How Do I Categorize A Business Loan In Quickbooks?
I was recently approved for a $5,880 loan for my company to be used as working capital. How should I categorize this in Quickbooks? When I go to show the deposit into the company bank account, how does that get categorized as money from a loan and not as income?
Go to chart of accounts and open a long term liability account for the amount borrowed. Each month reconcile this account just as you do your bank account, apply interest and payments so you balance goes down and the business gets credit for the interest paid tax wise.
Can’t remember exactly the deposit step, because I don’t have quickbooks on this computer, but I think after that you can deposit it from the deposit menu or you may have to do a general journal entry for the transfer.