 QuickBooks Online 2022. Make loan payments. Get ready because it's go time with QuickBooks Online 2022. Here we are in our get great guitars practice file we set up with a 30-day free trial holding down control scrolling up just a bit to get to that one two five percent currently in the home page otherwise known as the get things done page and the business view as opposed to the accounting view if you wanted to change to the accounting view it's something you can do by going to the cog up top and looking at the switch to the accounting view on down below we will be try toggling back and forth between the two views either here or by jumping over to the sample company file which is currently in the accounting view going back on over we're going to open up a few tabs by going to the tab at the top right clicking on it duplicating it let's do it two more times so we can put some reports in these tabs right clicking on the tab up top duplicating it one more time back to the tab to the left right clicking on it duplicating it again jumping over to the sample company file just to note where the reports are located in it and the accounting view which is on the left-hand side straightforward area there back on over to the business view and it's still thinking it's still thinking there it is okay so when the business overview and we're gonna go into the reports standard reports close up the hamburger go down to the balance sheet one of the faves of course and up top the rangeings they are a changing with 010122 to 1231 22 and run it go into the tab to the right and down to the business overview let's take a look at the reports area standard tab P&L profit and loss income statement closing the hamburger ranging and changing 010122 to 1231 22 to run it going to the tab to the right one more time uno vase boss with business overview in the reports closing up the hamburger I'm going to be searching this time for the trustee trial balance the T to the B trial balance there it is opening that up and then this is just a balance sheet on top of the income statement 010122 to 1231 22 and run it as well let's go back to the balance sheet tab holding control scrolling up just a bit and we're gonna go on down to the loan payable we put on the books so we got the loan payable on the books down here at the 72,000 we're gonna imagine that we're making payments on it now we set up an amortization table last time which was an exciting process that if you missed that you're going to want to take a look at it because it was good times and now we're going to use that amortization table to record the payments now remember as you record the payments there's a couple things you need to keep in mind with regards to the loans one is that you might have multiple loans if you have multiple loans then I would recommend having one account per loan possibly as sub accounts under the loan parent account and so that you can track the loan balances and tie them out to the amortization table you also will have to think about short-term and long-term portion if you're doing reporting purposes and I would do that periodically at the end of the month or year recording your balances in one loan account as you're doing the bookkeeping process so once again you can easily tie out your loan balance to the amortization schedules and also periodically break out short-term and long-term portion for financial and reporting needs at the end of the periods so let's go on over now the other thing we got to keep in mind here is that it's going to take three accounts to record a loan payment if we're going to record it properly and record the interest it's possible for you to say hey look I'm going to try to do my information on a cash basis purpose and use at the end of the period the CPA firm or the accounting firm to shore up to to the amortization table so in other words we could have an amortization table like this that might come from the financial institution or it might actually we might create it or we might get it from our CPA firm or our accounting firm and these are going to be the payments that are going to happen on it so it's possible to just say hey look I'm not going to deal with the interest I'm just going to record cash payments on a cash basis and that'll be the easy memorizable transaction lowering cash and lowering the loan balance every time I make a payment and then periodically at the end of the year wherever we are at possibly here by the end of the year or the end of the month I'm going to ask my CPA to make the amortization table such as this to then calculate what the loan balance should be to break out the interest as of that point in time for the period that has passed and break out the short term and long term portion periodically so that's one way you can try to make your bookkeeping a little bit faster and memorize these transactions a little bit easier if you're working with a CPA or if you wanted to do that on a periodic basis or you can get your amortization schedule like this from the financial institution or you can make one or from your CPA and then record your payments in accordance with the amortization schedule making your ending loan balance match or proper after each payment that you are making that's what we'll do here so I'm going to make this first one green we'll make this first payment first and then I'll make the second payment as of the end of the month we're going to imagine that this payment is happening at the beginning of the month which we'll put in on our case February 1st and then we'll make the second payment at the end of the month just so we can see the two payments you know together here and see the difference and kind of the issue with the recording of these payments from the amortization table and why we need the amortization table okay let's go back on over that's not where we're going that's the recording software there we go let's go back to the first tab hold down control scroll down a little bit to the one two five I'm going to hit the plus button we're going to do this with a check form because it's going to be a decrease to the check in account remember that if you're using bank feeds then you can use the bank feeds on this but it's a little bit more difficult because you're going to have to once the bank feeds go through typically do that adjustment to it to break out the proper interest and so let's see let's see how this will look with a standard check type of form so we're going to say this is going to go I'm going to say Chase is our bank I'm going to imagine Chase is our bank C-H-A-S-E Chase bank and so we'll do that it's set up and so that should be good it's coming out of the check in account we're going to say this happens on 020122 and the check number is correct so that's good the check numbers are lining back up again and then I'm going to go into the category not an item down here but a category and so we're going to say that we have interest expense now once again I'm in the business view and this is one of the things that I really am not a fan of with the business view is that they're not they kind of truncated the drop down here and you can have these other windows on the right hand side it's a little bit more difficult to add accounts so therefore I might be jumping back on over to the accounting view to do some of this data input in fact I think I will jump over to the accounting view to do it I'm going to right click on the tab up top and duplicate this tab and just take a look at what this looks like in the accounting view as well and everything else on the on the business view it's just a matter of where stuff is located it's it's and so you you might prefer the business view it's a little bit more compacted I think it would work well in a tablet as well which might be but this particular thing is not I'm not a fan of it so I'm going to hit the cog drop down I'm going to go to the switch to the accounting view switching to the accounting view and let's see what it looks like in the accounting view hitting the plus button and I'm going to enter another check and so let's do this again so this is going to be chase chase and I'm