The Paycheck Protection Program (PPP) Center is a new feature in Intuit’s QuickBooks, and the current version adds a loan forgiveness estimate and PPP-specific reports to QuickBooks Online, among other things. In addition, many accounting IT companies have quickly implemented solutions to help small firms deal with the disruption caused by the COVID-19 outbreak, including some pricing relief.

QuickBooks users can currently access:

  • All QuickBooks Online, Desktop, and Self-Employed customers who applied for and obtained a loan from QuickBooks Capital have access to the PPP Center.
  • All users who acquired a loan from QuickBooks Capital and are QuickBooks Online or Desktop customers with employees have access to the Loan Forgiveness Estimator.
  • PPP Reports – Expense reports are available in the PPP Center for all QuickBooks Online, Desktop, and Self-Employed users. In addition, customers of QuickBooks Online Payroll and QuickBooks Desktop Payroll can access payroll reports.

Center for Paycheck Protection: The Capital Tab in QBO will take you to the PPP Center. It’s the first place in QuickBooks to look for PPP-related information. Users can manage to spend, estimate forgiveness, generate PPP-specific data to support forgiveness applications, and discover answers to frequently asked problems using the centre. Businesses who have applied for and been approved for a loan through QuickBooks Capital will have access to loan information and documentation that has been auto-populated by the QuickBooks system. Only firms that have accepted a loan through QuickBooks are eligible for the resources.

Calculator for loan forgiveness: The loan forgiveness estimator, which can be accessed through PPP Center, is intended to assist business owners and accountants in better manage the forgiveness process and reduce future debt. The tool provides a snapshot of where firms stand by analysing current payroll and non-payroll spend during the covered time and calculates how much of a loan is likely to be forgiven based on current expenditure trends and Small Business Administration criteria.

Users can also run scenarios, modify prospective payroll and other expenses, and staffing and wage adjustments to see how forgivable and non-forgivable expenditures are affected. In addition, the platform includes answers to frequently asked questions and Treasury and SBA-approved instructions on how to use funds wisely to maximise forgiveness.

Reports on PPPs: Two additional QuickBooks reports are now accessible in the PPP Center to help with loan forgiveness tracking and applications:

  1. PPP Expense Report: A profit and loss report may be customised to track certain qualified PPP expenditure.
  1. PPP Payroll Report: Available to QuickBooks Online Payroll and QuickBooks Desktop Payroll users, this automatically updated report gathers all qualifying payroll expenditure for the covered period. These are some of them:
  • Salary, salaries, commissions, or other forms of remuneration
  • If applicable, additional earnings are paid to tipped personnel.
  • PTO, provision for employee separation or dismissal, insurance payments, taxes, and retirement are all examples of employee benefits.

How do I code a PPP loan in QuickBooks?

In QBO, forgiven PPP loan profits should be reported as “Other Income.” Therefore, to keep track of the funds, create a new income account as follows:

  • Go to the Accounting tab in your QuickBooks account.
  • Select Chart of Accounts, then New.
  • Select Other Income from the Account Type drop-down menu.
  • Select Other Miscellaneous Income as the Detail Type.
  • When you’re finished, click Save and Close.

How do I record PPP in QuickBooks?

Allow me to assist you in setting up a loan account in QuickBooks Online. Here’s how to do it:

  • Go to the Gear icon and select Chart of Accounts from the drop-down menu.
  • Select New from the drop-down menu.
  • Choose an Account Type as well as a Detail Type.
  • Enter the PPP loan as the account’s name in the name box.
  • Complete the Description field (Optional).
  • Select Other from the drop-down arrow in the When do you want to start tracking your finances in QuickBooks from this account box.
  • Select a date. (For example, 04/25/2020).
  • In the what was your account’s balance box, type the loan amount.
  • Save and close the window.

Conclusion

In conclusion, QuickBooks Desktop software is accounting software that has always been widely regarded by almost all categories of businesses and organisations. In this blog, you will get to know more about the importance of PPP reports in QuickBooks and some other aspects related to the same, so please read the whole blog very carefully. Finally, I, at this moment, would like to thank you for your time devoted to this blog. I hope that this blog helps you in some way or the other.

Share this Link: