I just received word from our bank that the SBA has forgiven our PPP loan in full! When I received the loan, I recorded it as an Other Current Liability. Now I am confused as to the best way to remove the liability. I assume I would credit an income account, and since we are a nonprofit (church), there is no tax ramification. Therefore, my 2nd question has to do with timing. The money was received and used in last FY (ending 6/30/20), so should I record the income/loan forgiveness on 6/30 and reprint my YE reports? Or would it be better to record in this month (Oct)?
