When it Comes to accounting solutions, Quickbooks is one of the best tools that comes with lots of useful features that can help you organize and handle all the operations of your business conveniently. there are multiple features and functionalities in the Quickbooks software that makes it one of the prominent accounting solutions for growing businesses. Quickbooks Loan manager feature is one of the premium features of the Quickbooks software that avails users to create loans in the Quickbooks software. the Software will manage the loan payments based on providing information about long term liability and the accounts. the tool offers you to keep a track of the principle and the interest amount automatically without using the amortization tables. however, the entries will be needed to update manually in the journals.
List of Inputs to Create Amortization Schedules
Below is the list of the things that will be required to establish the Amortization schedules in Quickbooks Desktop.
- Select Loan A/C from COA.
- Loan Amount
- Starting Date
- First Pay Date
- Payment Amount
- Escrow Payment Amount
- Payment Issue
- Escrow Payment Account from Chart of Account
- Compounding Period
- Interest Rate
- Pay Account For COA
- Interest Expense A/C for COA
- Fees/Charges A/C for COA
Steps to Setup the Quickbooks Loan Manager
- Open the Quickbooks software and choose then Loan Manager option from the banking menu.
- Now click on the “Add a Loan” option and then enter all the required details.
- now click on the drop-down list of the “Account name” and then choose the “Long-Term Liability” option from the list.
- Now select payee in the Lender drop-down list and enter the origination date of the loan.
- After this select the Week, Month, and year from the terms list and then click on next.
- Now pick one of the methods for payment and then enter the Charged interest rate.
- Now select the compounding period and then select an account from the list.
- click on interest Expense Account and then finish to complete the process.
Quick Ways to Enter or Record a Loan in Quickbooks
Create a Business Loan
- Open the Quickbooks software and click on the Gear Icon.
- Open the Company list and choose the Chart of accounts.
- Choose the New option and then change the account type based on your Loan Liability term plan.
- Click on the detail type and choose the Loan payable option.
- Now provide a name in the field and click on Save and choose to complete the process.
Provide the Opening Balance
- Click on the “+” icon and select the “Bank Deposit” option from the available list.
- Now select the account where you want to deposit the loan amount from the drop-down list.
- provide the date for deposit and then provide the account and the amount in the Account column.
- now click on Save and Close option to complete the process.
Record Loan Payment
- Open the Quickbooks software and then choose the “+” icon from the corner.
- open the vendor’s list and select check/check from the list.
- If you are sending a Printable check then enter the check number.
- For Direct Withdrawl of EFT, provide the debit or EF number in the Check/Check box.
- Now provide these account details to continue the process.
- Provide the Amount and the Details of the Liability Account.
- Details of the Expense account for deposit and interest.
- other charges and fees for the selected accounts.
- now choose Save and Close option to complete the process.
Steps to Set Up Loan Tracking in Quickbooks Desktop
In order to use the Quickbooks loan manager, make sure to add a Vendor and A/c as mentioned below:
- If you don’t have any vendor who is issuing a loan then firstly you will be needed to create a vendor that is issuing a loan for the financial institution.
- Now enter the initial loan amount as a transaction or the opening balance and then enter the origination date of the loan.
- If the payment has been made earlier then you need to manually fill the journal entries, bill, or checks.
- Now if you don’t have an account to deposit the interest and the amount then create an account.
- after that create an Escrow Account if needed.
So this is the way through which you can set up Quickbooks Loan Manager easily. Once the Account will be set up completely, you will be able to track the loan amount and interest. In case, you are trying to access a Quickbooks company file and you have encountered Quickbooks Error 6000 83 then you can use the Quickbooks file doctor tool. this error generally occurs due to the damaged Quickbooks company file.
So we have explained to you how you can set up the Quickbooks Loan Manager and how you can set up the tracking of loan payments also. However, if you have any queries about this or need some assistance to set up the Loan manager then feel free to Contact experts at Quickbooks.