QuickBooks Tutorial - How to Account For Loans to Your Company
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Uploaded by nerdenterprises on Jan 28, 2011
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Many times in business we will find that the time has come to take on a loan in order to catalyze our ideas and turn them into a reality. A good idea will only go so far if it requires capital and you don't have it. Loans can come in many forms. The first choice of course is that the owner or shareholder of the company makes a loan to the company. This was covered in a previous blog post so this time especially since someone recently wrote in and asked why I don't have a post on loans from 3rd parties. My answer to him was that I just haven't done a post on loans to the company where the lender is an outside enterprise. Like a bank! Or an investor. Actually an investor would make an investment and that would show up in the Equity section of the balance sheet. Since we are talking about loans we are talking about the liability section of the balance sheet. Loans are actually pretty simple but they are often screwed up by inexperienced bookkeepers!
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