Record Mortgage Payments in QuickBooks

October 3, 2023

One of our clients recently asked about recording mortgage payments in QuickBooks. If you are using QuickBooks to manage your real estate business, we are pretty sure our response will be helpful to you.

Q: I just bought a property that will be rented. I took out a 15 year mortgage on it. How do I show it as a purchase and record the monthly payments I’ll be making to the bank?

A: The first step is to speak with your accountant and ask for a Journal Entry. Enter each property as a Fixed Asset and each mortgage as a Long Term Current Liability. Create an expense account for interest, real estate tax, and insurance.

Enter the purchase details and then, each month, enter a bill or a check for the payment you make to the bank using the accounts mentioned above.

Gita Faust

About the Author

Gita Faust has over 30 years of accounting experience in the real estate and property management industry, Gita Faust is more than just a real estate investor; she is also popular for her work as an accountant, consultant, mentor, speaker, QuickBooks Top ProAdvisor, QuickBooks Solution Provider, member of Intuit’s Trainer/Writer Network, and, of course, author. Gita is well-known for her exemplary leadership and advisory skills. In fact, she even helped pioneer the adaptation of QuickBooks to suit the needs of professionals in real estate and property management. To share her knowledge she has written a series of courses titled Simplified Accounting Solution, which provides step-by-step guidance for those working with QuickBooks.

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