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. To record such transactions in Zoho Books, you must first create an account to record your loan. Here’s how:

  • Go to the Accountant module on the left sidebar and select Chart of Accounts.
  • Click + New Account on the top right corner of the page.
  • On the Create Account page, enter a suitable Account Name (say Asset Loans).
  • Select Other Current Asset as the account type from the Account Type dropdown.
  • Enter the Account Code and write a short description for the account, if required.
  • Click Save.
Create Asset Loans account

Next, to record the loan given as an expense:

  • Go to the Purchases module on the left sidebar and select Expenses.
  • Click + New on the top right corner of the page.
  • Select Expense Account (Asset Loans in this case).
  • Click the dropdown in the Customer Name field and select the employee or business receiving the loan.
  • Enter the other necessary details and click Save.
Record the loan as an expense

If you’ve received a payment for the loan, you can record it in Zoho Books. Here’s how:

  • Go to the Banking module on the left sidebar and select the account in which you received the money.
  • Click Add Transaction on the top right corner of the page and select Deposit From Other Accounts under Money In.
Select Deposit From Other Accounts under Money In
  • In the pane that appears, select the From Account as Asset Loans.
  • Fill in the details of mandatory fields like *Date,* *Amount,* and *From Account*.
  • Click the Received From dropdown and select the employee or business repaying the loan.
  • Click Save.
Deposit From Other Accounts

You can view the loan details by creating a custom report. Here’s how:

  • Go to the Reports module on the left sidebar.
  • Select the Account Transactions report in the Accountant section.
  • On the Account Transactions report page, click Customize Report in the top left corner of the page.
  • On the Customize Report page
  • Click + Add Filters in the Advanced Filters section of the General tab.
  • Select Account from the Select a field dropdown, is in from the select a comparator dropdown, and Asset Loans from the Select Account dropdown.
Customize report
  • Go to the Show/Hide Columns tab.
  • Under the Available Columns section, click the + button next to the Contact field to add it to the Selected Columns section.
Choose the required columns
  • Click Run Report.
Account Transaction report

You can view the loan details like the amount given as a loan, the amount repaid, the name of the employee or business receiving the loan, etc.


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