Hey everyone!! Have you ever think about what is QuickBooks loan manager, its importance and many more things? If your answer is YES then don’t about it. Here in this guide, we give you complete and excellent information or knowledge about this topic.
The best QuickBooks loan manager is the most useful tool that always allows you to easily track loans, payments with increased interest and also principal installments for an appropriate period. It also enables you to simply create installments for either the standard booked sum or new and extra installments. With this, you can also easily create a payment for the regularly scheduled amount due or new and additional payment.
Note:- This amazing QuickBooks loan manager tool always reminds you to pay your principal amount and interest on a timely basis.
Importance of the Best QuickBooks Loan Manager
QuickBooks loan manager gives the best option of submitting a loan amount to the concerned authority on time, by changing the amount into principal amount and interest.
A loan, essentially, consists of principal amount and interest, and the wonderful tool QuickBooks loan manager always takes care of this. And when you just take a loan from a bank, then the bank simply tells you that installment of how much amount you would have to simply give.
The best QuickBooks loan manager simply calculates the amortization schedule which is just related to the long-term business loan. It also calculates it at a new, current rate and always tells you how much you still have to pay.
Furthermore, you will always tension-free, as you don’t have to work to see every amortization schedule.
How to Easily Set Up a Loan in QuickBooks Software?
- Firstly, you have to simply choose a banking, loan manager from the menu.
- After that, just click on the add a loan and simply fill in all the required details.
- And in this step, from the account name drop-down list, simply choose the long-term liability account for the loan.
- Now, from the lender drop-down list, just select the payee.
- And then simply fill up the loan origination date.
- In this easy step, from the terms list, you have to simply choose the weeks, months, or years and after that just click on the next option.
- After that, simply choose the payment method and then just fill in the interest rate.
- And then, just select the compounding period.
- Now, from the payment account list, you have to simply choose the bank account.
- And finally, just choose the interest expense account. After doing this simply click on the finish button. And now your process is just complete.
How to Simply Enter a Loan or Record a Loan in QuickBooks Software?
Step One:- Build a Business Loan
- In the first step, simply choose the gear icon.
- After that, just select the chart of accountants from the company list.
- And then, just click on the new and then simply change the account type to long-term liabilities or other current liabilities basis on your loan type.
- After doing the last step, simply go to the detail type and just change it to loan payable.
- And now, simply enter the name of the account and then just click on the save and close button.
Step 2: Just Enter an Opening Balance
- First of all, just select the plus icon (+) and then simply choose the bank deposit from the other list.
- And then, simply go to the drop-down list and then just select the account where you just want to deposit the loan funds.
- After this, you have to just enter the deposit date.
- Now, under the account column, you have to simply enter the loan payable account created along with the amount.
- And finally, just click on the save and close button.
Step 3: Simply Record a Loan Payment
- Doing this the first step is very easy, simply choose the plus icon (+).
- And then, just select the check/check from the vendor list.
- After that, you have to simply add the check number if you just send an original check.
- And in case, you do a direct withdrawal of EFT, so that case, simply enter the debit or EF in the check/check # box.
- After doing the previous step, you have to just enter the following information in the account details:-
- In the first line: Liability account for the loan and the total amount of payment.
- And in the second line: Expense account for the interest and the complete amount.
- In the succeeding lines: Any extra fees along with the proper or appropriate accounts.
- And at last, simply click on the save and close button.
How to Prepare Loan Tracking in the Best QuickBooks Loan Manager?
So before starting to use the amazing and the best loan manager in QuickBooks accounting software. So that case it is the most important to easily set up the account and vendor in QuickBooks desktop. And for this, simply follow these easy step which is just mentioned below:-
- In the first step, if no existing vendor has granted a loan. So that case simply creates a vendor here for the bank/ financial institution that is just issuing it.
- And after doing the last step, simply record the ‘initial loan’ amount as opening balance or as a just transaction. Then, just set in the loan origination date. And if any case the payments are already made against the loan. So that time you simply fill in these checks, bills or journal entries.
