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owner's loans vs bank loans to company

Posted by LW 
Hi, I've been using a 2006 version for about 8 years for my real estate (rentals) investment company. I want to know how I can go back & correctly enter the loans I've made (personal loans) to the company over the years. I want this amount separate from the various bank loans for property purchases, as I want to be able to tell how the company is doing. I want to see if I can start taking my loaned money back out of the company, without having cash flow issues in the future. Thank you for your help...I just found your site & have watched many of the tutorials & wish I'd known about this back when I started using QB (as it would have been much easier)!!
Re: owner's loans vs bank loans to company
June 02, 2013 04:47AM
Hello,

The correct way is to set up a Long Term Liability account called Loan from Owner. It should have been set up the first time you put your personal funds into the company and that is where the offset account to the expense, purchase or loaned money transaction should have gone. When you begin to pay yourself back that is where the payments will be allocated to. If you have kept track of the loaned amounts another way you might have to ask your CPA for the entry or entries you will have to make to get the account up to date.
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