I need to input a loan payment received into my accounts but am unsure how to do this? I have had small regular amounts of money put into my business from family and need to include these payments to show I have had these payments given to me to help fund the business.
First set up a new Quick File bank account for the Loan. Now simply tag any loan funds received into your business account as a transfer from the new loan account set up, similarly, tag any repayments of the loan as a transfer to the loan account.
The loan account will now appear on the Balance Sheet and you will be able to see the amount outstanding and obtain a statement for the loan account.
Thank you Joe,
Will these transactions appear as a debt doing it this way? Also by tagging repayments or tagging funds into my business account show as credits and debts?
Dave
You’re welcome Dave,
That’s correct, the Loan will appear on the balance sheet as a liability, the interest will go on the P&L as an expense (if any), therefore increasing your loan balance, then any repayments made will reduce the total balance outstanding (Capital + Interest) of the loan.
Tagging repayments of loan as a transfer, will show as money out from your Business Account and money into the Loan Account, therefore reducing your loan balance.
Tagging loan funds received as a transfer, will show as money into your business account and money out of the Loan Account, therefore increasing your loan balance.