How to Enter a Loan in Quickbooks
Keep track of your business loan in QuickBooks.
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Some businesses occasionally need to borrow money to fund capital investments such as new premises, equipment or product research and development. When your company borrows money, you should record the loan as a liability in your accounts and track each loan payment that you make to reduce the liability. With QuickBooks business accounting software you can set up a liability account for a short-term or long-term loan to record and track the loan deposit amount and all loan repayments.

Create a Liability Loan Account
1. Launch QuickBooks. Click the "Lists" tab in the top menu and then click "Chart of Accounts" in the context menu.
2. Click the "Account" button below the list of accounts. Select "New" from the pull-down menu.
3. Select "Company," "Lists" and then "Chart of Accounts."
4. Right-click on any location on the list and then select "New" from the context menu. Select "Other" from the accounts list and then lick the down-arrow button to expand the list of available account types.
5. Click "Other Current Liability" for short-term loans repayable over one year or less or select "Long-term liability" for loans repayable over a longer period. Click the "Continue" button.
6. Enter a name and reference number for the accounts in the applicable fields. Leave the balance at zero.
7. Click the "Save and Close" button.
Deposit the Loan Amount
1. Click "Banking" in the main menu and then select "Make Deposits" in the context menu. If the Payments to Deposit window opens, click the "Cancel" button to close the window.
2. Select the deposit account for the loan in the Make Deposits window.
3. Enter the name of the liability account you created to track the loan in the field in the "From Account" column.
4. Type the loan amount in the field in the "Amount" column.
5. Click the "Save" button.
Recording Loan Payments
1. Click "Banking" in the main menu and then select "Write Checks" in the context menu.
2. Enter the payee name and repayment amount in the applicable fields in the Write Checks window.
3. Assign the interest element of the loan repayment to your preferred expense account in the detail area of the Write Checks window. Assign the rest of the payment, also known as the principal, to the liability account you created to track the loan.
4. Click the "Edit" button and then select the "Memorize Check" option if you want QuickBooks to enter this payment automatically at regular intervals and issue a payment reminder.
5. Click the "Save and Close" button to save the transaction and exit the window.
Tip
Enter loan payments regularly to ensure that your company's accounts are up to date at the end of each fiscal period.
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References (3)
QuickBooks: Set Up a Liability Account For a Loan
QuickBooks: Deposit Loan Money
QuickBooks: Record a Loan Payment
Resources (1)
QuickBooks: Support
About the Author
Adrian Grahams began writing professionally in 1989 after training as a newspaper reporter. His work has been published online and in various newspapers, including "The Cornish Times" and "The Sunday Independent." Grahams specializes in technology and communications. He holds a Bachelor of Science, postgraduate diplomas in journalism and website design and is studying for an MBA. If you want any help in learning How To Record Loan Payment In QuickBooks then you just need to give us a call at our Quickbooks support phone number and we will surely assist you.