QuickBooks Loan Manager allows you to decompose every payment to correct amounts of principal & interest payable. You can easily set up and process monthly installment payments and adjust them if you miss a payment. In this blog, we will get to know how to track new and existing loans, create repayments and run some different ‘what-if scenarios’ for comparison on different loan choices.
Let’s see how Loan Manager in QuickBooks works. Any loan needs a fixed monthly payment, and this includes the monthly compounded interest at a fixed rate, the monthly principal installments, the decreased interest portion and the increased principal portion that grows with each installment payment throughout the Loan.
Now, we know the Loan is issued at a fixed interest rate and with every installment reduces the principal amount of the outstanding loan, the interest paid of the fixed amount of installment payment is also lower.
The Loan Manager calculates the amortization schedule and keeps track of current due installment as well as the outstanding loan balance. Therefore, anyone using QuickBooks does not have to calculate the correct allocation of interest & the principal reduction in every monthly payment. Moreover, you do not have to track every payment to the amortization schedule.
Before utilizing QuickBooks Online Loan Manager, you can set up the below-given accounts & vendor in QuickBooks Desktop.
Also Read: How to solve QuickBooks Banking Error 102?
Escrow is a particular portion of the loan that exists in a third-party account until the conditions are requirements of the loan are met. An Escrow Account is a QB Asset Account that tracks the Escrow Portion of a Loan Payment. The Escrow Accounts are usually used to pay Taxes and Insurance.
Understand what is an Escrow Account and when QuickBooks loan Manager not Working by talking to a technical expert at QuickBooks help desk phone number 1.855.365.6O12.
You can choose the ‘What if Scenarios Tool’ to see the effects of the repayment period, other payment amounts, etc.
QuickBooks Loan Manager is an efficient tool to manage loan related tasks and activities and prevent any mistakes and blunders that might arise due to manual errors or because of other reasons. You can speak and consult with a technical expert if you have any doubt. Give a quick call at QuickBooks desktop support phone number 1.855.365.6O12.