going to cash account and this is happening as of 020122 1016 is correct and then down here you can see the difference in the drop downs they give you the full list of drop downs they put they still put the expenses up top I would still prefer it to be in order assets liabilities like the order of the of the but they give these account the type of account on the left hands on the right hand side which that seems very important to me to know what type of account would be useful information so in any case we're going to have interest expense let's see if they gave us an interest interest and they call it interest paid here instead of interest expense I'd rather have it called interest expense personally because interest paid may not be accurate you might have interest expense that hasn't been paid because you might have an accrual kind of transaction related to it I'd also like to change the interest expense possibly to be another current current expense account so we might look at that later I'll use the account they have here what I won't do is create another account called interest expense and then cause myself confusion between the two accounts if I want to change it to interest expense I want to go to that account typically and then just change the name edit it but we'll might do that later and so then this is going to be for the amount of the $300 for the interest so 300 on the interest and not billable or anything like that and then the other side is going to have to go into the loan account so I'm going to say loan payable there's our loan payable account and so we only have one loan on the books so that should be it and that is going to be for the amount of the the 1058731058731058.73 so there is that so what is this going to do then it's going to decrease the check by by the sum of those two the cash account 1358.73 it's going to decrease it's going to record the interest expense on the income statement of 300 decreasing net income it's going to reduce the loan balance by the 1058.73 hopefully taking it down to an amount that matches the amortization table of the 70941.27 let's do it let's save it and close it and see if that if that is actually what happens and we'll go back to the tab to the right holding control scrolling up let's do a running it let's refreshing it up and then go on into that cash account hold control down scroll down just a bit to see what's happening around here and we can see down here we've got the 1358 so that looks good check goes down back to the report and then holding control scrolling back up a bit so we can see this one the loan account the loan account is now at 79 or 70941.27 that should match here 70941.27 see how that matches out that's why you want one account per loan so you can tie it out to the amortization schedule making you feel comfortable and confident that you did the proper data input if I go into that then of course holding control scrolling down again we see our amount here for the check going back up going back to our report holding control scrolling up a bit if we go then to the tab to the right on the income statement and freshen it up so we have a fresh report we're looking at we're going to see that we've got the interest paid here up top in the interest paid now obviously we could see it for the the whole two month time period if we were to look at this form just for the month of February 020122 and run that one that's all the information we have thus far on that interest expense so there we go now let's do it again just so we can see the difference if a month passed so now we're going to imagine a month passed or we're at the end of February and we're going to make the second payment so an entire month has passed the time flash forward in the movie time has passed one month has passed it's currently that's where we're at okay so then we're going to do this again and record the difference so let's go back to the to the second tab where we're in let's try to do it with the business view this time let's go back to the business view because I don't need to add any accounts I'm going to delete the one I was working on no do you want to leave without saving yeah and let's do it with the business view just so we can check out the drop downs I don't need to add any new accounts so it shouldn't drive me too crazy that's drop down thing that I don't really like chase we're going to chase here and then we're going to imagine it's the end of the month 022822 and so hold on not an expense account let's do a check I'm going to do a check sorry hold on I want to put a check number in so it's going to say it's a check that we want okay let's try it again so now we're going to say chase chase is the bank that we're paying on 022822 1017 we got our check number that's what I wanted and then down here it's trying to memorize the transaction that's great but it doesn't work exactly because the we can't just memorize these amounts down here the total is going to be the same the payment amount is going to be the same but there's a different breakout between the interest and principal that's the problem that's what makes it more difficult to automate that's what makes it a little bit more difficult to just do with the bank feeds that and the fact that we have three accounts impacted instead of two accounts so we're going to have to go over here and say okay I got to make a change things here need to change things round here going to change man 295 59 295 59 to wait a second I forgot 295 59 259.59 and then the loan reduction is going is going to 106 314 106 3.14 and so there we have it so that brings the total to the same I believe of hold on a second is that the same something funny happened 259 106 314 okay wait I got this one backwards the numbers are turned around can't you see the numbers are back okay I see it so now we've got the 1359.73 there and what's this going to do it's going to decrease the checking account by the 1359.73 it's going to record the interest expense now at the 296 59 and the loan payable at the 106 314 bringing the loan payable to what it should be on the amortization table hopefully if I got everything right this time 69 878 13 let's do it and see what happens do it and see what happens okay I will here we go we're going to then go to the balance sheet and see what happens I'm seeing now what happened we're going to go into the cash account and scroll down a bit scroll down a bit and then if we go down here there's the check so that so notice that the two checks are different that shouldn't be hold on a second let me come back into it again it should be the same amount shouldn't it on the check so it's going to be the 295 I so this should be 295.59 man I can't and this should be the 163.14 okay let's try it again try it again should be the same amount so then there it is that looks proper let's go back up top again and then let's run it again this is why you check it after you do the data input and then we're going to go down to the loan payable the 69 878 13 that should match our amortization table 69 878 13 that makes us feel confident a little more confident and then I'm going to hold control scroll down a bit there's there it is okay back up top let's go to the let's go to the income statement otherwise known as the P and L profit loss freshen it up and so now we've got these two amounts recorded in the same period at the beginning and end of the month and if I go into there of course we see there's a difference between the amount of interest that was applied out between the two payments even though the actual cash we paid was the same so that's going to be our loan payments let's jump on over to our trial balance to check out where we're at at this point I'm going to run it to to see what we are doing where we're at notice I'm running it for the two months time frame here on the on the trial balance to check our numbers and so if your numbers are tying out and you're working along with us that's great if not then try doing a range change sometimes it's a range issue and and then we'll do a transaction detail report at the end of the section which is a good tool to diagnose any differences