Taxes and planning · Taxes
Why does DeskOps ask how much of a loan payment was interest?
ComputerOpen Home, then Needs attention and Split the payment.
Phonenot on the phone yet for a new lender, answer it on a computer; a lender you already answered for can be changed at Expenses, then Loan payment splits.
A loan payment from your bank account is part interest and part paying down the loan, and only the interest is a business expense. Your bank feed doesn't say which is which, so DeskOps never counts a loan payment as an expense on its own. It holds the payment and asks you once how much of it was interest; your loan statement shows that figure. DeskOps remembers your answer for that lender and splits every later payment to them the same way, to the cent. The interest becomes an expense and the rest is left out, because repaying a loan isn't a cost. Payments you or your bookkeeper entered yourselves are left exactly as entered.