11/08/2021
FREE ADVICE! 🗣
For the last few months, I cannot tell you how many business owners have asked me how to report a forgiven PPP loan and what steps to take.
“What is a PPP Loan?”
Paycheck Protection Program is a forgivable loan(as long as you followed the guidelines) to help with payroll costs, rent, utilities, etc that was provided for businesses to stay afloat during the pandemic that affected majority of the US. To find more information about PPP loans & forgiveness, please visit sba.gov, click on menu and search PPP Loan.
“My loan has been forgiven now how do I report it on Quickbooks Online?”
To report the forgiven PPP loan it all depends on how it was categorized for your income in your Chart of Accounts. Most people categorized as “Other Income” which is usually taxable, but can be unchecked for taxable income when completing an adjusting journal entry. A bank deposit can also be used to record the loan. There is more than one way to account for this type of income.
What’s MOST important is consulting with your accountant to make sure you’re following the best course when reporting your income from all aspects, not just for PPP forgiveness.
Some of us love DIY projects, which is respected, but wearing many hats is not always ideal when you need more time to actually run your business. Don’t overwhelm yourself. Outsource. Keep the health of your business in tip top shape!
