https://quickbooks.intuit.com/cas/dam/IMAGE/A8kGrzU3j/How-to-record-and-track-your-Paycheck-Protection-Program-loan-spending_featured.jpg, 3 tips to record and track your Paycheck Protection Program loan, What is cash flow? The way that you use your PPP loan impacts your potential loan forgiveness. “As painful as it sounds, having a separate account for this loan and maintaining good recordkeeping [may] provide the best results,” he explains. Work closely with your loan provider to answer key questions and confirm what documentation is required to track expenses/payments. This article currently has 6 ratings with an average of 1.7 stars, 10 tips for using cash flow management to grow your business, 10 Accounting Mistakes Business Owners Make | QuickBooks, Accounting definition: How to master the basics + 3 (free) spreadsheets, Breaking Down Cash Flow Management & Pro Tips to Make it Better, https://quickbooks.intuit.com/r/payroll/track-ppp-loan/. Here is a sample which shows the example of $57,000 in PPP … Intuit does not endorse or approve these products and services, or the opinions of these corporations or organizations or individuals. *The uses listed above are ones that may be covered by loan forgiveness (“covered uses”) and are not the only allowable uses of a PPP loan. “Then, for the next eight weeks, they’ll pay out all their payroll, rent, utilities—everything that qualifies—from that account,” he said. As a reminder, your PPP loan may be forgiven, in whole or in part, if you meet certain requirements. When making a PPP loan … Launched by two small business owners, we started with the mission to help inform other entrepreneurs with PPP … The QB P&L will not show regular spending vs. PPP spending, so keep a separate spreadsheet to track the PPP spending. Open a separate bank account for your PPP loan. How to Track PPP Loan Expenses (Template Included) - YouTube Take a look at Macksey’s video, and make yourself a copy of his loan forgiveness spreadsheet to give it a try. Many business owners may want to take spending visibility to another level by laying it out in a spreadsheet. If you receive a Paycheck Protection Program (PPP) loan, tracking how you spend it is an important part of applying for loan forgiveness. “Once the loan period is done and you apply for loan forgiveness—and [if] it’s approved—you will have copies of all your bank statements on hand. 3. Intuit Inc. does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Boyer & Ritter can help your business navigate through compliance requirements of the loan forgiveness program, to help ensure maximum … On the date picker, select Custom then enter your covered period: Start date: the day your lender sent you the funds. The maximum loan amount is based … Spreadsheets aren’t the only way to track your loan. For example, salary, wage, or headcount reductions during the covered period after you first received your PPP loan proceeds from the lender may reduce the forgivable amount for some borrowers. As part of the national effort to combat the devastating economic effects of the COVID-19 pandemic, the CARES Act was signed into law on March 26, 2020. Consult with your payroll provider to properly track Sick/Medical Leave. 2) Start logging your actual expenditures - regardless of how the forgiveness is calculated it wil be applied to your actual expeditures for the 8 week period following the first deposit you receive from your PPP loan… Before applying for PPP loan forgiveness, borrowers will need to organize their documentation, including information regarding payroll, mortgage interest, rent, utility, and other eligible costs paid using the PPP funds during the loan forgiveness covered period. 1. Regulations and guidance from the SBA and the U.S. Department of Treasury on the PPP are evolving rapidly and the below information may be outdated. PPP Loan Forgiveness Support Services . Borrowers whose loans were assigned a loan number by the SBA on or before June 5 th can decide whether to elect to use an 8-week or a 24-week expenditure period in order to … “When you put it into the same account, you have $50,000. Excel Spreadsheet Template for tracking PPP expenses 2. Welcome to how to track P loan expenses using a template My name is Matt Holst with the QuickBooks University and also the President of the Host Firm as you can see up here, the logo Full-service CPA firm and what we've done here is we have created a P loan expense tracking template … “So there’s a line-by-line record of their spending.”, “Say you have $20,000 in your operating account today, and you get a $30,000 PPP loan,” says Poulos. “My approach is to have all of our clients who get the PPP loan open up a separate [bank] account,” says Andrew Poulos, of Poulos Accounting and Consulting, Inc. From there, he has his clients deposit the funds from their PPP loan into this new operating account. From there, you start paying out the qualified expenses, as well as other non-qualifying expenses. In this example, bring the following to your lender to apply for loan forgiveness: (A) PPP loan … The PPP loan … These tips will help you track your spending. Download the PPP Loan Forgiveness Calculator. The certification documentation provided in the worksheets above allows you to document how and why the PPP loan … PLEASE NOTE: These spreadsheets are locked to maintain the integrity of the formulas. It is designed to take the guesswork