Account for loans and lines of credit

If you prefer to use journal transactions, see Account for a loan with
journal transactions.

Create an account for a loan or line of credit

Account for a loan or line of credit received

Account for a loan or line of credit repayment

Create an account for a loan or line of credit

To create an account to represent your loan or line of credit:

1. On the left-side menu, click Accounting > Chart of Accounts.
2. At the top right, click Add a New Account.
3. For the Account type, select Loan and Line of Credit.
4. For the Account name, enter a name for the loan or line of credit.
5. Choose a currency.
6. Click Save.

Account for a loan or line of credit received

To create a transaction that records the deposit of the funds into your bank account:

1. On the left-side menu, click Accounting > Transactions.
2. Locate the deposit transaction or add an income transaction.
3. For the Account field, choose the bank account the loan was deposited into.
4. For the Category field, choose Transfer from Bank, Credit Card, or Loan, then select the loan or line of credit account.
5. Enter the date, amount and description.
6. Click Save.

Wave will automatically create the other half of the transfer for you.

Account for a loan or line of credit repayment

To account for a repayment:

1. On the left-side menu, click Accounting > Transactions.
2. Locate the imported expense transaction or create an expense transaction.
3. For the Account field, choose the bank account you paid the loan or line of credit from.
4. Select the date and enter the amount of the payment.
5. Click Split transaction.
6. On the first line, for the Category field, select Transfer to Bank, Credit Card, or Loan, then select the loan or line of credit account. In the Amount field, enter the principal payment.
7. On the second line, for the Category field, select Interest Expense. For the Amount field, enter the interest payment.
8. Click Save.

Wave will automatically create the other half of the transfer for you.

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.