Setting up a liability account for a loan

You can use QuickBooks liability accounts to track the loans your company has with lending institutions and lenders.

To set up a liability account for a loan:

  1. Choose Lists > Chart of Accounts.
  2. Choose New from the Action pop-up menu ( image).
  3. In the New Account window, choose the appropriate account type:
    • For short-term loans (one year or less), choose Other current liability.
    • For long-term loans, choose Long term liability.
  4. Enter the name of the lender and a description of the loan.
  5. Leave the opening balance at 0.00.
  6. Click OK.
  7. To set the opening balance for the liability account, use the Make Deposits window to deposit the money you received. In the From Account field, enter the name of the liability account you set up to track the loan.