Call Quickbooks Support and Know How to Track a Line of Credit

In this article you will learn how to track a line of credit. To know more call Quickbooks Support

Setting up a line of credit account

Follow these steps to set up a line of credit account:

• On the Toolbar, select the Gear icon.

• Select Chart of Accounts under your company.

• Click on New.

• Select Credit Card in the Account dialog from the drop-down which lists in the Account type and Detail type fields.

• For the account, enter a name and other important information in the appropriate fields. Leave the account Balance field blank.

• Click on Save and Close.

• The account now all set up and ready for use.

Deposit a line of credit extended to your company

Follow these steps to create a deposit for a line of credit extended to your company:

• On the Toolbar, click on the Plus icon (+).

• Select Bank Deposit, from Other.

• Choose the account you wish.

• Select the credit card account you created from the Account drop-down list in the Add funds to this deposit section.

• Enter the Amount that is to be deposited to the bank.

• Click on Save.

• Hence, this deposit is recorded.

Record interest charges on your line of credit

Follow these steps to record interest charges applied to your line of credit by your financial institution:

• Select the Plus icon (+) on the Toolbar.

• Under Vendors, select Expense.

• In the Choose a payee field, select or enter the name of the financial institution.

• From the Bank/Credit account drop-down list, select the line of credit account you set up.

• From the Payment method drop-down list, select Credit Card.

• In the Account details section, select your interest expense account from the Account drop-down list.

• Enter the Amount of the interest charge.

• Select Save.

• The interest charges are recorded.

Record repayment of your line of credit or interest charges

Follow these steps to record a repayment to the line of credit or interest charges:

• On the Toolbar, click on the Plus icon (+).

• Select Check from Vendors.

• Select or enter the name of the financial institution in the Choose a payee field.

• From the drop-down list in the Bank Account field, choose a bank.

• Select the credit card in the account details section from the drop-down list in the Account field.

• Now, you need to enter the amount of the payment.

• Click on Save.

• You have successfully recorded the repayment.

Enter payments made from your line of credit

You can enter a payment made directly from your line of credit to a vendor without entering a bill first:

• On the Toolbar, select the Plus icon (+).

• Select Expense from Vendors.

• Select the credit card you set up for your line of credit from the Bank/Credit account drop-down list.

• Chose the expense in the accounts detail section or any other account which was involved from the drop-down list in the Account field.

• In the appropriate fields, enter other information about the expense.

• Click on Save.

• You have successfully recorded the payment and the expense.

To know more about how to track a line of credit in Quickbooks Call Quickbooks Support at 1 (855) 441 4436.