How to Setup a Mortgage Loan

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If you are purchasing a commercial property, then you will want to know How to Setup a Mortgage Loan in Quickbooks.
The video lesson below was a response from a question we received from "Cannon Bookkeeper".


Quickbooks Mortgage Setup

First thing you do is setup your chart of accounts.
Setup a New Account for "Long Term Liability" and called it "Building Loan" for example.
Main part is remember to put a beginning balance of the principle amount that you are borrowing.
Then you can setup an "Interest Expense" account to record money you spend on interest.
Upon making the monthly payment, apply the principle payment towards the Long Term Liability account and the interest towards the expense.

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