Help choosing account type for loan
Anthony Linnett
Member Posts: 1 ✭
We are a service provider with a line of credit to a financier. We incur fees based on our monthly business. We are given invoices to repay our line of credit.
I would like this line of credit to appear on our balance sheet. Configuring the account as a 'loan' type makes it appear on the balance sheet, however invoices appear as a negative expense (net positive result), whereas I want the invoice to incur a net negative result.
An expense account does not appear on the balance sheet.
Please suggest the account type configuration that meets my requirements.
Reckon Accounts Plus.
I would like this line of credit to appear on our balance sheet. Configuring the account as a 'loan' type makes it appear on the balance sheet, however invoices appear as a negative expense (net positive result), whereas I want the invoice to incur a net negative result.
An expense account does not appear on the balance sheet.
Please suggest the account type configuration that meets my requirements.
Reckon Accounts Plus.
0
Comments
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HI Anthony,
Thank you for your question.
Since Line of Credit is like an overdraft or a credit card - It might be better to set that up as a Credit Card. Then use Credit Card functions to pay charges. On your Balance Sheet, you will only see the outstanding balance on the date of the balance sheet. It will not show the full amount of the line of credit.
Alternatively, when you get charged for the line of credit, enter a bill to an expense account - Charges on Line of Credit - and pay from bank account or whatever other account. This will reflect on your Profit & Loss Report.
You can choose either of them to see what is best for your situation.
Thanks
Ifti
1
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