how to track loans with QuickBooks loan manager

How to Track Loan with the help of QuickBooks Loan Manager

Everybody from small to medium-sized businesses depends on QuickBooks as it has many features and advanced tools. One of the features is known as a loan manager that helps to calculate interest and payment schedules. Learn how to track your previous and current loans with the help of QuickBooks loan manager.

Features of QuickBooks Loan Manager

QuickBooks Desktop loan manager tracks unpaid loans and changes the installments if any are missed. Below are some very effective features mentioned.

  • This tool gives the complete loan amount into interest, and principal, and helps in timely loan repayment.
  • It allows you to add and remove the loans that need to be tracked and also need to set up the loan payment for them.
  • Any repayment can be viewed through this tool and you can analyze the loans.

It also helps to amortize the schedule at the current rate provided by the user and you don’t have to work each month.

  • It can be also set up by the amortization record based on the below records
  • Loan taken date
  • Amount of loan
  • Payment amount
  • Payment issue
  • The loan amount is taken from the chart of accounts
  • First loan installment date
  • Escrow payment amount
  • Rate of interest on the loan
  • Compounding period
  • Payment A/C chosen from COA
  • Fees or Charges account chosen from COA.

How to Track Loans with the help of QuickBooks Loan Manager

Follow the below steps to learn how to track new and existing loans, and make repayments with the help of QuickBooks loan manager.

Step 1: Set up the Escrow Account

The escrow is a small amount of loan that is retained by the third-party account till the time the terms of the loan are met. The Escrow account is similar to the QuickBooks Asset Account which monitors the Escrow portion of the loan payment.

  • List menu>> Explore chart of account
  • Select new after clicking on the accounts drop-down
  • Open the other account type
  • Select the other current asset
  • Continue and mention the account name
  • Save and close.

Step 2: Set up a Liability Account

  • List menu>>Chart of accounts
  • Select a new tab after clicking on the drop-down menu
  • Loan>>select continue tab
  • Mention the account name and opening balance
  • Click ok, save it, and close.

Step 3: Create a Vendor

  • Vendor menu>> Click on vendor centers and select “New vendor”
  • Mention all the required details and click OK.

Step 4: Set up the Expense Account

  • To keep track of the interest payments or fees and chars
  • Go to Lists >> Charts of accounts
  • Click on the Accounts drop-down and select New
  • After this tap on Expense and choose to continue
  • Fill in the account name for the interest payments or charges
  • Click on Save and close.

Still, have questions? Simply connect with the QuickBooks support quickly. Just get all your queries and issues resolved through the experts on the topic of QuickBooks loan manager. QuickBooks experts are trained, knowledgeable, and have years of experience in the same domain.

Frequently Asked Questions

Why should we Use the QuickBooks Loan Manager?

QuickBooks Desktop loan manager allows you to determine the bill and interest schedules. You can track your current and new loans, make repayments, and run various “what-if” scenarios to compare different loan choices.

Where can you find a Loan Manager in QuickBooks?

To access this feature, you need to simply go to the “Banking” option. Using the drop-down menu that is located on the top and using that scroll down and select the “Loan Manager: option which is then loan when you select the same.

What are the steps involved to record and track the loans using the Loan Manager?

Initially, go to the Banking section and then select the option “Loan Manager”. Next, click on the Add a Loan option and then enter all related account information for the loan such as account name, lender, origination date, original amount, terms, and more.
After that, hit the “Next” button and then enter the payment information, and again hit the Next button. Now, enter the interest information for the loan. Once you’re done with then click on the Finish button.

What type of account is a Loan considered in QuickBooks?

Users have to set up a liability account in order to record the load and its related payments.

How does a Loan Affect your Balance Sheet?

Loans on the balance sheet are classified as liabilities. When time goes by and the company begins raising its debt by daily loan payments, the loan account decreases correspondingly with the assets used to make the loan payments.

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