Navigating PPP can be a really difficult process. With so much complicated and conflicting information out there, it’s important to get these loans right on your balance sheets. In this video, Parquesi Partners details everything you need to know to account for your PPP loans.
- Keep a journal entry that details how you spend your PPP loans.
- It’s important to give your PPP loans their own lines on your balance sheet.
- Normally, forgiven loans must be counted as income and taxed. PPP loans, however do not.
- PPP loans, if used correctly, will completely balance out on a payroll sheet. The revenue of the loan will equal the expense at the end of the loan.
As the PPP program continues, best practices may change when it comes to accounting. Keep in touch with EO Chicago for all of the latest news and insights on what’s best for your business!