How to Record Loan Payments in Quickbooks Online

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So you have a loan for your business and you are wondering how to record loan payments in Quickbooks Online? These loans could be an SBA loan or just a small business loan from a family member or a bank and now you need to know how to properly record a payment that details the principal and interest amounts paid for the loan in QuickBooks Online. In today's video, we are going to share with you a Quickbooks Tutorial on how to record loan payments right inside of Quickbooks Online software account. Stay tuned for the Quickbooks online tutorial so you can get a better understanding on how to do this for your small business! This video is brought to you by Stephanie Thacker, Founder & CEO of Steadfast Bookkeeping Co.
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• How to Record Loan Pay...

[@Millennialgal]

You've been a total life-saver! Thank you for making these videos! :)

[@jenmusgrave2524]

Thank you so much! This is exactly what I needed! Explained very clearly and I really appreciate the visual on screen step by step example.

[@NegociosconMaria]

Thanks I do appreciate your videos, just discovered your channel! Congratulations!’

[@jimmypitillo8961]

you are doing a hell of a job, and very likable to watch and informative

[@smpreston34]

This was so helpful thanks so much for doing these videos!!

[@sambutarbutar9624]

Such a clear explanation! Thank you!!

[@laurajohnson8915]

Thank you for the simple and clear explanation! Just subscribed to your channel!!

[@GPAM87]

I learn something new today!!! Yeahhh :) Very Helpful, you gain a new follower.

[@colinsaunders171]

Very helpful! Thank you! Appreciate you!

[@nicoledossous9500]

Extremely helpful! Thank you!

[@thomaslemmenes909]

Great information and explained so clearly!

[@paulatete1]

thank you so much for taking your time to teach us

[@buffgiftednakedpodcast184]

Sooo helpful!! Thank you for this. You saved me so much time.

[@bridgettestokesconner9401]

Thank you 🙏🏽 for your help!

[@purplestarphotography]

This was very helpful. Thank you!

[@LucineaFagundesDosSantos]

Thank you Stephanie, great explanation.

[@momonfire1050]

Thank you! so helpful.

[@henryjordan2537]

Excellent video. Thanks

[@bryanc8684]

This also should explain when is not from the bank loan, because also there are other companies that lend money and as a suggestion, please do that to. Thank you very nice and clear explanation.

[@taramobayen8389]

love this thank you

[@msbellamy07]

Great video!

[@bardotransformation]

Very helpful!!

[@juliemarymantos6349]

Thank you so much! You are God sent. :)

[@juliemarymantos6349]

Stephanie, your FB Group is in private. I cannot join in.

[@stepheniebennett9364]

Thank You!

[@eved.7038]

This was so helpful. Can you explain how to record a down payment you gave when buying a vehicle or property?

[@mariocampos9254]

Very helpful

[@nathaliecolina7636]

Thanks for your help about this topic. I will folllow you.

[@eclipsegypsy10]

Thank you for taking the time to explain step by step the process of recording a payment. I am facing the challenge of recording a SBA payment made from a LLC account from a loan for a Sole Proprietorship that was reconstructed to the LLC. The loan is showing on the books for the Sole Proprietorship and I am not sure how to apply my payments. I am still researching.

[@bookkeepo]

thank you,

[@muratuzer6772]

Thank you for your video. I do have one question though (and maybe I am making a thought mistake). Your loan account does include principal plus interest. You only record principal payments though. This way your loan account does not balance out when you make your last loan payment. The difference should be the amount in interest you paid over the years. How do you balance that? Am I thinking wrong?

[@wendyremillard1836]

This was very helpful. Your presentation is clear and I felt there was all the information I needed. I was wondering if you can tell me what the entry would be after a loan is paid off early and there's a small balance left behind in the account.

[@Bori5646]

If it was paid in full the balance should be zero. If there's balance left after is paid off it could mean that there's an entry error somewhere. Verify your entries with the monthly statements

[@justinescully1237]

Do you have a tutorial on how to set up receiving payments if you are the lender?

