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Level 2

PPP Loan Account Setup

I am completely confused!  I setup a separate acct to track my PPP expenses.  My bank funded the account, I added the account as a checking acct.  When I download the transaction it comes in with a negative balance. I tried to set it up as a long term liability and when I try to add the only transaction it tells me to set the category as type bank.    One additional note, looking at the transaction from the my online banking I see:

Date:  4/20/2020   Description: New Loan Advance   Debit: ($amount)  Credit:    Balance: $amount.  

Please help me get this right.

 

Another note:  I see the bank set this up as a loan not a checking acct.

 

Solved
Best answer April 22, 2020

Best Answers
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Level 15

PPP Loan Account Setup

You can not set up a bank type account as a loan, call it wht you will but it is still treated as an asset.

You have to learn to make entries, the work flow is and always has been, make entries, downloan banking, match

This should be a liability account, a CC card type account will also work.

View solution in original post

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Highlighted
Level 15

PPP Loan Account Setup

You can not set up a bank type account as a loan, call it wht you will but it is still treated as an asset.

You have to learn to make entries, the work flow is and always has been, make entries, downloan banking, match

This should be a liability account, a CC card type account will also work.

View solution in original post

Highlighted
Level 2

PPP Loan Account Setup

Thanks we got it figured out.  The bank didn't give me online access to the checking account where they deposited the funds.  Once the corrected that we were off and running.  

 

Thanks for the reply.

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Level 1

PPP Loan Account Setup

I have 2011 contractor version (Ancient!)  I am not an account and help with my brothers books.  He received a PPP loan and cannot figure out how to set it up in QB.   We opened seperate bank account for the loan. Also,  we are not connected online with our QB to our bank.   Help!!! 

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QuickBooks Team

PPP Loan Account Setup

Hi there, @Jessgilb.

 

You can use the QuickBooks Desktop Loan Manager to help you track the PPP loan. Before you set up the accounts for the loan manager, you'll want to make sure you have a liability, vendor, and expense account set up for the loan. Then, you can set up an escrow account for the portion of the loan that's managed by a third-party. Here's how:

 

  1. Go to the Lists menu and select Chart of Accounts
  2. Hit the Account drop-down, then push New.
  3. Choose Other Account Types, and then Other Current Assets.
  4. Press Continue and enter the account name.
  5. Click Save and Close

 

Next, you'll want to record and track your loans by following these steps:

 

  1. Navigate to the Banking menu and select Loan Manager.
  2. Press Add a Loan.
  3. Enter the account info for the loan (Account Name, Lender, Origination Date, Original Amount, and Term), then when you're ready, hit Next.
  4. Insert the loan's payment info (Due Date of Next Payment, Payment Amount, and Next Payment Number) and push Next.
  5. Enter the interest info (Interest Rate, Compounding Period, Payment Amount, Interest Expense Account, and Fees/Charges Expense Account) and choose Finish when you're done.

Now you can track your loan in QuickBooks. You may find this article helpful as well: QuickBooks Loan Manager.

 

Feel free to post below if you have any other questions. I'm always here to lend a helping hand.

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Level 1

PPP Loan Account Setup

Once i received PPP Money in bank account. What's the next step i should  do in Quickbooks?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

uickbooks?

Highlighted
QuickBooks Team

PPP Loan Account Setup

Hi, APG2.

 

Glad to have you here with us in the QuickBooks Community. I can assist with your question on the PPP. I can show how to put it into QuickBooks now that you've received it.

 

What you'll want to do is credit the PPP loan as a liability. You can name it something simple and recognizable such as "PPP Loan" and choose to set it as either a short-tern or long term liability. Keep in mind you'll need to also record the bank you received it from, as you're paying back or being forgiven by that bank, not the SBA. You can view the articles below for more information. I'm here as well if you have any questions at all.

