Set up Loan in QuickBooks Online in Easy Steps

• Go over to Settings in QuickBooks Online.
• Click on Chart of Accounts (COA) and select New.
• From the Account Type choose Long Term Liabilities.

• In the Detail Type drop-down, click the option of Notes Payable.
• Impart relevant name to the account.
• Into the Amount field, the loan must be typed in negative. This denotes that the loan payments are the liability to the company.
• Finally, click on Save and then Close.

Inclusion of the Loan Money

• Click on Create and open Journal Entry.
• Choose the account you created in first step from Account drop-down.
• Enter loan amount in Credits column.
• In the next line, select the related asset account.
• Enter the same amount in the Debits column.

Account the Loan Payment

• Choose Check from the +New button.
• In case of Direct Withdrawal of EFT, enter Debit or EF in the Check Space. If the actual check is to be sent, add its number.
• The details as given below must be entered in the Category Details section.

1. Liability account for the Loan and the payment amount is to be filled in first line
2. Expense account that holds interest amount.
3. Any additional cost in addition to appropriate accounts.

• Click on Save & Close.
  

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