have you updated the system to correctly record the grant

Hi, @salon297.

The most common way to record grant in QuickBooks is to create a deposit. For proper accounting and tracking for your transaction, I recommend seeking assistance from your professional accountant. An accountant can share with your some strategies and process to record transactions that meet your business needs.

To record a deposit:

1. Open your QBO account.
2. Go to the + New icon, then click on Deposit.
3. Fill in the information, then save the transaction.

On the other hand, I also recommend visiting our blog to stay current with the latest QuickBooks news and feature updates. Here's the link: The QuickBooks Blog.

If you have any other questions about QuickBooks and recording grants, please let me know by adding a comment below. I'm always here to help. Keep safe!

how do you track the EIDL grant use?

Let's make sure you'll be able to track EIDL  grant in QuickBooks, mignetic.

EIDL are advances that are similar to a grant. But this is without the typical requirements that come with a U.S. government grant. You may track them the same way as what you spend on other eligible operating expenses by recording expenses, checks, or bills as you normally do. Just make sure you're properly categorizing them. To do this, follow the steps outlined below:

1. Go to the + New icon and select Expense, Check, or Bill.
2. In the Payee field, enter the business or person you bought the expense from.
3. Fill out the Payment account fields.
4. Fill out the Payment date and Payment method fields.(Optional) You can use the Ref no. field to enter an identifying number from the purchase receipt.
5. Give the item a name, and from the Category ▼ dropdown, select the right expense category.
6. Enter the full amount of the item in the Amount field.
7. Select Save and close.

Please read this article for more information: Track How You Use Your Paycheck Protection Loan. Moreover, you can run a report to see how much you're spending. To make sure you're able to filter the information, customize them to ensure it is showing the correct data. Customize Reports In QuickBooks Online.

Reach out to us if you have any questions about PPP. We'll be here to help.

Hi @MariaSoledadG - glad to see you are responding to people's questions. Unfortunately, there are some problems with your response.

1. Your instructions make no sense for EIDL, which is income, not an expense. You mention PPP; EIDL and PPP are two different programs. It appears you are explaining how to book expenses for PPP.
2. Also, the EIDL Advance/Grants are considered non-taxable income per IRS Publication 525. How should they be accounted for in QB? Perhaps they should be booked to an income account labeled non-taxable? How can one ensure it's coded correctly as non-taxable income when exported to TurboTax, for example?

Our accountant listed the EIDL funds as income and got us into a lot of trouble for that. What are you guys categorizing it as because it’s not income it’s a loan.? Please advise