How to Post an EIDL Loan in QuickBooks: A Comprehensive Guide

Posting an Economic Injury Disaster Loan (EIDL) in QuickBooks requires careful attention to detail to ensure accurate record-keeping. This guide will walk you through the essential steps to properly post your EIDL loan in your accounting system.

Step-by-Step Guide to Post an EIDL Loan in QuickBooks

To start, you need to create a liability account for the EIDL loan. This ensures that your loan is accurately recorded in your accounting system. Here’s how you can do it:

Create a Liability Account for the Loan

Go to the Chart of Accounts Create a new account by clicking on New Select Liability as the account type Choose Long Term Liabilities if the loan term is more than a year, or Current Liabilities if it’s less than a year Name the account, e.g., EIDL Loan Payable

Record the Loan Deposit

Initiate a new entry by clicking on the New button Select Bank Deposit Choose the bank account where the EIDL funds were deposited Enter the Date of the deposit In the Add funds to this deposit section: Enter the Date of the deposit Select the EIDL Loan Payable account you just created in the Account field Enter the Amount of the loan Optional: Add a description for reference Save the deposit

Record Loan Payments

When you make a payment on the loan, initiate a new entry by clicking on the New button Select Expense or Check depending on how you are paying Choose the bank account from which the payment is made In the Payment account field, select the EIDL Loan Payable account Enter the Amount of the payment If there is interest, create an interest expense account and record it in the same transaction Save the payment

Tracking Loan Balance

To stay on top of the balance of your EIDL loan, run reports to track the balance. Follow these steps:

Go to the Reports menu Generate a report for Liabilities The report will show the current balance of your EIDL loan

Additional Tips

To help you manage your EIDL loan effectively in QuickBooks, here are some additional tips:

Documentation

Keep all documentation related to the EIDL loan, including the loan agreement and any correspondence with the SBA for your records

Consult a Professional

If you’re unsure about any steps, it may be beneficial to consult with a CPA or accountant to ensure proper handling of the loan in your financial records

By following these steps, you’ll have accurately posted your EIDL loan in QuickBooks and can manage your loan payments effectively.