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