QuickBooks Online: How to Report an SBA Loan Payment

Keeping your transactions up to date is a surefire way to have a healthy business. Especially if your business has decided to take out a loan, such as an SBA loan, for additional funding. You always want to make sure that your payments have been recorded to avoid any missed or late fees. Here, we will go over how you can report an SBA loan payment using QuickBooks Online.

Is Your SBA Loan Set Up?

Before recording any new loan payments, we need to make sure that your loan has been properly set up within QuickBooks Online. To do this, follow these steps below:

1. Go to “Accounting” by clicking on the transaction tab.
   
   
2. Click on “Chart of Accounts.”
   
   
3. Search for your loan. This would be the name that you had given to your loan.
   
   
4. Make sure the loan has been set up as a long-term liability.

What if I Don’t See My Loan?

If your loan has not yet been set up within QuickBooks Online, then follow these steps below:

1. Follow steps 1 & 2 above and head towards the “Chart of Accounts” section.
   
   
2. Click “New.”
   
   
3. A new window should appear and prompt you to enter the necessary information:

Name: Give the loan a clear name, ex: Loan, SBA, etc.

Account Type: Long-term Liability

Detail Type: Loan Payable

How to Enter a New Loan Payment (Two Methods)

After confirming or setting up your loan in the chart of accounts, you should be ready to move on to the next step of the process and record any new payment made to the loan. There are two methods to this:

Method 1:

1. Locate the transaction in the bank feed
   
   
2. Enter the lender's name
   
   
3. Assign the loan account
   
   
4. Accept transaction

Method 2:

1. Go to your “Dashboard.”
   
   
2. Click on the “New” button on the sidebar.
   
   
3. Select “Check” if you wrote a check. Otherwise, select “Expense” if paid any other way.
   
   
4. You should be prompted with a form; fill out the necessary information for the payment.

• Vendor/Payee: This would be the lender of the loan
• Bank Account: Find the transaction for the loan 
• Payment Date: The date of the transaction
• Category: Type the reason for the payment, ex: Loan
• Amount of Payment: Finally, enter the amount of your payment for the loan

5. Save and Close

Conclusion

Recording your SBA loan payments correctly in QuickBooks can be a tedious process; however, it is crucial that your financial reports accurately reflect your business. This can make it easy for bookkeepers who are looking to help your business stay on track! For additional assistance in bookkeeping, contact our team at Ledgerfi today and let us handle the books!