You might have a line of credit, operating line, or operating note that you draw from into your checking account. This means you'll see deposits into your checking account, and expenses as you pay down the amount you owe. This article will guide you through keeping track of this in Ambrook. You can watch the video or read through the instructions below.
Step 1: Create an account
To manage your Line of Credit on Ambrook, first create an account on your Balances page. This account is meant to keep track of how much you owe on your Line of Credit at any given time, not how much you have available to draw down.
Go to Balances and click New Account.
Scroll down to Line of Credit.
Enter the opening date as the date you're starting your books in Ambrook.
If you got the line of credit after starting your books in Ambrook, you can use the actual date you got the line here.
Enter the amount you owed on the Line of Credit as of that date.
When you connect your bank account, you may see a Line of Credit account. However, you will typically not see transactions on this account.
If you don't see transactions, we recommend using the above steps to create an account to keep track of the balance on the Line of Credit.
Step 2: Tag your draws
When you see a deposit into your checking account from your line of credit, you'll tag this transaction as a Liability Adjustment in the tagger. You'll select the account you just created (the Line of Credit account) when prompted.
Tagging your line of credit draws as Liability Adjustments will ensure that they are not counted as income on your Profit & Loss statement.
Step 3: Tag your repayments
You will also tag your repayments as a Liability Adjustment. If you pay both principal and interest in the same payment, you can tag the principal as a Liability Adjustment to the operating line, and tag the interest will be tagged as an interest expense. See our article here for how to split out principal and interest from the same payment.