How To Register The Ppp Loan In Quickbooks
Ppp stand for paycheck protection program whic.
How to register the ppp loan in quickbooks. Additionally if you have quickbooks online plus you can add a class called ppp and tag expenses to it. Today we will teach you how to record and track your ppp paycheck protection program. Select a checking account i created a temp holding sub account under my main checking account for this but you can just use the main account where the funds went debit the amount that was dispersed into it from the loan proceeds. Creating a payroll report may help verify these numbers and expedite the auditing process. Borrowers seeking loan forgiveness for ppp loans can apply for forgiveness through their lenders.
Record the initial deposit to the sba loan account adding a balance to the loan. Once all the ppp funds are used up your lender will ask you to show how you spent the ppp funds. That will open up the chart of accounts screen with the list of all of your accounts. In the chart of accounts select account then select new select bank click continue enter a name for the account like ppp loan funds click sub account of and choose the bank account from the drop down. Covered expenses should be allocated to their normal expense accounts but all covered expenses should be recorded in our spreadsheet here.
In the top right click new to create a new account. Remember it s only 1 interest so it s okay if you end up having to repay some of the ppp. Did your business receive the ppp paycheck protection program loan. Select your new ppp loan account enter amount of the loan in credit column line 2 account. They ll need to verify the number of employees on the payroll and their pay rates during the loan forgiveness covered period after their loan was disbursed.
Navigate to your chart of accounts by selecting accounts on the left hand side and choose chart of accounts. Many tech providers within the accounting space have rapidly added tools to help small businesses cope with business disruption during the covid 19 pandemic including some pricing relief. If you can 110 guarantee that it will all be forgiven set it up as a short term liability since the life of the loan is only 8 weeks if you anticipate that even a portion may not be forgiven maybe not rehiring enough full time equivalents by june 30 set it up as long term as it has a 2 year repayment plan. Credit ppp loan or whatever you want to call it as a liability.