How do I track a non-bank loan in GoDaddy Bookkeeping?

So you've taken a loan from a third party to grow your business, and you need to keep track of it in GoDaddy Bookkeeping.

To solve this dilemma, the first thing you should do is create a custom transaction underneath "Income" called "Loan Received" (or something to that effect) and assign the category as "Transfer In" from the drop-down menu.

Categorizing it as a "Transfer In" will allow you to treat the loan for what it really is it, non-business income. If it was business income, then you would owe tax on it, so it's good to categorize it properly.  Transfer In/Transfer Out are non-business, so they're kept separate from business affecting records in either "Income" or "Expense" tabs, by being placed in another sub-tab called "Non-Business."


Once you've taken care of all that, you'll want to create another custom transaction underneath "Expenses" called "Loan Payments" (or whatever you'd like as long as it is named something other than what you decide to call the "Loan Received") and assign that category to the "Transfer Out" option from the drop-down menu. From now on when you make payments to the originator of that loan, your GoDaddy Bookkeeping account will be able to track it and your income won't be subject to income taxes on the loan!   

As a final note, please remember that while the “Principal” part of your loan cannot be counted as Income or Expense, if you collect Interest Income, or if you pay Interest Expense on that loan, that part can be entered into your business records for tax accounting purposes.

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