out of tracking which expenses count toward your PPP loan forgiveness. The NEW template can be purchased & downloaded below. Update the spreadsheet each time a new expense is added to the PPP check. While there are certainly other ways to track your spending of your PPP loan funds, these resources may give you a good starting point. It is not necessary to obtain the password to use these documents. The loan … Our PPP Calculator, a powerful but easy to use Excel spreadsheet, accounts for every expense as you allocate your PPP … The “covered period” is extended to 24 weeks; businesses now have up to 24 weeks to spend their PPP funding (extended from 8 weeks) Current PPP borrowers can opt to extend the eight-week period to up to 24 weeks, or they can chose the original eight-week … For loans made on or after June 5, 2020, your loan forgiveness covered period is 24 weeks. Additional information and exceptions may apply. https://craykaiser.com/24-week-ppp-loan-forgiveness-templates For a step-by-step guide on how to track your use of your PPP loan funds in QuickBooks, check out this resource by Alicia Katz Pollock and Megan Genest Tarnow. Borrowers can extend the 8 week period to 24 weeks to utilize the maximum amount of forgiveness. Please refer to the latest guidance from SBA and Treasury to confirm current program rules and how they apply to your particular situation. Readers should verify statements before relying on them. Those can be used for tax and accounting purposes, and you can always close that account if you decide not to keep it active.”. PPP Spreadsheet. Editor’s note: Regulations and guidance from the SBA and the U.S. Department of Treasury on the PPP are evolving rapidly. Intuit accepts no responsibility for the accuracy, legality or content on these sites. He explains how the spreadsheet tracks when your payments are due, based on the loan distribution date. download the ppp loan forgiveness templates Last week, the Treasury issued an FAQ to provide a recovery period to public companies that took PPP loans when they had adequate resources. COVID Loan Tracker is a community of 40,000+ small business owners reporting across all 50 states. ... Find a template to help with tracking PPP expenses: Excel Spreadsheet Template for tracking PPP expenses QuickBooks Guidance for tracking PPP … Intuit Inc. does it have any responsibility for updating or revising any information presented herein. An SBA-backed loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. We’ve provided a useful spreadsheet below to do just this. Download the 24-Week Full Time Equivalent (FTE) Calculator. PLEASE NOTE: These spreadsheets are locked to maintain the integrity of the formulas. The new 24-week limit and other changes to PPP Loans means changes in calculating payroll costs, and thus the amount of loan forgiveness. The Paycheck Protection Program offers loan forgiveness if you've used the money on qualified expenses. QuickBooks Guidance for tracking PPP expenses Paycheck Protection Program Overview. End date: 8 or 24 weeks after the date you received your PPP … It is not necessary to obtain the password to use these documents. The Act authorized the creation of the $349 billion Paycheck Protection Program (PPP), a loan program meant to provide loans … For loans made before June 5, 2020, you can choose to use either an 8-week or 24-week loan forgiveness covered period. Accordingly, the information provided should not be relied upon as a substitute for independent research. It gets messy.”. Here are three options you may consider for recording and tracking your use of your PPP loan funds. 24-week period: use the 2.5/12 method of 2019 net profit, up to $20,833 - which is 100% forgiven. An accountant may be able to help you track and navigate your PPP loan and apply for loan forgiveness. PPP loan accounting. To properly account for the PPP loan, we suggest creating a “PPP Loan Payable” account on your trial balance to record the liability you assume upon receipt of your loan proceeds. Download the Information Checklist to Apply for PPP Loan … “I wanted to create this spreadsheet because so many business owners need a helping hand right now,” says Macksey. ]PPP forgiveness calculator - Long form 3580 (revised on 6/17/20 and again on 6/19/19 to correct formula error) - Excel. Please read the instructions in the worksheet which indicate how to use the resources as intended. Perform a bank reconciliation at the end of the 8th week and tie your general ledger account to the bank statement. 2021 - PPP Worksheet Instructional Guide. This loan … Furthermore, since a portion of the PPP loan can be used for mortgage, lease, and utility obligations, gather documents to verify that you make those types of payments. Please read the instructions in the worksheet which indicate how to use the resources as intended. On the Tags dropdown, select your PPP Loan tag. Applicable laws may vary by state or locality. Self-employed with no employees can spend the full $20,833 as owner compensation replacement and it will be eligible for 100% forgiveness if proper documentation is provided with PPP … Macksey laid out columns in the spreadsheet for different payroll expenses that are considered forgivable. Step 3. This content is for information purposes only and should not be considered legal, accounting or tax advice, or a substitute for obtaining such advice specific to your business. The