreases the cash, and increases the interest expense. Shouldn't it also increase the Owners Equity? How do we get it to record properly?

[PBrown-fi]

Matt, I have a question. I have a loan that was taken out from my merchant account. There is not an interest rate per say but a fee. The total payment (principal and interest) is taken from my daily sales deposit with the merchant, then the merchant deposited the net of the sales into my account. I know I need to record a debit to Note Payable and Interest Expense, but I am not sure what the other side is since only the net amount was deposited. Would the credit side be to Sales? I am used to the loan amount being drawn from the bank but not the other way around where the payment is taken before the deposit. Your help would be greatly appreciated as I need to get this correct before closing my books. I look forward to your response.

[dianacomilang]

Hey Mat. Just wondering if we can do this and this is proper, since a client wants to increase the loan amount balance by the loan interest as well. I told her that we can't do such since the interest expense cannot be tracked on the loan payable but she has to create an expense account instead.
But, since she insisted, would this workaround be fine, if I create a main account called Loan (Long term liability) then 2 sub-accounts for the principal loan and the accrued interest expense so both totals up the Loan (main account) with accrued expense thus the Loan increases by the loan interest? And everytime she pays the loan, Accrued expense is debited and cash credited? Originally, an interest expense is debited for the accrued expense. What are your thoughts? Thank you.

[adrianaybar]

Do you have a video that shows how to reconcile a brokerage statement from, let’s say E*TRADE, on QuickBooks desktop pro? Thanks.