![]() ![]() Since Loan Manager reads information from your QuickBooks chart of accounts when it first loads, if the accounts required to set up the loan do not exist when Loan Manager starts, you won’t be able to set up the loan properly – even if you open a window within QuickBooks to add the accounts while Loan Manager is running. Have in front of you the following information about the new loan: the origination date, the term, the interest rate, whether your lender uses daily compounding (and if so, whether it’s on a 360 or 365 day basis), the payment amount, the sequential payment number, the due date of next payment, and the escrow amount (if any). ![]() Enter the journal entries in QuickBooks so the current balance of the liability account associated with your new loan equals the original amount of the loan.Verify the vendor or other name to which payments will be made exists if not, add the vendor or other name.If your loan has escrow payments associated with it, verify that the asset account which will be used to record prepaid expenses (such as property taxes or insurance) for the new loan exists in your QuickBooks chart of accounts and that its active if not, add it or change its status.Verify the expense account which will be used to record other fees (such as bank fees) for the new loan exists in your QuickBooks chart of accounts and that it is active if not, add it or change its status.Verify the expense account which will be used to record interest expense for the new loan exists in your QuickBooks chart of accounts and that it is active if not, add it or change its status.Verify the payment account (normally a bank account) which will be used to make payments on the new loan exists in your QuickBooks chart of accounts and that it is active if not, add it or change its status.Verify the liability account for the new loan exists in your QuickBooks chart of accounts and that it is active if not, add it or change its status. ![]() Loan Manager doesn’t track interest-only loans, so if your loan requires you to make regular payments of interest over time and the entire principal in a single payment at the end of the term, Loan Manager isn’t the right tool
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January 2023
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