loan

Hi there, @jpc4. I'm here to help you categorise the personal loan in QuickBooks Online (QBO).

In QBO, you have to set up a liability account to track the loan. Here's how:

1. Navigate to the Settings menu and select Chart of accounts.
2. Next, click New to create a new account.
3. Then, in the Account Type dropdown, choose Non-current liabilities (if you plan to pay off the loan by the end of the current financial year, select Current liabilities).
4. From the Detail Type dropdown, select Notes Payable (or Loan Payable).
5. Enter the account name (for example: "Loan for a car" or "Covid-19 relief loan").
6. Select when you want to start tracking your finances. In the Unpaid balance field, enter the amount in the account, and determine the as-of-date. Enter today's date if you want to start tracking immediately.
7. When done, select Save and Close.

After that, you're now ready to record the money you got from the loan. Refer to the steps below:

1. Click the + New button and select Journal entry.
2. In the first line, select the liability account you just created from the Account dropdown. Input the loan amount in the Credits column.
3. Next, on the second line, select your bank account from the Account dropdown. Enter the same loan amount in the Debits column.
4. Once done, select Save and Close.

Once everything is fine and you're ready to pay back the loan, please follow Step 3 of this article: Set up a loan in QuickBooks Online.

If you have other concerns categorising your loans, please don't hesitate to leave a reply below. Have a good one, and stay safe.