PlanGuru's Note Payable projection method enables users to forecast long-term liabilities by defining loan type and payment terms
The Note Payable method is suitable for both existing and new loans, offering flexibility in debt projection setup. After completing the setup, the loan forecasts will be reflected in the balance sheet, income statement, and cash flow statement.
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Setup Steps:
- Specify whether the loan is new or existing.
- Enter the loan term and recent balance or new loan amount.
- Choose the payment type and either input the payment amount or interest rate.
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Loan Amortization Schedule:
- Details each payment with interest, principal, and ending balances.
- Provides flexibility in setup options.
- Option to link to an existing or new interest expense account on the income statement.
Forecasts for the loan are then reflected in the balance sheet, income statement, and cash flow statement. Adjustments can then be made anytime by editing the account.