How To Register The Ppp Loan In Quickbooks

Did your business receive the ppp paycheck protection program loan.

How to register the ppp loan in quickbooks. 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. 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. 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. Ppp stand for paycheck protection program whic. Record the initial deposit to the sba loan account adding a balance to the loan.

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. Navigate to your chart of accounts by selecting accounts on the left hand side and choose chart of accounts. Borrowers seeking loan forgiveness for ppp loans can apply for forgiveness through their lenders. Additionally if you have quickbooks online plus you can add a class called ppp and tag expenses to it. That will open up the chart of accounts screen with the list of all of your accounts.

Covered expenses should be allocated to their normal expense accounts but all covered expenses should be recorded in our spreadsheet here. New to intuit s quickbooks is the paycheck protection program ppp center and the latest update adds a loan forgiveness estimator and ppp specific reports to quickbooks online among other tools. Today we will teach you how to record and track your ppp paycheck protection program. Select your new ppp loan account enter amount of the loan in credit column line 2 account. In the top right click new to create a new account.

The loan will either be forgiven in full or the lender will disallow some expenses and require a portion of the loan to be repaid. Creating a liability account to record loans in quickbooks online. Once all the ppp funds are used up your lender will ask you to show how you spent the ppp funds. Creating a payroll report may help verify these numbers and expedite the auditing process.