Omg!! Thank you soooo much! You are the first person I’ve found that helped me record an equipment loan from an outside source. We did not receive any monies into our bank account for said loan but are paying off an outside survey equipment company with monthly payments. I believe I have it right in my online QB’s account! 💕💕💕
There are many answers to this question. Generally speaking when a biz owner loans funds, they don't charge themselves interest, and they'd log it as an owner draw / owner contribution. If you'd like specific advice for your situation you can schedule a 15-minute meeting: www.gentlefrog.com/meeting/
Hi Rachel, Thank you so much! this is very clear and helpful. Would you just do a JE to interest expense if the client is paying an interest only loan?
i have been looking for this issue for a while. ty so much for explaining both way of entering loans/interest in such simple and easy way. one question tho, is my accountant has been using one method of recording principle/interest, is ok to switch to the second method in the same year period?
It's totally fine to switch. At the end of the year the total interest is the same. It's like driving to the store to get ice cream, the route doesn't matter. What matters is, ice cream!
I don't have a video on this yet, I'll add it my list of video ideas. For reference, the debit is the bank account where the money went, the credit is the loan. If you need help with this you can schedule a 15-minute meeting and I can walk you through it: www.gentlefrog.com/meeting/
On the AP aging Summary my principal payments are showing as negatives even though the loan balance is correct. How do I apply those payments on the loan to eliminate the negatives on the aging report?
There's likely an issue with the workflow. Typically we don't enter loans into AP. Yes, it can be done but without seeing it, I don't know what you're trying to accomplish or where it went sideways. You can schedule a 15-minute meeting and we can take a look at it together and get it sorted out: www.gentlefrog.com/meeting/
This is incredible!! First time using online after 30 years of DT. It is a struggle! Can you tell me how to record a deposit that was put down on the purchase? Co. bought a vehicle, cost 99k put 39k down, loan is for the balance. I got how to record the vehicle and the loan, just lost how to record the deposit. Thank you for your videos!
You have a couple of options on how you can do it. Option A: Write a check/expense for the truck (choosing the Truck asset). And then add the loan, choosing the truck asset as the debit. Option B: Record the loan as the full amount and then record $39k toward the loan from a check/expense. If you need help you can schedule a 15-minute meeting and I can walk you through it: www.gentlefrog.com/meeting/
@@GentleFrog Thank you for the response!! I'm going to have to look at my schedule and have you help me cause the check was made out to the dealership and obviously, the loan is through a bank, and this is what is throwing me off in the qbo vs qbd
Question! My company has a Sqaure loan out. There was an initial amount and fee (no interest accumulated). Square takes 16% of our daily sales to make payments towards the loan. How can i record that in QB? I can make a loan payment, but the source of payment isnt a bank or even sales bc the sales dont ever make it to QB. (Square pulls before it deposits) How would you track this loan? Thanks in advance
You'll split the deposit from Square. Enter the total amount that you would have received going to income and then a negative amount going to the loan. The total should equal the deposit from Square.
@@CSC2.2024 You should be doing something similar to record Stripe fees. I assume these deposits also have fees pulled before the deposit? Here's a video on recording Stripe fees: th-cam.com/video/wfMZfT23HqA/w-d-xo.html I show how to do the split @2:19 If you have fees and a loan percentage getting pulled from the deposit you'll be recording the amount of income, the fee, and the loan payment. In the end the deposit amount will not be changed.
Rachel, if the loan was from an S-Corp and not a bank, how would the check #72 differ for the Payee field? How would the SCorp be set up in the Chart of Account as the source of the loan and for repayment?
If the loan is from an S-Corp the Payee field would be the S-Corp. The check number is optional, it's the number of the check you used to pay the loan. If you didn't use a check you wouldn't fill in that field. The S-Corp does not get set up in the Chart of Accounts. What gets set up in the Chart of Accounts is an asset account for whatever the loan is for and a liability account for the loan. You can see an example of recording an asset purchased with a loan in QBO here: th-cam.com/video/wDAuQxvUlTU/w-d-xo.html If you need any help with this schedule a 15-minute meeting and we can walk you through it: www.gentlefrog.com/meeting
Do I have to complete these steps for automatic payments as well? Or can I have it automatically be applied under the "review transactions" section and then confirm it? If that makes sense... Thanks!
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 Lon 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.
Can you make a video on how to remove an asset that is sold or traded in. For example I have a client who sold a property on the balance sheet. The loan was paid at closing and only the profit was paid to him. Any help is appreciated.
That's a great video idea! I'm definitely adding it to the list. It may take a couple weeks to get to. If you need help ASAP you can schedule a 15-minute meeting and I can walk you through it: www.gentlefrog.com/meeting/
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Absolutely amazing! You are literally answering or providing the answer for my next question each time!
I went to your blog and it was so helpful! Thank you for the great content.
You're welcome! I'm so glad you found it helpful.
Omg!! Thank you soooo much! You are the first person I’ve found that helped me record an equipment loan from an outside source. We did not receive any monies into our bank account for said loan but are paying off an outside survey equipment company with monthly payments. I believe I have it right in my online QB’s account! 💕💕💕
You're welcome! I'm glad to hear this helped you to out.
Wow! So simple to understand! Thank you!
You're welcome! I'm glad it was helpful.
Omg this is a great video! Thank you so much. Would this also apply if I am paying myself back for a loan I made to my business ?