[@jasminpatel5050]

excellent

[@customerservice3561]

Customer Service 49 seconds ago Thank you so much for all your videos! Its very helpful!! Do you have a video of how to record a loan that didn't go into my bank account but went straight to from the lender to my vendor? Please advise of how to do this. Thank you!!

[@kimbaking5816]

Excellent explanation this was what i was looking for, could you help me how to record a guarantee payments to owners in QB, I'm very new in this software. thank you.

[@YouTuber-zc5js]

Hi, can you help detail how to record interest if it is not included in your monthly debit but instead the bank charges it but adds to the loan balance that QBO doesn't see? so the monthly cost is purely just deducting the full amount of the loan but on the same day interested is also added so it puts the balance up a bit more. Thanks :)

[@ashleycarter7324]

What do you do with the loan payment every month that came over in the bank transactions

[@scottsmith4618]

Great video! I have purchased a business and the owner is financing the purchase price. It is a zero percent interest loan. Would I still set this up as a debit and credit like you did in the video? I was not sure since I never received any money from him.

[@akuchampaneri1368]

i have the loan added under long term liability, do i need to create an assets account for the loan for the vehicles.

[@katiepalladino7505]

I don't have a payment schedule and just receive an informational letter at the beginning of the year showing total principal and interest pd for the previous year, as well as the principal balance as of 12/31. For interest, would it be a journal entry once a year, using the Interest Paid amount to show the loan balance increasing and the Interest Expense account increasing? Thanks for your help!

[@thaliamancera6336]

If the loan is for a work truck (chipper), would it be the same process? Or would I but the entire payment as a loan payment since its all deductible?

[@israelalvarado9720]

question, do you actually need to make a check and send it to them? or does quickbook send the money to the lender automatically and if so, how does it do that? i assume because it was in your bankfeed the lender already has authorization to withdraw the funds, and if so, what is the process for the lender or any vendor to go to the bookkeeper's client account and withdraw?.

[@myfloridahomeservices1883]

How do I account for interest expense when recording my bank feed loan payment as a transfer to a long term liability account( car loan)? There is no split function on the "record as transfer" option on bank feed transactions.

[@reaganhernandez5861]

What if my client had the car loan for a few years already, and im just now doing his books.. do i Record the Origanl cost or the amont he has to pay as of today

[@hccproadvisors]

How do you categorize the Outflow of money from a loan made to a third party in quickbooks?

[@davidcowden8562]

Hi Stephanie. I have my truck listed as a fixed asset in QBOL. How do I record the payments the company makes for that? Thank you!!

[@MrJuanjobasanez]

Thank you for your videos, They are usefull. My company sells software. And sometimes I offer my customers to pay a License they buy from me, in 24 months. How can I show that correctly in quickbooks? I want to reflect the entire sale when it happens.

[@user-yu7bg9su6h]

in the same transaction for vehicle loan it keeps adding bank payment in fixed asset as well why?

[@HPKPerformance]

Love the videos, you should really invest in a a microphone. It will make the audio so much better an clear!

[@fvidal007]

Can someone help me. When i create the journal entry, do i include the insterest im paying for the vehicle (in the 5 yr loan) or just the cost of vehicle without insterest?

[@svetlanaciesielski7109]

I got a stripe loan to my checking account and I just transfer to my loan account, why do I need the JE? thank you

[@snookermaine3948]

Do you take on clients?

[@romigaddy3555]

Thanks you for this video. What if you have multiple loans. how do you differentiate which loan the payment is going to?

[@stephanie-thacker]

If you have multiple loans, you will want to set each loan up as a separate liability account and then apply the principal payment to that account. I hope that helps!

[@roulezcool5367]

For my loan the total monthly payment is recorded at the bank as a repayment. Monthly interest is then added to the balance as a separate transaction. Still trying to work out how to record this

[@rubyleyva3365]

What if we got a loan to our personal name rather than the Business? Can we still record that as a business loan?

[@coachinnosanta5071]

Wow

[@emilyshirk17]

Hi Stephanie! I would love to join your FB group but the link is showing the group is hidden and cant be joined. Is there a way we can still join?

