
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 home page 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.