Thanks for posting in the Community, Gibbo2.
Let me guide you on how to record the loan interest in your QuickBooks Online (QBO) account. You'll have to make sure to create a separate expense account for the loan interest. Here's how:
Set up an expense for the loan interest.
- Click on the Transactions tab.
- Click on Chart of Accounts.
- Click on New.
- Under Account type choose Expenses.
- Under Detail type choose Interest Paid.
- Enter a name of the account you want to show in your transactions and reports.
- Click on Save and close.
Once done, you can create an expense transaction for the loan interest.
- Click on the + New button and choose Expense.
- Choose a Payee, payment date and payment method.
- From the Payment account select the bank account you've paid the interest.
- Choose the Interest Paid expense account from the Category column.
- Enter amount of interest.
- Click on Save and close.
If you want to do the journal entry process, I recommend checking in with your accountant to know more on how to balance the amounts for each account used on the JE.
You can check this link to learn more about: Set up loan in QuickBooks Online.
Drop a comment below if you need any help managing your transactions in QBO, I'm here to help you any time!
