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A
ADstaxic
November 6, 2025
Question

Loan Repayments as the Lender

  • November 6, 2025
  • 1 reply
  • 4 views

Hi everyone,

I’m looking for some guidance on best practices in QuickBooks Online for loan accounting. We are a lender and I want to make sure we’re handling client loan repayments correctly.


Recording Loan Repayments
To save time, we’d like to enter a single bank transaction that includes multiple loan repayments — for example, 1 deposit with 10 lines representing 5 different customers — each split allocated to principal and interest with the correct reference numbers. Is this an acceptable approach instead of creating separate bank transactions for each customer payment?

Handling Missed Payments (NSF / No Payment Received)
We manage loan schedules in our own software and only want QuickBooks to reflect what has actually happened. If a client misses a payment and no money is received, do we need to record anything in QBO at all? Or should we only record an NSF fee when applicable, rather than posting the payment and then reversing it?

 

1 reply

E
EmanE17QuickBooks Team
QuickBooks Team
November 6, 2025

Hello there, ADstaxic.

 

I see you’re working to streamline your loan accounting processes. I can guide you through best practices for recording bulk repayments and handling missed payments in QuickBooks Online (QBO).

 

First, yes, you can make a single deposit that includes multiple lines, with one line for each borrower. You can allocate each line between principal (Loans Receivable) and interest (Interest Income). This is a common and efficient approach for lenders. After that, it’s a good idea to consult an accountant to set up separate accounts for principal and interest to ensure your records are accurate.

 

To record loan repayments in one bank deposit, follow these steps:

 

  1. Go to + Create and select Bank deposit.
  2. For each borrower’s principal payment, add a line:
    • Received From: the customer (borrower)
    • Account: Loans Receivable (to reduce the receivable)
    • Memo/Reference: loan number, payment period, and any check/reference number
    • Amount: the principal portion of that borrower’s payment
  3. For each borrower’s interest portion, add another line:
    • Received From: the same customer (or group as you prefer)
    • Account: Interest Income (or the appropriate interest revenue account)
    • Amount: the interest portion of that borrower’s payment
  4. Once done, select Save and close.

 

Concerning the missed payments, there is no need to record a payment if no cash has been received. The loan balance should remain unchanged. Since QBO operates on a cash-basis system and no cash has flowed in, there is nothing to record. Your external loan software accurately maintains the schedule, tracks the accrual of interest, and displays the balance due. QBO only needs to record actual cash movements.

 

If a payment is received and later returned (e.g., NSF), you can record the cash reversal and any bank fees. Only record actual cash events. For step‑by‑step guidance, see the QBO help article: Record a returned payment or bounced cheque.

 

If you need more help with QBO, we’re happy to assist. Just reply to this thread.

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