[@traceyhenry9530]

Our EIDL had $100 automatically taken out before it was dispersed to cover a lien fee. How do I account for that amount?

[@danaruffolo9966]

thank you for the video, but how do you reconcile, record daily interest changes. my end balance of the loan and statement are different

[@stephanie-thacker]

If you receive a monthly statement, it should match up with your monthly payment. I'd suggest reconciling each month so if there is a discrepancy, you know right where it is.

[@Karen-fc2gr]

i have obtained a loan from my POS provider it has a fixed rate, i think i have an idea of how to enter it but i want to make sure i am doing it correctly can you clarify for me.

[@jerinbrooks8190]

I dont have the "accounting" option on my quickbooks

[@israelalvarado9720]

hello, why would the loan for 40K be on credit? and not on debits?. thank you

[@ConcordGSTroop]

the link or the site does not work

[@valatamericaneliteroofing]

This is great! I just took over bookkeeping and I have a question about this. I make this loan payment from my Checking account, and the payment shows up on that account the following day. I also have the Loan account linked in Quickbooks, so the same expense shows up on it. 1. Which account will receive the split and 2. What do I do with the other account? I appreciate the feedback!

[@SteadfastBookkeeping]

If you are manually entering the loan payment, then when it shows up in your bank feed, you should be able to just match it to the manually entered expense or bill payment (depending how you entered it). Hope that helps!

[@valatamericaneliteroofing]

@@SteadfastBookkeeping great, thank you!

[@h-conllc5284]

What if you are just starting QuickBooks and are trying to enter an existing asset and loan? I went in and made a journal entry for the date of purchase and amount, but how do I record the payments made thus far?

[@reaganhernandez5861]

that's a great question that's what I need to know

[@kimb2862]

How do I record itemized spending under a "loan"? Like with an SBA loan...I need to show what the money was spent on. How do I do that without decreasing the loan amount as we haven't started paying it off yet. I was making Journal entries to show that, but now see it was decreasing the loan amount. It shows a 0.00 balance in my Balance Sheet. The Balance is 0.00 for what we have left to spend, but not for what we owe.

[@Bori5646]

When you entered the initial loan balance you also increased your checking or whatever account that money was deposited into. When you spend that money you will be decreasing your checking account and not your loan

[@gilbertmadrid1417]

get to the point a little faster. I just need the info

[@msbellamy07]

Ugh I wish I could talk to you right now. I followed the video however I paid a loan completely off in one payment. I'm trying to link that transaction to show the loan is paid but on my balance sheet the transaction keeps adding to liabilities instead of deducting 🤦🏾‍♀️🙄🙄

[@stephanie-thacker]

Are you using QBO?

[@msbellamy07]

@@stephanie-thacker yes I am

[@stephanie-thacker]

@@msbellamy07 You may want to make sure you have the right amounts in the debit/credit columns if you did a journal entry. Otherwise, if you matched a bank transaction, just make sure you are categorizing the payment to the liability account and it will decrease that account.

[@deanscharacters]

Less conversation more learning w t h

[@PieStarBakery]

A conversation is a dialogue between two or more people.

[@asadrizwan4043]

3:05 Thank me later!

[@danielcedillo9037]

Great video...Thanks so much for your help... do you want to work for me?...jk....

[@unclejimbog]

This video could have been half the length of time

[@user-yu7bg9su6h]

i follow all your Videos they are very knowledgeable. However, I took out a loan from Ford 34000, i entered as ford-150 long term liability and Ford-150 as a Fixed asset category. In Journal I did Dr FA and Cr Loan acc, My Loan Liability register is reducing every month by 654but when i see my FA Ford-150 Acc Register in the Chart of Acc register it is increasing, Why? FA value cannot increase how to fix it please Suggest. in my Fixed asset register for ford its value is now $44000

[@user-kn2pp4bv6b]

So helpful!!! Thank you!!

[@rasheedmoss7847]

Great video!