How to set up credits for Payroll

Highlighted
Level 2

PPP Loan Account Setup

so... loan or current asset?  I'm confused by the responses

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QuickBooks Team

PPP Loan Account Setup

Hi there, gregbeasley. The Community is here to help you find an answer to any questions you have.
 

The Paycheck Protection Program is a loan. So ultimately, it's an asset to the lender and a liability to the borrower. You can find further information about the PPP loan in the following article: Paycheck Protection Program Overview
 

If you have any other questions, feel free to respond to me here. Have a great day!

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Level 1

PPP Loan Account Setup

Great demo.  You didn't include anything about payroll though.  Is every payroll item included in the loan forgiveness or only certain items?  I.E., federal taxes etc.?

I use QB Enterprise and do payroll myself.  Thanks.

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QuickBooks Team

PPP Loan Account Setup

Thanks for joining the thread, @Diana D.

 

I hope you're having a beautiful day. The loan forgiveness is designed to help you pay your employees like you're running payroll yourself. This means the loan you receive can be applied to the following payroll costs:

 

  • Salary, wages, and commissions or similar up to $100,000
  • Cash tips or equivalent
  • Payments for vacation, parental, family, medical or sick leave
  • Dismissal or separation allowance
  • Group health care benefit payments (insurance premiums)
  • Retirement benefits
  • State and local taxes

 

Now you know what you can include when running your payroll. You can find more information in this article: Loan forgiveness.

 

Please don't hesitate to touch base with me here if you have any other questions. Enjoy the rest of your day.

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Level 1

PPP Loan Account Setup

Anna, We don't have the option of LOAN MANAGER on our Quickbooks under the banking tab.  Our options are:

 

Connect Account or Upload Transaction

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Level 1

PPP Loan Account Setup

Does anyone know how I find the file?

PPP_Calculator.xlxs 

I had initial help setting up my loan application (no longer available). Having said that I'm completely lost. Any advice is appreciated! TIA

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QuickBooks Team

PPP Loan Account Setup

Hello, Mathina. 

 

I believe you're looking for the Payroll Calculator based off of your post, If that's correct, follow the link below, it's our Intuit Aid Assist tool that allows you to check your eligibility, calculate your potential loan amount and see how much will be forgiven. 

 

- Intuit Aid Assist Tool

 

If there's anything else I can help with, feel free to post below. 

 

Thank you for your time, have a nice evening. 

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Level 1

PPP Loan Account Setup

Hi Anna,

We recently received the PPP.  I am a new bookkeeper at my company and haven't used QB in a hot minute.  I need to set up the bank in QB where it generated (Vectra) and go from there.  What we are doing is taking the funds from our Vectra bank when we run payroll, depositing them into our general bank account, and then transferring them into our payroll account.

Forgive me for not being very QB savvy.  I am unsure of how to set up the new bank account; how to record the deposits from Vectra and into our main bank account and lastly, how to track (for the loan) how this is expended.  Is this something you can help with?  I don't need alot of detail, but do need a guideline.  Any help is greatly appreciated.

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QuickBooks Team

PPP Loan Account Setup

Thanks for joining the thread, @NSimmons2020.

 

I hope you're having a good week so far. You can connect your bank account to QuickBooks, so the Vectra transactions will automatically upload from your bank account. I'll include the steps below to show you how:

 

  1. Go to the Transactions tab and select Banking.
  2. Click Connect Account and search for your bank. 

 

       

       3. Log in using your banking credentials and follow the onscreen instructions.

       4. Choose a date range for your transactions and complete the process.

 

As for recording the bank deposit, it only takes a few clicks:

 

  1. In the left-hand menu, press the + New menu.
  2. Pick Bank Deposit.
  3. Select an Account and Date, then fill out the Add funds to this deposit fields.
  4. Hit Save and close

 

Now that you know how to connect your bank account and record bank deposits, you can track your loan in QuickBooks using the steps in this article: Track how you use your Paycheck Protection Program loan.

 

Feel free to reply below if you have any other questions. Enjoy the rest of your week!

