expenses

How do I record loans and repayments?

Businesses tend to take short and long term loans from banks or financial institutions based on their capital needs or current requirements. Using Zoho Books, you can record the loans received and repayments made to ensure you’ve kept track of them.

Let’s see how you can:

Record Loans Received

To track the loans you have received, you should first create an account to record the loan and then record the transaction.

To create a new account:

  • Go to Accountant on the left sidebar, and select Chart Of Accounts.
  • Click + New account at the top of the page.
  • Select the Account Type as Other Liability (or any other liability account based on the loan received) and enter other necessary details.
  • Click Save.

Now, you can record the loan. Here’s how:

  • Go to Banking on the left sidebar and select the bank account to which you received the loan.
  • Click the Add Transaction dropdown in the top right corner of the page and select Deposit from Other Accounts under Money In.
  • Select the From Account as the account you created for the loan and enter the other necessary details.
  • Click Save.

Now, after creating this account, you will be able to record loans under this account.

Record Repayments Made

To record repayments:

  • Go to Purchases on the left sidebar and select Expenses.
  • Click + New in the top right corner to create a new expense.
  • Select the expense account and enter the necessary details.
  • Click Save.

Once done, the repayments you’ve made will be recorded.

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