Accounting Software for Savings & Loan Credit Business - QuickBooks for Micro-Credit Business

Savings and Loan business accept customers deposit or savings for a specified period and pay a lump sum after deducting interest for services rendered. They also give out loan and advances to qualified members to finance personal or business needs.

This business operates like micro-credit and finance house.

As a savings and loan business owners, your most concerned areas in transaction recording are how to accurately track your customers deposits, interest income, advances to customers and generate a dependable financial report.

You can refer to my tutorials on QuickBooks Pro, Premier or Enterprise on extra-ordinary Income and expenses recording functions on the side menu.

Customers' Deposit

When a customer pays into your account as cash savings or deposit, it should be recorded as a liability because now you owe the customer money which you will have to pay back on calls.

To record this transaction in QuickBooks, you have to set up a liability account called customers' deposit and add a new item called Savings and Deposit categorized under Customer deposit in chart of account.

Follow my post on how to set up loan in QuickBooks - since loan and customer deposits are current liabilities.

The slight difference in QuickBooks is that you will enter Customers' Deposit as account name and enter opening balance as at when you are setting up your savings & loan business in QuickBooks unlike when you record loan as an account name.

Tips: Not all the money that you received as deposit will be paid back to your customer because you are in business for profit which calls for interest deductions otherwise known as credit income.

At the point of generating a receipts (Sales receipts in QuickBooks), the money received will appear as undeposited funds which will be deposited into your business, you can run a fund transfer to account for your income from deposit as illustrated below.

This window shows a bank deposit window which is used to record all payment received from customers.

Click Record Deposit icon on the QuickBooks homepage. All the funds available for bank deposit are shown as undeposited funds.

It is advisable that you set up a different bank account for your savings deposit and interest income to accurately track your finance.

On the window above, use the 'Cash back goes to' to select the bank account that is designed to track your interest income and use 'Cash back amount' to enter the interest figure. click save and close.

Loan and Advances

When you offer credit to your qualified customers, you also need to recognize that as your asset in your balance sheet.

Firstly, you have to set up Customer Loan and advances as an other charge when you set up items in QuickBooks as shown below:

You can also follow my post on how to set up asset for small business to see how I opened this window.

Select other Account Types and select Other Asset.

Click Continue

Use this window to set-up your loan and advances account in QuickBooks.
Click save and close.

To record a credit advancement to a customer, click write cheque and fill in the field as shown.

Follow my post on how to write a cheque in QuickBooks

These are some of the key accounting functions of QuickBooks accounting software for savings and loan credit business.