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Level 1

PPP Loan Account Setup

Hi.  I never applied yet do you think he still excepting applications

Highlighted
QuickBooks Team

PPP Loan Account Setup

You can still apply for the Paycheck Protection Program, Hjaze.

 

The PPP Flex Act extends the availability of loans under the Paycheck Protection Program (PPP) and adjusts certain rules applicable to PPP loans. Please refer to the latest guidance from the SBA and Treasury to confirm current program rules and how they apply to your particular situation. 

 

There are several steps that you will need to take to apply for the loan. You can start applying within QuickBooks Capital or visit the U.S. Small Business Administration (SBA) website and download the form there. I'll be attaching these articles that will help you through the process:

I'd also suggest getting in touch with your accountant with any questions or concerns that may arise regarding your application. 

 

I'm just here if you need more help. Take care and have a great day!

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Level 1

PPP Loan Account Setup

Hello,

We received the deposit from the PPP loan, I already created a new chart of accounts for it. What do we put the vendor/customer section as?

Highlighted
QuickBooks Team

PPP Loan Account Setup

Hello there, @gacosta.

 

I'm here to show you how we can record the Payroll Protection Program (PPP) loan in QuickBooks.

 

When recording your PPP loan, there's no need to enter a vendor/customer. You'll have to set up a liability account where we can record the loan. You can set up a short-term liability if you know it'll be forgiven otherwise, you can select the long term liability. You can refer to this article for more details: Set up a loan in QuickBooks Online.

 

Additionally, you can also use these articles for future reference. These links provide detailed information about Paycheck Protection Program:

You can always get back to me here if there's anything else that you need. I'll be around to provide further assistance. Take care!

Highlighted
Level 1

PPP Loan Account Setup

Hello. I have been following the info in this thread to set up my PPP account so that it flows properly, however,  I have not been able to do this as I read the information. I am using quickbooks self employed. I cant access a chart of accounts that has owner draw. The closest I can find is personal withdrawal which seems to have replaced owner draw in self employed.  I also have not been able to set up the PPP loan itself properly. The only way I seem to be able to capture it in self employed is by recording it as a bank loan. I don't thin it will flow properly if it is set up as a bank loan, especially if it is forgiven. I would have to credit the amount of the loan back, which I am not sure is the correct thing to do. Looking for help! Thanks!

Highlighted
Moderator

PPP Loan Account Setup

Thanks for joining in on the thread, TB26.

 

PPP loan is considered as business loan in QuickBooks Self-Employed. When you receive the loaned amount, it will flow in QBSE as a deposit if you have connected your bank account. If you need to do it manually, make sure you can track it under Business.

 

Then, you can track the loan payment as an expense. You might want to refer to this article to see the correct categories to use: Updates to expense categories in QuickBooks Self-Employed.

 

Aside from those suggestions, it is also best to consult other accounting professionals to ensure that you're recording the transactions correctly.

 

We'll be right here if you need anything else.

Highlighted
Level 1

PPP Loan Account Setup

Where do I start to even apply for this PPP loan? I've been out of work since the Pandemic and had now choice but to start my our business. Can someone help walk me through the steps of getting a PPP loan for my new business?

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Level 1

PPP Loan Account Setup

where do i go from here? am i suppose to upload something?

Highlighted
QuickBooks Team

PPP Loan Account Setup

Thanks for following this thread, TOMMYTRU.


The Paycheck Protection Program (PPP) is already closed (end of August 8, 2020). The SBA is no longer accepting loan applications from participating lenders. I can help point you in the right direction in seeking financial assistance.

 

The SBA helps business owners continue running their business in this time of challenges. For more information, see the following guide and click on the Other Assistance link: Paycheck Protection Program. 


I’m also adding a link that contains information about funding programs: U.S. Small Business Administration.


Please reach out to me again if you need more help with QuickBooks. I've always got your back. Have a great day.

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