QuickBooks comes with many new features and now it has arrived with a new program for the small business owners, self-employed, and other eligible applicants to apply for the Paycheck program plan. This is a part of Corona Aid, relief, and economic security. The government also authorized the additional $310 billion in forgivable loans to pay employees and cover certain operating expenses.
After receiving the amount you need to set up the things in your accounting system. Many companies need to be recorded. In today’s article, we will discuss the same. Let’s start our journey.
Open a Separate Bank Account
After getting the funds you need to open a separate bank account for your PPP funds which helps you to manage the things easier. Your reports for Paycheck program plan loans can be easier to produce from your accounting software. It is recommendable to contact your bank t set up a separate business account. There may be some costs associated with the same to open a bank account and it depends on bank to bank. You can get help from your banker.
Steps for Setting up the Loan Entries in your QuickBooks
Setting up the loan entries in your accounting software is almost similar to every accounting software. It consists of 3 steps:
- creating a new bank account
- creating a loan account
- Recording of deposits of the funds
Creating a New Bank Account
If you have already created the bank account earlier then the steps are almost the same. Just follow the same steps to create a PPP loan account. The next step is to connect your bank account to the accounting software using your online credentials.
Create a Loan Account
Although your PPP loan can be forgivable you need to set it up like any other loan. To set up just go to the section of the accounting software which deals with the chart of accounts. While creating the account you should set it up as a liability account. Don’t forget to make the account a unique name.
Recording the Deposit of Funds
Bank account and loan account has been set up. The next and last step is to record receipt of funds. You may need to transfer the funds from the existing bank account to a PPP account depends on how you received the amount. In that case, make sure to transfer the total PPP loan.
While depositing the amount make sure that it has the following components:
- Date the deposit using the loan was funded
- total deposit should match the total PPP funds
- the account should be the point as PPP loan payable account
- The memo should be mentioned as “PPP funds received as of [DATE]
How to contact
For any further help dial and get help from the experienced QuickBooks Helpdesk. Professionals are polite and quick listeners to solve the customer’s issues in minimum time with complete satisfaction. QuickBooks Helpdesk is available 24*7 to support your business and help you to get a new height of the business in the market. You can also email at [email protected] and one of the experts contact you soon. The QuickBooks experts are having years of experience in the same domain and this quality makes them special. Just contact them and get rid of all the errors and issues related to QuickBooks.