QuickBooks Loan Manager is one of the features in QuickBooks, a software program produced by Intuit for small business accounting needs. The Loan Manager is designed to help small businesses handle their outstanding loans, serving as a central location to keep track of each of their loans and manage payments.
Function
The Loan Manager helps you calculate the correct amount of principal and interest due for each of your payments. It tracks the progress of your loan repayment, including how much principal remains on a loan, and continues to update the loan's amortization schedule, which is the schedule of payments for a loan, as the principal and interest necessary to pay off the loan change.
Notable Features
One of the features of using the Loan Manager is that you can arrange to receive updates that post to your QuickBooks Reminders list when a loan payment is due in 10 days. This helps ensure that you will not miss a payment date because you forgot about it. The Loan Manager also enables you to make the correct payments for a loan directly from QuickBooks, printing up checks for the correct amounts and to the correct lender at your request. Following the payment, the Loan Manager automatically adjusts the amortization schedule after each payment.
Preliminary Steps
In order to use the Loan Manager, you need to take some steps to enter into the program, according to QuickBooks Support. For a new loan, you need to set up a liability account for the loan first, adding any information that you want the Loan Manager to track, such as details about the lender and the balance on the loan. Then, you need to set up an expense account for the interest on the loan and possibly an escrow account, if you are making escrow payments. Finally, transactions should be up to date.
Set-Up
The Loan Manager feature is located in the Banking section of the QuickBooks program. Once the preliminary work is done for the Loan Manager, the set-up is very straightforward. It involves simply entering account information, payment information and interest information for the loan. Account information includes such details as the loan origination date, the original loan amount and the loan's term.
Tags: Loan Manager, amortization schedule, payments loan, principal interest, such details