The first step to properly tracking loans and lines of credit in QuickBooks is to set them up on the chart of accounts. We will do this next. Follow these steps:
- Navigate to Accounting and select Chart of Accounts, as shown in the following screenshot:
- Click on the New button located to the left of Run Report, as shown in the following screenshot:
- Fill in the fields, shown in the following screenshot, to add a new business loan or line of credit account:
A brief description of the fields in the preceding screenshot is as follows:
- Account Type: Business loans and lines of credit generally fall into one of two account types: current liabilities or long-term liabilities. Current liabilities have a term of less than one year, while long-term liabilities have a term greater than one year. Select either current liabilities or long-term liabilities from the drop-down menu.
- Detail Type...
