Using the Loan Manager in QuickBooks 2019

Watch in QuickBooks Pro 2019 video tutorial. We will discuss the Loan Manager. Learn all of the information about the Loan manager. What is it all about and how it really works?

We are working in module eight where we’re talking about loans. All the way down to section three where we are going to look at the Loan Manager.

QuickBooks has a little feature called the Loan Manager that you wouldn’t even know was here (if you didn’t look through the menu to find it). There’s no icon for it on the Home screen.

The Loan Manager allows you to input all of the information about the loan. When you’re ready to make a payment, you can go through the Loan Manager. It will spit out a check with the correct amount for the principal and interest.

Let me show you how the Loan Manager works.

The reason I had you set up your account in the Chart of Accounts (like this first) is because I wanted you to be aware that you have to have this set up before you go into the Loan Manager. Since it’s going to ask us in there which account we are wanting to use.

Here’s how you get to the Loan Manager.

You’re going to go up to Banking on the menu. You will see the Loan Manager. When the Loan Manager appears, it’s going to ask us several questions about the loan.

It’s going to ask us what the principal rate is (the term in months). You’ll want to have all that on hand. So, that you can plug it in.

The way this works is, (if you had any loans already set up) you would see them in this list. Obviously, we don’t! So, we’ll be adding a loan.

The first thing it asks us is the account name. This is my Chart of Accounts. This is the loan that we set up right here! That’s why it was important to have that set up first.

It will pull in the current balance. Next thing, it wants to know is who is the lender. In our case, it’s the Great Statewide Bank.

The next thing it asks for is the origination date. We’re going to say it was in November. Then, it’s going to ask for the original amount of the loan. We’re going to say $15,000. The term in months.

Notice, my term could be in weeks or years (if I choose to put that in there).

Next, what is the date of the next payment? So, if you think about this, we made a payment in January. Our next one is actually going to be in February.

We have to put in the payment amount. This would be the full amount (principal plus interest). The next payment number would actually be payment number two.

We’re going to pay for this monthly. Then, it asks us, does this loan have an escrow payment? If it does, then, we could fill out the escrow payment amount (an account that we would have already set up in QuickBooks). Notice, it also will alert you ten days before a payment is due (if you want it to).

I’m going to hit Next at the bottom. Now, it’s going to ask me, what the interest rate is. We’re going to say it’s 4.5% and it’s compounded monthly. But, it could be compounded by exact days.

I need to have the payment account, meaning, when I make a payment (which account does the money come out of): the interest expense account. That’s going to be the expense account where the interest gets plugged into.

And then, if you have any late charges or any kind of additional fees, those would be set up to go under Bank Service Charges.

Now, I’m going to hit Finish. Then, you’ll see our loan is on the list.

You have some options over on the right. We already know how to add a loan. We’re going to set up a payment in a minute. But, what if you need to edit the loan details? So, you could click right here. This will take you right back into the edit loan option and you would make your changes. Click OK.

You can also remove a loan if you pay for it and it’s paid in full (you just don’t want it in here for whatever reason).

The tabs down at the bottom. You have a Summary tab that just gives you some general information you have plugged in.

Here is a neat thing! Here, is the payment schedule. So, you can see when you look at each one of these the date of the next payment: how much is the principal, how much is interest. All the way across!

Now, what’s really neat about this is you can print this out. But, you’ve also got these! What are scenarios? What if, you’re trying to change your monthly amount of payment? What would the loan look like?

I could go in and plug in $400 a month instead and calculate it with all the same variables. Then. it would tell me my exact total interest, my total payments. Everything I would need to know (if this particular scenario was true). That’s really cool how that works. I’ll click Cancel in this case.

But, let’s say I’m ready to make that next loan payment. I’m going to come to the Loan Manager. All I’m going to do is choose Setup Payment. It will ask me if this is a regular payment or am I making an extra payment.

It already has the principal and interest split up for me. Now, (if I decide) these are different for some reason. Notice, I can change those numbers. Also, if there is a fee (like a late fee for example), I could plug that in here as well.

And, the last thing is the payment method. Do I want to write a check and pay for it now, or enter a bill and pay it later? We’ll write a check and click OK.

Now, you’re going to see the actual check appear. You’ll notice it’s filled in totally. You’ll want to double check it. Maybe you don’t want the check number in there. Maybe you have a different date.

Obviously, you might have one in March. But you can see, it’s got my $500 and it’s got my principal and my interest. All I need to do is Save & Close (when I’m ready to make that payment).

And that’s how that’s going to work! It’s a great little feature that you don’t know exists unless you happen to be looking for it.

I’m going to hit Close and now we’re back to our Chart of Accounts.

Well, that’s all I needed to talk to you about as far as working with loans. We’re going to go now over into module nine and we’re going to talk a little bit about working with credit cards; your company uses to buy items for the business.

Jenny Ann Valenciano