How To Deal With Loans In Xero

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  • Опубліковано 23 гру 2024

КОМЕНТАРІ • 19

  • @wesseldirksen7746
    @wesseldirksen7746 9 місяців тому

    Thank-you! finally a solution here after searching through a lot of unhelpful Xero forum threads

  • @PBNelly45
    @PBNelly45 2 роки тому +2

    Thanks for video. But how do you record the interest for amortied interest that is included in payment. It does not come in as a separate debit in bank account?

    • @hitthebooksnz
      @hitthebooksnz  2 роки тому

      Hi - I would use the Add Details link in the bank rec screen and split out the amounts, coded to the relevant codes. I show how this is done in this video here: ua-cam.com/video/xrR8tk7eHB8/v-deo.html

    • @PBNelly45
      @PBNelly45 2 роки тому

      i guess i need to as the bank what portion interest as it just not state on the statement.

  • @pixiepawspetshop
    @pixiepawspetshop 2 місяці тому

    Thank you so much!

  • @ubuntuscorpious
    @ubuntuscorpious 10 місяців тому

    Thanks but what about non cash loans? How do you create a liability account with a negative value to start paying off?

  • @beckonware2709
    @beckonware2709 27 днів тому

    What if I received a loan amount of $8000 and the payoff is 12% of my weekly sales revenue until loan is repaid which includes a capital fee of $809. The repayments includes the capital fee. How would I add the expense of the capital fee? Thank you.

    • @hitthebooksnz
      @hitthebooksnz  26 днів тому

      @@beckonware2709 Hi. First you would create an Account Code for the Capital Fee portion. Then, whilst reconciling you would split the repayment amount between your Loan Code and your Capital Fee code. I have a video showing how to split a transaction between multiple account codes. Please take a look here: ua-cam.com/video/xrR8tk7eHB8/v-deo.htmlsi=eMo1P7cqrJ3Mh4kK

  • @WalterWarford
    @WalterWarford Місяць тому

    What if the the loan repayment is one amount to cover principle and interest? So if you have a loan schedule and say the payment is $1000, in month 1 (p 950 i 50) month 2 (p 945 i 55) etc

    • @hitthebooksnz
      @hitthebooksnz  Місяць тому

      @@WalterWarford Hi. You would create two account codes and then split the transaction between the two. Refer to this video on how to do that ua-cam.com/video/xrR8tk7eHB8/v-deo.htmlsi=EWyoIaUA5wd70IJG

  • @ruanvdmerwe
    @ruanvdmerwe Рік тому

    Thank you for the informative video! I have a question though. I have a loan that incorporates a brokerage fee. This fee is included as part of the loan's structure. My concern lies in the appropriate method of recording this fee in Xero. Given that brokerage fees might be tax-deductible, I'm keen to understand the correct approach to record this in the accounting system for accurate tax reporting purposes. Could you please provide guidance on this?

    • @hitthebooksnz
      @hitthebooksnz  11 місяців тому

      Hi. I’m unable to advise if the fee is tax deductible. I would suggest a quick Google on that. When you know the correct treatment, you’ll need to create a Chart of Account code for the fee, then Split the transaction and code to the Loan Account and your newly created fee account.

  • @hannahsharee8081
    @hannahsharee8081 2 місяці тому

    Amazing thank you! ❤

  • @sherilynlemon4176
    @sherilynlemon4176 Рік тому

    Hello! I have. Question. What if the company is the one providing the loan? How should I record the borrower's money loan and monthly payment coming in into this company's Xero?

    • @hitthebooksnz
      @hitthebooksnz  Рік тому +1

      You’d code the lump sum loan payment from the company using a Liability code. Then code the repayments to the same liability code.

    • @sherilynlemon4176
      @sherilynlemon4176 Рік тому

      @@hitthebooksnz thanks! There's this one borrower. The company created a bank secured loan account in Xero for it, entering the total loan amount with interest (I guess) as the beginning balance of the bank account. Then, they're transferring repayments from the Checking bank account (where the repayments deposited from) in Xero to the Secured Loan bank account. How do I record if there's a repayment deposited directly into the Secured loan bank account I mentioned?

    • @hitthebooksnz
      @hitthebooksnz  Рік тому

      @@sherilynlemon4176 that’s a bit of a complicated one because you can’t journal to a bank account. I would create a Bill transaction and add a payment transaction coded to the bank account, then reconcile with the payment in the bank account

    • @sherilynlemon4176
      @sherilynlemon4176 Рік тому

      @@hitthebooksnz thanks so much!

    • @sherilynlemon4176
      @sherilynlemon4176 Рік тому

      Hi again.. I have one last Q: instead of creating a bill, can I just transfer from the Checking account (equal to the total amount received) to the Secured bank account then reconcile the received amount in the Secured bank account?