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Ever thought of, tracking down your loan with Loan Manager in QuickBooks Desktop? Yes, this great feature of QuickBooks facilitates you with high up gradation in managing accounts of your QuickBooks Company File.

Loan Manager in QuickBooks allows you to calculate interest and schedule the payment. Thus, before moving ahead let us get started with setting up of QuickBooks Loan Manager.

Method 1: How to set up the accounts for QuickBooks Loan Manager?

Verify for the following accounts:

To set up a liability account

Setting up of a liability account first is essential, since you are choosing the account later on when you track your loan.

  • In the Lists menu, choose Chart of Accounts.
  • Click on to the Account menu, and then select New.
  • Click on to the Loan, and then select Continue.
  • Type the Account Name, and then choose Enter Opening Balance.
  • Click on OK, and then select Save & Close.

To create a vendor

  • In the Vendors menu, choose Vendor Center.
  • Click on New Vendor.
  • Type the vendor’s name of the bank or the institution issuing a loan.
  • Fulfill all required information.
  • Click on OK.

To set up an expense account

  • In the Lists menu, choose Chart of Accounts.
  • Click on to the Account dropdown, and then click on New.
  • Choose Expense, and then Continue.
  • Type the account name for interest payments or fees and charges.
  • Click on Save & Close.

Method 2: How to record and track your loans

What is the working of QuickBooks Loan Manager?

When loan is paid in regular installments; which includes both compound interest and principal amount.

  • In the Banking menu, choose Loan Manager.
  • Click on Add Loan.
  • Type the account information of the loan and choose next.
    • Account Name: Account name is the Loan Account that you had earlier set up.
    • Lender: Vendor to which payments are made.
    • Origination Date: Date from which the loan will commence.
    • Original Amount: Full first amount of the loan.
    • Term: Time it will take to repay the loan complete, in weeks, months or years.
  • Type the information of loan and choose next
    • Choose due date of next payment
    • Payment amount: is the amount paid at each interval
    • Next payment number: If earlier payments are made
    • Choose duration, prior to how many days payment will be due
  • Type interest information of Loan and click on Finish
    • Interest rate
    • Compounding period
    • Payment Account
    • Interest Expense Account
    • Charges Expense account
  • Review the loan information

In this article QuickBooks Support USA will assist you all through the tour of managing loan with QuickBooks Loan Manager. Do not pause! Our technical expertise are here to help you all the way through their support; you can also drop us a mail on our team will surely revert you back within 24 hrs.

Post Author: qbooks247

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