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lpenney18
Level 1

PPP Loan Set up

Hi- We are a small business and received a PPP Loan. We use Quickbooks Enterprise Desktop. I am looking for help with setting up the loan in Quickbooks and making sure everything reflects properly on our company financials. Our PPP Loan funds have been received into a new bank account set up just for these funds. We are transferring the funds as needed to our checking account to cover payroll and other approved office expenses. I have the loan set up in Quickbooks as an "other current liability" and entered the full amount of funds received so the balance reflects appropriately in the bank account. Do I need to do anything further for this portion? Do I need to set up tracking for the expenses we are using these funds for? How do I make sure this is all reflecting properly on our company financials? As of right now the loan shows up on the balance sheet as a liability. Nothing shows up on the P&L which I believe is correct as this is not considered income at this time. However, do the funds I have transferred from the loan bank account to our checking account need to be on the P&L as income? And what do I do when the loan is forgiven? Does the forgiven amount need to reflect as income? Any help is greatly appreciated! I have been doing finance for many years but do not have an accounting background and have very little experience with loans so this is quite hard to understand.

2 Comments 2
DivinaMercy_N
QuickBooks Team

PPP Loan Set up

Hi there, @lpenney18.


I've seen your similar post where my colleague already responded and gave further information regarding your concern. 

 

Please check this link to route you to the post: https://quickbooks.intuit.com/learn-support/en-us/ffcra-and-cares-acts-including-the-ppp/re-recordin....

 

For your future reference, you may check out this article: Paycheck Protection Program loan. This will provide you more details on managing and preparing your loan. 

 

Should you need anything else, don't hesitate to comment below. I'm always around to help. Stay safe and take care always.

lpenney18
Level 1

PPP Loan Set up

Thank you! I was not receiving any notification that my replies had posted so I kept trying again and now I have over-posted!! 

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