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What's the best way to track money owed to me?

Len57

I've loaned some money to a friend and want to track it in Quicken. He won't be making regular payments and I'm not charging interest. I just want to keep track of how much I've lent him and any payments he makes. Do you have suggestions for how to set this up?

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Accepted answers

Chris_QPW

Just add an asset account with the opening balance the amount of the loan.
When you get a payment make the deposit in your checking account a transfer from that account.

NotACPA

How did you (have you) recorded that 1st loan amount in Q? Did you use an expense category for the transaction, or what?

Because, to my thinking, that 1st loan amount that you paid should be a transfer to the Loan account that's discussed above ... and any subsequent amounts that you loaned should also be transfers to this loan account.

THEN, when you receive payments, you record the deposits as coming From loan account to your checking account, as discussed above.

These monies that you paid out are NOT an expense, they're a transfer from one asset account (checking) to another asset account (the loan account).

All comments

Chris_QPW

Just add an asset account with the opening balance the amount of the loan.
When you get a payment make the deposit in your checking account a transfer from that account.

NotACPA

How did you (have you) recorded that 1st loan amount in Q? Did you use an expense category for the transaction, or what?

THEN, when you receive payments, you record the deposits as coming From loan account to your checking account, as discussed above.

These monies that you paid out are NOT an expense, they're a transfer from one asset account (checking) to another asset account (the loan account).

Chris_QPW

Good point @NotACPA the opening balance for the asset account should be the loan amount that was withdrawn from the original account.

I just didn't think of it.

jujujuju

You should research "imputed interest". The IRS may want to tax you on interest you never receive.

Len57

@NotACPA I did a transfer for the original loan as you suggested. I appreciate the suggestions. This method should work out well.