Loan & purchase documents
Loan agreements, amortization schedules, and purchase agreements we use to set up your balances correctly.
Loan & purchase documents
If your business has a loan, financed a major asset, or was purchased outright, a handful of documents help us set your balances up correctly from day one. Without them, a loan payment looks like a plain expense and your balance sheet won't reflect what you actually owe — so these are worth gathering early.
A loan payment is part debt paydown and part expense, and a business or asset purchase creates balances we need to record. The documents below let us split and track all of that accurately.
Loan agreements & amortization schedules
A loan payment isn't all expense. Part of each payment pays down the principal — the balance you owe — and part is interest, which is the actual business expense. Only the interest belongs on your profit and loss; the principal reduces a liability on your balance sheet.
To split every payment correctly and track your balance as it falls, we need:
- Your loan agreement (the original terms — amount, rate, and length).
- An amortization or payment schedule, which shows how each payment divides between principal and interest, with a running balance.
- Or, if you don't have a schedule, statements that show the remaining balance so we can work it out.
If you can't find an amortization schedule, your lender can usually provide one, or you can use a statement that shows the current payoff balance. Either gives us what we need to track the loan correctly.
Purchase agreements & notes payable
If you bought a business or financed a major asset (a vehicle, equipment, or property), the purchase creates balances we need to record from the start. Helpful documents here include:
- A business purchase agreement or bill of sale showing what you bought and for how much.
- A note payable or financing agreement, if the purchase was financed rather than paid in cash.
- Any closing or settlement statement that breaks down the components of the purchase.
These tell us how to record the asset, any related debt, and how the purchase price was split — all of which feed your opening balances.
Why we need these documents
The common thread is your opening balances — the financial starting point your books build from. Loans and purchases create assets and liabilities that have to be on the books from day one, or your balance sheet won't match reality and your payments will be miscategorized. Getting these documents to us early is one of the fastest ways to keep onboarding moving.