Hosted QuickBooks Tip of the Week: Using the QuickBooks Loan Manager
Have you ever wanted to track your loan principal and interest payments? QuickBooks makes it easy with their Loan Manager which is built right into the software.
When a loan is repaid in regular fixed payments, this repayment usually includes both compounded interest and principal installments for the period.
As each successive payment is made the interest portion gradually decreases and the principal portion increases. The QuickBooks Loan Manager creates an Amortization schedule for the duration of the loan, showing how much of each payment is applied to principal, interest and escrow (additional fees related to the loan). It also allows you to make payments for either the regular scheduled amount, or additional payments, and to run "what-if" scenarios to compare different loan choices.
Please tune in to next week’s QuickBooks tip.