Create a loan account
- On the left-side menu, click Accounting > Chart of Accounts.
- At the top right, click Add a new account.
- In the Account Type field, select Loan and Line of Credit under the Liabilities & Credit Cards section.
- Name the account, select the currency, and enter a description, if applicable.
- Click Save.
Account for a loan received
If you upload transactions, the loan deposit may already be imported. Create a journal transaction and delete the imported transaction to avoid a duplicate, or learn how to Account for loans and lines of credit with transactions.
- On the left-side menu, click Accounting > Transactions.
- At the top right, click Add transaction > Add journal entry.
- Enter the date and description.
- In the first row, debit the account where you received the loan with the loan amount.
- In the second row, credit the loan liability account with the loan amount.
- Click Save.
Account for a loan repayment
If you upload transactions, the loan deposit may already be imported. Create a journal transaction and delete the imported transaction to avoid a duplicate, or learn how to Account for loans and lines of credit with transactions.
To record a loan repayment, create a new journal entry for each repayment transaction.
- On the left-side menu, click Accounting > Transactions.
- At the top right, click Add transaction > Add journal entry.
- Enter the repayment date and description.
- In the first row, for the Account, select the loan liability account you created, then enter the principal portion of the repayment in the Debit column.
- In the second row, for the Account, select the bank account where the loan is being repaid from, then enter the total repayment amount in the Credit column.
- To add interest, click Add line.
- In the third row, for the Account, select Interest Expense, then enter the interest amount under the Debit column.
- Click Save.
For more help accounting for loans and lines of credit, Wave has a team of in-house bookkeepers and accounting coaches. Learn more about Personalized bookkeeping with Wave Advisors.