How do I add a Loan account and link income/expense accounts to it?
Occasionally a business may need to borrow money to fund capital investements e.g. purchase of equipment. When your company borrows money, you should record the loan as a liability in your accounts and track the loan deposit amount and each loan payment that you make to reduce the liability.
This is a 3 step process:
Step 1: Setup a Liability (Loan) account:
Note: If you are using Cashbook Platinum, the Reporting Group will most likely be either 8-810 or 8-850. If you are working within a consulting group, please check with them as to which reporting group you should use. This can have an affect on advanced budgets and reporting.
Step 2: Setup an Other Income Account.
Step 3: Setup an Other Expense Account.
For information on how to record a loan income transaction click here.