The Loan Manager feature in QuickBooks helps you track the loans that you’ve set up based on the information in your Long-term Liability and Other Current Liability accounts. When you use the Loan Manager, you can keep track of all your loans in one location and be reminded of upcoming payments.
When you’re ready to add a loan to the Loan Manager, have your loan documents in hand. You’ll need them for the origination date, payment amount, term, escrow amount (if any), interest rate, and other information.
For a new loan, set up a liability account for the loan. When you add the account and lender details, include any information you want the Loan Manager to use for tracking, such as the account number and lender contact information. This information can be found on your loan documents. Be sure that you enter the correct opening balance for the account. Otherwise, you will not be able to set up payments from the loan manager. Set up an expense account for tracking the loan interest. If you need to make escrow payments to the loan, set up an escrow account for them.
Correct set up of your loans in Loan Manager will help you categorize interest and principal payments.
Tags: escrow, interest, lacrews bookkeeping, lender, liability account, loan manager, loan payments, opening balance, principal, QuickBooks
