How is QuickBooks Loan Manager Helpful?
Let’s see how Loan Manager in QuickBooks works. Any loan needs a fixed monthly payment, and this includes the monthly compounded interest at a fixed rate, the monthly principal installments, the decreased interest portion and the increased principal portion that grows with each installment payment throughout the Loan.
Now, we know the Loan is issued at a fixed interest rate and with every installment reduces the principal amount of the outstanding loan, the interest paid of the fixed amount of installment payment is also lower.
The Loan Manager calculates the amortization schedule and keeps track of current due installment as well as the outstanding loan balance. Therefore, anyone using QuickBooks does not have to calculate the correct allocation of interest & the principal reduction in every monthly payment. Moreover, you do not have to track every payment to the amortization schedule.