- Now simply build an account related to an expense account to just store interest fees and payments, if there was none previously.
- And then, simply make an ‘Escrow Account’ if required.
What is an Escrow Amount?
The Escrow is just a particular part of a loan that is always kept in an account by a third-party until all the conditions of the loan are simply fulfilled. And also the Escrow account is simply related to the QuickBooks asset account that just monitors the Escrow portion of the loan payment. With this, the account is essentially used to pay insurance and taxes.
This is how you easily & quickly set-up an Escrow Account, just follow these steps:-
- Firstly, simply go to the ‘lists’ menu, and then just choose COA (chart of accounts).
- And after that, simply click on the ‘account’ option and then just select.
- Now just select the ‘other account type’ and then simply choose the ‘other current asset’ and after this just click on the continue button.
- In this step, simply fill in the name of the account in the ‘account name’ section.
- And when at the ‘description field,’ now you just enter an explanation or short note simply related to the account. But by the way, this easy step is optional.
- At last, simply choose the save and close button.
How do We Easily & Quickly Track Loans & Repayments by QuickBooks Loan Manager?
- In the very first step, simply go to the banking menu and then just click on the ‘loan ’ option.
- Then just select the ‘add loan’ option.
- And now, simply enter account complete information of the loan and after this just select the next option.
- First account name – Here place the loan account which is simply made previously.
- Lender – The vendor who will simply get the complete payments.
- Origination date- Date from which the Loan originates or just begins.
- Original amount- The full Initial and total amount of the loan.
- Term- The complete time it will just take to repay the loan in a detailed period such as weeks, months or the years.
- After doing the previous step, simply enter the complete payment Information of loan and then just click on the next option.
- Just select the ‘due date of next ’ option.
- Payment amount- The amount to be simply paid in each detailed period.
- The next payment number- It is appropriate only if the previous complete payments are just already made.
- Escrow payment- Simply fill the Escrow Amount.
- Escrow payment account- Just the same as the last step. [the Escrow Amount]
- And then simply choose the ‘alert me ten days before payment due date option. This instant step is always optional.
- Now just enter the complete interest information of the loan and then just click on the finish option.
- The interest rate- Simply fill in the interest rate of the loan.
- The compounding period- Just fill in the period here as per the complete details defined in the loan documentation.
- Payment account- Here place in the bank account that you will simply use to pay off the loan.
- Interest expense account- This account easily and quickly tracks the complete interest.
- Charges/fees expense account- It will simply track the costs/fees of the loan.
- And finally, just review the complete Loan Information. After doing this, simply choose the ‘edit loan details’ if required. And the summary tab at the bottom section of the QuickBooks loan manager simply shows the complete and right loan details.
What is the Scenarios Tool?
It is one of the most amazing tools in QuickBooks software. This Scenarios tool to simply see the complete effects of other repayment time period, payment amounts, etc. And here our QuickBooks enterprise support expert team also describes the steps to use it. So simply have a look:-
- In the very first step, simply choose the ‘what if scenarios’ button.
- And then, from the ‘choose a scenario’ drop-down, you can just select either of the two ‘evaluate the two new loans’ or ‘how much to pay with a new loan’? option.
- After doing the last step, in the ‘choose a loan’ drop-down just select a loan option to work with.
- And then, simply fill in the complete loan criteria, and then just click on the calculate to simply follow the results.
- Now, just click on the ‘print’ to print the results option.
- And finally, simply choose the OK button to just close or shut down once all the process is just finished.
In Bottom Line
QuickBooks loan manager is an efficient and active tool to easily manage loan-related activities and tasks and check any types of mistakes. And which is might simply occur due to manual errors or because of some other reasons.
And that’s all about how to easily and quickly set up a QuickBooks loan manager and also utilize it. Once you set-up correctly and properly, then it always keeps a great record of the loans and the credit amounts which you are just taken.
Also Read:- QuickBooks Advanced Inventory