Conquering Your Castle's Credit Card: How to Set Up Your Mortgage in QuickBooks Online
So, you've just purchased a house – congratulations! You're officially a homeowner, a mortgage-wielding warrior ready to battle… well, mostly just budgeting for the next decade or so. But fear not, intrepid adventurer! This guide will be your trusty steed as you navigate the fantastical realm of QuickBooks Online and set up your mortgage like a boss.
 |
| How To Set Up A Mortgage Loan In Quickbooks Online |
First things First: We Need a Vault for Your Debt (Account)
QuickBooks Online needs a designated spot to house information about your mortgage, like a virtual vault for your loan-y secrets. Here's how to create this financial Fort Knox:
QuickTip: Don’t rush through examples.
-
Gear Up (Access Your Chart of Accounts): Head to the Settings menu (look for the gear icon) and then explore the wondrous land of "Chart of Accounts." This is where all your financial characters – bank accounts, expenses, and the like – reside.
-
Craft Your Account (Create a New Account): Click the "New" button, and behold! A blank account form appears, ready for your customization.
-
Choose Your Weapon (Account Type): From the dropdown menu, select "Long-Term Liabilities." This is where all your long-term financial foes (mortgages, car loans, etc.) go to cower.
-
Name Your Nemesis (Detail Type): In the "Detail Type" section, choose "Notes Payable" – a fitting name for your mortgage overlord.
-
Give it a Nickname (Account Name): Here's where you can get creative. Instead of boring old "Mortgage," unleash your inner wordsmith and call it "The Dragon I Feed Every Month" or "The Neverending Loan-a-saurus Rex."
Remember: This account will track the total amount you owe on your mortgage, so keep it updated for maximum financial mastery!
Tip: Read once for gist, twice for details.
 |
Taming the Loan Monster: Recording Payments
Now that your mortgage has a comfy home in QuickBooks Online, it's time to record your monthly payments and show that pesky loan who's boss. Here's the drill:
Tip: Share this article if you find it helpful.
-
Unsheathe Your Weapon (Write Checks): Navigate to the "Banking" menu and choose the mighty "Write Checks" option.
-
Identify Your Target (Payee): This is where you'll enter the name of your mortgage lender. Consider it aiming your financial arrows.
-
Divide and Conquer (Split the Transaction): Click the magical "Split" button. This lets you allocate different parts of your payment to the correct accounts. Here's the fun part:
- Target the Beast's Heart (Principal): Choose your mortgage account (the one you created earlier) and enter the amount that goes towards paying off the actual loan amount – this weakens the beast!
- Silence the Interest Gremlins (Interest): Pick an "Interest Expense" account (you might already have one, or you can create a new one). Here, you'll enter the amount that goes towards paying just the interest – consider it bribing the gremlins to keep quiet for a while.
Remember: Some mortgage payments might include escrow amounts for property taxes and homeowner's insurance. You might need to create separate expense accounts for these and split the transaction further.
QuickTip: Focus on what feels most relevant.
Conquering your mortgage in QuickBooks Online might seem daunting at first, but with these steps, you'll be a financial hero in no time. Remember, knowledge is power, and with this knowledge, you can slay the mortgage monster and take control of your financial destiny... or at least impress your accountant with your newfound QuickBooks prowess.
 |
