How to record a loan being made by the company

Question asked by Richard Cooper 10 years ago

How do you recommend recording a loan which the company is making?

I assume step one is to create a "bank account" to represent the loan but none of the existing account types seems to fit the bill w.r.t. where the loan is recorded on the balance sheet. The "loan" and "directors loan" account types live under "Current Liabilities/Trade Creditors" which is better suited for loans being received. All the rest of the account types live under "Current Assets/Cash" which is better but still not ideal.

Is there any way to have a "bank account" which lives under say "Current Assets/Trade Debitors" or "Current Assets/Other Debitors"? Or is my only option to use "Current Assets/Cash" and make sure my accountant knows it's not really cash when it's time to prepare the annual accounts.

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Hi Richard

You could either create a new nominal code (Settings > Codes > All) and tick the 'show in purchases box' so you can analyse the payment straight off the bank import or if you prefer the bank account route just create it as a loan but give your accountant the nod come year end.

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10 years ago

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