Common questions about loan accounting
Answers about loan balances, fees, payment parts and new borrowing.
On this page
Step 1: Open the loan
Go to Accounting > Loans. Find the loan and choose View loan.
Step 2: Compare the statement and records
Review Loan activity for the opening balance, payments and escrow entries. Compare their dates and amounts with your lender statement. On the Loans page, choose Payment activity to review the recorded payment parts.
Check the result
- You can compare the dated loan balance with the original payment records.
FAQs
How do I record a cash-out refinance?
Keep the closing statement. Review the new loan, old debt, proceeds and opening journal with your preparer. Borrowed proceeds are not rent revenue.
Why can Loans and Balance sheet show different balances?
The dated loan balance tracks principal for the next payment; a posted opening balance establishes debt in the books. Compare dates, opening records and payment activity. The default cash-basis Balance sheet is simplified and does not provide a complete mortgage balance.
What if the payment includes a late fee?
Keep the fee separate from principal, interest and escrow. Use the appropriate expense entry and make sure the total matches the lender statement.
Should I enter a line of credit as a credit card?
Choose HELOC as the Loan type and use Balance only when a standard forecast does not fit. Ask your bookkeeper which account type fits the draws and repayments before using a credit-card workflow.
What are the parts of a loan payment?
Review Principal, Interest, Lender escrow and Additional principal. Their sum must equal Total payment. Escrow funding and a later bill paid by the servicer are separate events.
What if one loan covers several properties?
Each saved loan has one Portfolio/property scope. The payment workflow does not automatically divide one payment across several properties. Resolve the allocation with your bookkeeper before recording it, and never repeat the full payment under each property.
How do I record a private or interest-only loan?
Choose Hard money loan, HELOC or Other as appropriate in Add loan. Use Balance only when the standard forecast does not fit, then review the separate opening-balance step. In Record payment, enter the actual principal, interest and escrow from the statement.
Why does the loan balance look doubled?
Compare the dated statement balance, opening record and Payment activity for duplicates or missing history. Only the latest unchanged payment offers Reverse. Use the recovery guide to review the complete correction; changing a forecast does not correct or automatically rebook past payments.
Does recording a loan payment pay the lender?
No. It records the payment. Check the separate bank transfer or lender confirmation.