There are many answers to this question. Generally speaking when a biz owner loans funds, they don't charge themselves interest, and they'd log it as an owner draw / owner contribution.
If you'd like specific advice for your situation you can schedule a 15-minute meeting: www.gentlefrog.com/meeting/
Hi Rachel,
Thank you so much! this is very clear and helpful.
Would you just do a JE to interest expense if the client is paying an interest only loan?
If it's an interest only loan, code the withdrawal from bank feeds to the interest expense account. Don't complicate things.
i have been looking for this issue for a while. ty so much for explaining both way of entering loans/interest in such simple and easy way. one question tho, is my accountant has been using one method of recording principle/interest, is ok to switch to the second method in the same year period?
It's totally fine to switch. At the end of the year the total interest is the same.
It's like driving to the store to get ice cream, the route doesn't matter. What matters is, ice cream!
Do you have a video that explains how to input and make payments to an EIDL loan? Confused since there was nothing purchased.... Thanks!
I don't have a video on this yet, I'll add it my list of video ideas. For reference, the debit is the bank account where the money went, the credit is the loan.
If you need help with this you can schedule a 15-minute meeting and I can walk you through it: www.gentlefrog.com/meeting/
@@GentleFrog Thank you!
On the AP aging Summary my principal payments are showing as negatives even though the loan balance is correct. How do I apply those payments on the loan to eliminate the negatives on the aging report?
There's likely an issue with the workflow. Typically we don't enter loans into AP. Yes, it can be done but without seeing it, I don't know what you're trying to accomplish or where it went sideways. You can schedule a 15-minute meeting and we can take a look at it together and get it sorted out: www.gentlefrog.com/meeting/
This is incredible!! First time using online after 30 years of DT. It is a struggle!
Can you tell me how to record a deposit that was put down on the purchase? Co. bought a vehicle, cost 99k put 39k down, loan is for the balance. I got how to record the vehicle and the loan, just lost how to record the deposit. Thank you for your videos!
You have a couple of options on how you can do it.
Option A: Write a check/expense for the truck (choosing the Truck asset). And then add the loan, choosing the truck asset as the debit.
Option B: Record the loan as the full amount and then record $39k toward the loan from a check/expense.
If you need help you can schedule a 15-minute meeting and I can walk you through it: www.gentlefrog.com/meeting/
@@GentleFrog Thank you for the response!! I'm going to have to look at my schedule and have you help me cause the check was made out to the dealership and obviously, the loan is through a bank, and this is what is throwing me off in the qbo vs qbd
Thanks Rachel!
You're welcome!
Question! My company has a Sqaure loan out. There was an initial amount and fee (no interest accumulated). Square takes 16% of our daily sales to make payments towards the loan. How can i record that in QB? I can make a loan payment, but the source of payment isnt a bank or even sales bc the sales dont ever make it to QB. (Square pulls before it deposits) How would you track this loan? Thanks in advance
You'll split the deposit from Square. Enter the total amount that you would have received going to income and then a negative amount going to the loan. The total should equal the deposit from Square.
@@GentleFrog so edit the deposit amount and add the payment amount, then split it to sales and payment?
@@CSC2.2024 You should be doing something similar to record Stripe fees. I assume these deposits also have fees pulled before the deposit? Here's a video on recording Stripe fees: th-cam.com/video/wfMZfT23HqA/w-d-xo.html I show how to do the split @2:19
If you have fees and a loan percentage getting pulled from the deposit you'll be recording the amount of income, the fee, and the loan payment. In the end the deposit amount will not be changed.
Rachel, if the loan was from an S-Corp and not a bank, how would the check #72 differ for the Payee field?
How would the SCorp be set up in the Chart of Account as the source of the loan and for repayment?
If the loan is from an S-Corp the Payee field would be the S-Corp. The check number is optional, it's the number of the check you used to pay the loan. If you didn't use a check you wouldn't fill in that field.
The S-Corp does not get set up in the Chart of Accounts. What gets set up in the Chart of Accounts is an asset account for whatever the loan is for and a liability account for the loan.
You can see an example of recording an asset purchased with a loan in QBO here: th-cam.com/video/wDAuQxvUlTU/w-d-xo.html
If you need any help with this schedule a 15-minute meeting and we can walk you through it: www.gentlefrog.com/meeting
@@GentleFrog awesome - will do. Also, thanks for the Asset link - you anticipated my next inquiry ☺️☺️☺️.
Stay Safe and Amazing.
Do I have to complete these steps for automatic payments as well? Or can I have it automatically be applied under the "review transactions" section and then confirm it? If that makes sense... Thanks!
You can choose how you want to record payments. You can record it from bank feeds or use the plus new button.
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 Lon 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.
You can schedule a 15-minute meeting and we can take a look at this together and figure out what's going on: www.gentlefrog.com/meeting/
Can you make a video on how to remove an asset that is sold or traded in. For example I have a client who sold a property on the balance sheet. The loan was paid at closing and only the profit was paid to him. Any help is appreciated.
That's a great video idea! I'm definitely adding it to the list. It may take a couple weeks to get to. If you need help ASAP you can schedule a 15-minute meeting and I can walk you through it: www.gentlefrog.com/meeting/
How would I then match this check entry to a bank transaction?
If you have the bank connected to QBO then you'll match it in the bank feeds.
Thank you for you support!!!
You're welcome!
Great👍
Thank you! I'm glad you liked it.