How can you enter Business loan obligations in Quickbooks?

business loan
progress asked:


I just started a small business and i’m using my personal credit card for the very first equipment. i just purchased quickbooks and i want to know how to enter the loan into the systems, so that quickbooks will see it has a business loan obligations that needs to be satisfied at the end of every month until it is paid in full.
Your polite response is appreciated.
Thanks

3 Responses to “How can you enter Business loan obligations in Quickbooks?”

  1. sacha F - August 23rd, 2008

    Chick the web

  2. qb_guru_steve - August 24th, 2008

    I would setup a credit card type account in the chart of accounts. When you use your personal credit card (or cash or check for that matter) enter a credit card charge with offsets to the proper expense accounts. This will be shown on your balance sheet as a short term liability. When you have sufficient funds to repay yourself, make a payment to the credit card using your own name as the ‘Pay to the order of’.

  3. Club_qui_gon - August 24th, 2008

    Lets say you borrow $1000 and deposit that into Checking bank account.

    Select ‘Banking: Make Deposits’ and select the bank you deposited the money into.

    Where you see ‘From Account’ select ‘add new’ and add BANK LOAN as a current, other, or long term liability.

    Then select the deposit amount (in this case 1000 or whatever amount you borrowed). Then hit save and close.

    Then click the ‘Accounts’ tab and you’ll see a BANK account and a LIABILITY account with both with $1000 balances. (Or you can run reports, company and financial, balance sheet standard.)

    Now when it comes time to pay, go to checks (or bills) and select the vendor name, probably the bank. And enter the total paid, and in the accounts select THE LIABILITY and enter the total principal paid, and select INTEREST EXPENSE for the total interest paid. When you’re done, run the balance sheet report again and you’ll see how it changes.