UPDATED as of July 8, 2020 SBA PPP Loan Forgiveness Tracker costs $99. The resources described above are made available to businesses within the United States of America. Borrowers can still keep the original 8 week period if they so choose. This site is brought to you by the Association of International Certified Professional Accountants, the global voice of the accounting and finance profession, founded by the American Institute of CPAs and The Chartered Institute of Management Accountants. Google Tag Manager Feb 19, 8:04 PM EST The PPP (Paycheck Protection Program) Loan Forgiveness Payroll Worksheet is available from the Accounting CS Library. Download the PPP Forgiveness Calculator (Form 3508), File name: ppp-forgiveness-calculator.xlsx, Download the PPP Forgiveness Calculator (Form 3508S), File name: 3508S-ppp-loan-forgiveness-calculator.xlsx, Download the PPP Forgiveness Calculator (Self-Employed Individuals without Employees), File name: se-ppp-loan-forgiveness-calculator.xlsx. “Hopefully they just received their PPP loan funding, and now they need a way to keep track of it so they can [apply to] get their loan forgiven in part or in full.”. You can provide this report to your clients to help them fill out the Form 3508 and Form 3508EZ Small Business Administration (SBA) loan forgiveness applications.. For more details about the Paycheck Protection Program, as specified in the CARES Act, see the PPP … And he talks about how an Economic Injury Disaster Loan (EIDL) emergency advance affects your overall PPP loan as well. Congress has passed the Economic Aid Act that streamlines the forgiveness process for borrowers with loans $150,000 or less, adds the ability for new borrowers to access PPP and for current borrowers to take a second PPP loan … “My approach is to have all of our clients … The loan forgiveness calculators use available guidance from the Small Business Administration (SBA) and Treasury, along with interpretations of that guidance (see notes throughout) to estimate the amount of a PPP loan that may be eligible for forgiveness. And speaking of starting points, if managing your business’s accounts makes you nervous on a good day, it might be time to consult an accounting professional. Instructions PPP forgiveness calculator - Prior version (5/22/20 - 6/17/20) - Excel Please see our important disclaimer regarding use of the calculator inside the Excel spreadsheet… How to Track Spending for on Non-Allowable Expenses. We provide third party links as a convenience and for informational purposes only. Track Headcount of your Employees each week … 2021 - PPP Loan Forgiveness Rules. elect to calculate eligible payroll costs using the 24-week (168-day) period (or for loans received before 6/5/20 at the election of the borrower, the eight-week (56-day) period) that begins on the first day of the first pay period following PPP loan … Borrowers whose loan numbers were assigned after June 5 will automatically have a forgiveness period that is the shorter of: 24 weeks, or; From the date of the loan … Download the 8-Week Full Time Equivalent (FTE) Calculator. Existing clients of TGG Accounting should email their team for their FREE Loan Forgiveness Tracker link. Luckily, Chris Macksey and the team at Prix Fixe Accounting have a PPP loan tracking template already set up. Instructions PPP forgiveness calculator - Short form 3580EZ- fillable PDF. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Your payroll accounting software may have another solution. They’ll walk you through creating a long-term liability account in QuickBooks, categorizing expenses, and running reports. An in-depth guide for business owners, Mortgage interest payments on mortgages incurred in the ordinary course of business before February 15, 2020, Rent payments under leases dated before February 15, 2020, Business utility payments for electricity, gas, water, transportation, telephone, or internet access under service agreements dated before February 15, 2020, Certain employees identified in the statute, including additional wages paid to tipped employees. Input payroll data into the spreadsheet. This is where you would include gross wages or salaries, cash tips, health care benefits, and others. How is a bank or underwriter going to know if you used your money or the loan money for expenses that do not qualify? The interest rate remains 1%. The article even gives some helpful tips for nonprofits, which have unique and essential reporting needs. You can spend PPP funds received on non-allowed expenses, but know those expenses won’t be forgiven – you will have to repay them, along with loan interest. Please refer to the latest guidance from SBA and Treasury to confirm current program rules and how they apply to your particular situation. The SBA PPP Loan Forgiveness Tracker will guide you through the necessary steps to keep your SBA PPP … 3. This section is separated from “other covered expenses.” The spreadsheet tracks one against the other, so you can monitor your spending in accordance to the PPP 60/40 guideline. To be forgiven in whole or in part, at least 60% of your spending must be on eligible payroll costs, in addition to certain other requirements. Macksey’s explainer video covers the various components of his spreadsheet: the sections that are editable, the sections that are necessary for tracking, and more. 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