Quickbook Strategies for Notes etc.

[David Hite]

Hey everyone!

I have purchased my first note, and it is about to be boarded. Once I start getting payments, I am wondering about everyone's strategy for how to track the note within my LLC's quickbooks company file.

  My CPA recommended creating a new equity account as the value of the discounted note price. Then as I get payments, I apply the principle portion decreasing the value of that equity account, and placing the interest income into "interest earned" under income.

  What strategies are people using to track these accurately and with minimal headache with book keeping?

Thank you!

Dave