Starting today, eligible QuickBooks® customers who received their first Paycheck Protection Program (PPP) loan of $150,000 or less through QuickBooks Capital in 2020 can now access their online loan forgiveness application experience.
Thereof, how do I account for PPP in QuickBooks?
Here’s how:
- Go to the Accountant menu, and then choose Chart of Accounts.
- Click the Account drop-down arrow, and then select New.
- Select the Bank radio button, and then 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.
- On the Home page, select Enter Bills.
- Select the vendor, then choose the date.
- Select the Expense tab.
- Choose the right expense account.
- Enter the amount for the expense.
- Select Save & Close.
Also know, how do I enter a PPP loan in QuickBooks for Mac?
How do I enter a PPP loan in QuickBooks self employed?
Once ready, here’s how to get started:
- Go to the Transactions menu, and then choose Add transaction at the top.
- Enter a name like “PPP loan”, and then select the appropriate category. This is when an accountant’s advice comes in handy.
- Hit Save once ready.
How do I find my PPP loan number in QuickBooks?
How do i find my ppp loan number
- Log in o your QuickBooks Online account.
- Go to Capital in QuickBooks.
- If you’re eligible to apply for a Second Draw PPP loan within QuickBooks Capital, you’ll see an invitation in the PPP Center box.
- Click Get Started to start your application.
How do I record a loan payment in QuickBooks desktop?
Recording a loan payment as an expense
- In your QuickBooks Desktop, go to the Banking menu and select Write Checks.
- Select the bank account where you want to pay the loan.
- In the Expenses tab, select an expense account from the drop-down.
- Enter the amount of the payment.
- Click Save & Close.
How do I record a PPP loan expense?
Recording a PPP Loan and Tracking Corresponding Expenses
- Create a sub account to the bank account in the Chart of Accounts. …
- Create a new loan account in the Chart of Accounts. …
- Record the loan proceeds received. …
- Pay your expenses from the bank account as you normally would.
How do I record an SBA loan in QuickBooks?
QuickBooks How-To: Recording Funds Received from the SBA Paycheck Protection Program (PPP)
- Click Lists on the top menu bar.
- Click Chart of Accounts.
- Click the Account dropdown (or right click in the list)
- Click New.
- Click Other Account Types, choose Long Term Liability from the dropdown list.
- Click Continue.
How do I record the PPP loan on my books?
Head to Accounting and then Transactions; click Add expense. In the new expense transaction, enter the date, and enter a description (for example, “PPP loan accrued interest”). In the Account dropdown, select the PPP loan account. Enter the amount of accrued interest on the statement into the Total amount field.
How do I track PPP in QuickBooks desktop?
QuickBooks Desktop
- Go to the Reports menu, then Company & Financial.
- Select Profit & Loss Detail.
- Select Customize Report.
- From the Display tab, select the From date to match the date you received your PPP funds, and set the To date to 8 or 24 weeks after.
- Under the Display tab, select the ‘Report Basis’ as Accrual.
What is the accounting entry for the PPP loan?
PPP loans should be accounted for as debt instruments in accordance with ASC 470, Debt. Therefore, when the loan proceeds are received, the accounting entry would be a debit to cash and a credit to a long-term liability account (i.e., “PPP Loan Liability”).
What should I put PPP loan under in QuickBooks?
Forgiveness of PPP loan proceeds should be recorded as “Other Income” in QBO.