As you all know, the U.S. Small Business Administration (SBA) has launched the Payroll Protection Program (PPP) to help small businesses keep workers on their payroll. The loans have been authorized by Congress under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). This topic assumes that a company has already applied for and received a PPP Loan.
General Description
The funds received under this program have provisions that allow the loan to be forgiven if certain restrictions are met. The steps outlined in this article provide a way to segregate the funds so that their use can be monitored and reported back to the lending institution for compliance with these restrictions. The screen shots are from QuickBooks Online Advanced, but the techniques will work essentially the same in QuickBooks desktop editions.
Based on frequently asked questions and feedback from the webinars Ed’s run so far, he’s updated the handout
Some of the changes from the earlier version include:
- Special situations such as payments from credit card accounts
- How to track PPP funds when bills are paid out of multiple accounts (e.g. Operating and Payroll)
- Tips for record keeping
