short term loans in a law firm

How do I record a short term loan to the firm?

Short term or temporary bank loans are considered to by any loan that is expected to be paid back in under one year's time. 

Here are the steps needed to be made if the firm has taken out a short term loan from the bank or any other third party entity:
  2. Create a "Short Term Liability - [EntityName]" account
  3. (optional) Create a "Short Term Liability Principal Repayment - [EntityName]" account (contra liability account)
  5. Record the borrowing of the loan by debiting the Operating Bank Account that the money was deposited into and crediting the Short Term Liability account created in step 2.
  6. Record the repayment of the loan:
  • If a check is not need to be made in order to pay the loan:
    • Create a Journal Entry. Debit the Short Term Liability account/ Short Term Liability Principal Repayment account created in step 2/3 and credit the Operating Bank Account that the money was taken out of.
  • If a check is need to be made in order to pay the loan:
    • Create a check using the bank account the money is coming from and the Short Term Liability account/ Short Term Liability Principal Repayment account created in step 2/3 as the Assigned Account
Please make sure to consult with your accountant

    • Related Articles

    • How Do I Record a Phone Call in Zola Suite?

      The phone call feature will allow you to record notes about your phone call and store it in your matter communications. You can do this one of two ways.  From Quick Add menu Click on the "+" from the Quick Add menu Select "New Phone Call Note" From ...

    • How Do I Record A Deposit That Is Not A Payment to an Invoice?

      Oftentimes, you will have deposits going into your operating account that are not client-related. This could include owner's contributions, donations, interest deposits, or any other payments coming into the firm that are not payments to an ...

    • Adding Firm Attendees On Calendar Events

      When it comes to creating a calendar Event that multiple Zola Suite users will be attending, there is no need to invite them as an attendee via email. Each Zola Suite user has their own unique Calendar, where they can add Events for themselves, or ...

    • What is a Firm Collaborator?

      Through the Firm Collaborators feature, you can assign additional users to a matter. A collaborator may be another attorney, staff, billing or intake person, docketing manager, or legal assistant/paralegal. To add a Firm Collaborator, navigate to the ...

    • Where Do I Find My Licensing Information?

      In your Firm Settings, Active users can be viewed and managed under “Users & Groups.” To view License counts and expiration dates, click on the “+” symbol to add a new user. This will open a module where you can invite a new user. License counts and ...

    Status

    Experiencing degraded performance in CARET Legal?