Why Shouldn't I Put My Loans in the Bill Pay Section?
One error we have seen in the past, is clients putting their loans in the bill pay section. What we mean by this is... they will put a bill in there for the entire amount of the loan. Let's say it's a $20,000 loan. They will create a bill for that amount. Then each time they make a payment, put it towards that bill. Loans should be tracked as a Liability in Your Chart of Accounts. A liability is something that is owed and under law, needs to be paid like a loan. It is paid o