We already offer great Loan account to manage your mortgage, car loan and more - anything where APR is involved. However, there might be cases where you borrow from/to your friend some money. You might agree on very small interest or none whatsoever. Since there's no formal APR and the repayments might not be regular, how can you handle this in MoneyWiz? Read on to learn how.

First, make sure that tags are enabled

Just head on to Tag basics guide to learn more about tags and how to enable them. Come back once you've read the article and enabled tags.

Then, enter the loan expense or income

Let's say that you've borrowed your friend €500 when you last met him in person. The loan was handled in cash. Here's what you should reflect in MoneyWiz:

  1. Transfer from your checking account to cash (ATM withdrawal of €500).
  2. Expense in Cash account for €500 (giving money to your friend).

In order to properly track the loan, make sure to add a tag to the €500 expense. You can name the tag anything you want. If you're not doing this sort of thing often, you might just give it a "Loan to John" label. If you wish to be more organized, you could setup a system of tag naming like "Loans : John".

If instead of borrowing money to someone, you were the one to receive it, just log an income instead of an expense.

Please note that the category of the transaction is not relevant - you can make it fit your existing category structure or create new category for it. It's the tag that is important.

Tracking the repayments

We've properly logged the loan payout. Let's say that your friend is now paying you back €100 monthly. If he paid you back, log an income (if he paid you back in cash, log it in your cash account. If he paid you back via a bank transfer, log it in the bank account) and assign the same tag to the income that you assigned to the expense. This will allow you to properly track the balance of this "loan".

If your friend is paying you back regularly, you might consider setting up a Scheduled transaction for the repayments.

If you were the one to borrow money from a friend, simply tag your expenses.

Please note that the category of the transaction is not relevant - you can make it fit your existing category structure or create new category for it. It's the tag that is important.

Monitoring the loan progress

At any time, you can check the final balance of your loan. To begin, go to Reports and start generating Profit and Loss report. You can leave the category and period fields as they are or modify them - that's up to you. What's important is that you click on the Add filter button and select Tags and then select the tag you've used for the loan.

When you generate the report, you'll see all transactions that have been tagged using the specified tag. This way, we can see all incomes and all expenses - with a grand total at the bottom.

What if the loan has been all paid up?

Once the loan has been all paid up, you have a choice:

  1. Leave everything as it is (recommended) - this would allow you to come back to review the loan history at any time in the future.
  2. Delete the tag from Settings -> Tags - if you are certain that you won't need this information anymore, you can delete the tag from MoneyWiz Settings. Your transactions will remain - however the tag will be removed from them. Your account balances will remain accurate but you'll no longer be able to generate Profit and Loss report to review your loan balance.
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