QuickBooks comes with lots of features and tools for the users and one of the most known features is the line of credit. Line of credit is a facility which gives a user information about the credit given for the loan. It’s predefined for the vendor or the users. If any transaction is done it will always reflect in the credit of the line. In today’s article, we will discuss how to set up the line of credit.
Steps for Setup a Line of Credit in QuickBooks
If you need to track a line of credit, you may need to set up the two accounts. Principal and other account is expense account for the interest.
Total Time: 35 minutes
How to Setup an Account for Principle
💠 Go to settings >>Select Chart of accounts
💠 Select New
💠 From the account type drop-down menu, select current liabilities
💠 From details type drop-down menu, a select line of credit
💠 Change the account name ( optional)
💠 Save and close
For the Interest, You Need to Organize an Expense Account
💠 Go to settings >> Select Chart of accounts
💠 Select New
💠 Select Expenses from account type drop-down menu
💠 Select interest period from the Detail type drop-down menu
💠 Change the account name
💠 Save and close
How to Record a Payment for a Line of Credit in QuickBooks
If you are going to send a bank or creditor a paper check, follow these steps:
💠 Select +New
💠 Select check under the supplier
💠 Select the name or enter the name of a financial institution in the payee field
In the bank account field select bank from the drop-down menu
💠 Select a line of credit from the category type field and enter the amount you want to pay down
💠 In category detail section, select interest paid from the category field and enter the amount you want to pay
💠 Save
How to Fund Transfer Between Two Accounts in QuickBooks
While recording its a common error that mistakes could be done. You can create the transfer by using any one of the below:
💠 Cheque
💠 Transfer
💠 Bank Transaction
💠 Journal Entry
Use Transfer
💠 Select +New
💠 Select Transfer under Other
💠 Select the bank account that the funds are coming out from the transfer funds from the drop-down list
💠 Select the bank account in which funds are being deposited from the Transfer funds
💠 edit the date
💠 Enter some notes in the memo field related to the transaction
💠 Save and close
💠 Setting up the line of credit helps you in many ways, through it you can keep an eye on your PPP approve loan, transactions, etc. If you need more help or any suggestions get back to any QuickBooks expert.
Need Help?
For any help dial and get support for your issues from the QuickBooks Helpdesk. QuickBooks support team is available for 24*7 with your resolutions. Experts are professional, polite, and having the experience of years in the same domain. You can contact the team anytime for your issues. You can also email at support@usingpos.com and one of the QuickBooks technicians contact you soon as per your details shared. QuickBooks provides you a platform to work on with more accuracy and with more advance and latest tools and QuickBooks Helpdesk provides you an error-free atmosphere so that users can work without any error or issue.
