accountant

How can I record a loan given to an employee/business?

There might be cases where you would have given a loan to one of your employees or to another business. You can record such transactions in Zoho Books by following the instructions below:

You must first create an account to record your loan,

  • Go to the Accountant tab on the left sidebar of Zoho Books.
  • Go to the Chart of Accounts tab and select the + New Account button.
  • Enter a suitable account name (say Asset Loans). Select Other Current Asset as the account type from the Account Type drop-down.
  • Write a short description if required and click Save.

Next, record the loan given as an expense :

  • Go to the Purchases tab on the home page of Zoho Books.
  • Go to the Expenses tab and select + New button.
  • Select Expense Account as Asset Loans (the account name which you have created).
  • Fill out the rest of the form and click on Save.

If you’ve received a payment for your loan, follow the steps below:

  • Go to the Banking tab and select the account to which the money was received.
  • Click on the Add Transaction drop-down and select Other Deposit under Money In.
  • Select From Account as Asset Loans.
  • Fill out the rest of the form and click on Save.
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