I see no help with handling the question asked but it needs to be answered. I ask the same question, how do I correctly handle PPP loan forgiveness in QBooks? I originally set up a short term liability account showing amount owed in 2020. That amount has now been forgiven so, how to handle it. I use common sense here soooo I figure I need an account similar to something like what would be used if a business was given a grant. I saw where some accountant wannabe said to use Other Income. No way, income to me means that the tax lady is licking her lips hoping for part of it during tax time and that’s not the case. Maybe an equity account of some sort, increasing the value of the company due to the infused funds. We used most of the funds for payroll, keeping people at work, but the accounting system doesn’t care about that. Those funds went out as payroll expense but really what happened is equity of the company increased by the infusion of cash. Anybody with any sense got any ideas and please don’t tell me to contact an accountant at, this should be pretty easy for accounting types
