eSign Landscape Transforming Appointment Record Made Easy

Esign landscape transforming appointment record

hey hey rhonda rosand here cpa and advanced certified quickbooks pro advisor with new business directions today i have a short video on how to record your ppp or payroll protection program funding or your eid your economic injury disaster loan funding in your quickbooks file make no mistake about it these are loans they're not grants you do have the ability to earn these funds and you are deferring these loans for six months the ppp can be deferred for six months and then it converts into a two year one percent loan if you do not apply for and receive forgiveness so we need to record these two the ppp and the eid in your quickbooks file as loans now the intention what is your intention because there are current liabilities and there are long-term liabilities a two-year loan is a long-term liability however if you plan to seek forgiveness and repay the portion that is not forgiven then this is a current liability if you intend to turn it into a loan for the two years it is a long-term liability so first you need to figure out what is your intention and forgiveness is harder than it may seem you need to spend the money on the approved expenditures within the covered period the eight weeks after you receive funding from the ppp and you need to apply for forgiveness and if you get 100 forgiveness that's fantastic it was a current loan it turns into another income piece of cake but if you only get partial forgiveness and you pay back the peace that is not forgiven that it's still a current liability and if you do not pay that back and you convert it into a two year one percent loan then it is a long term liability so check your intentions first and then you'll know where to record it in your quickbooks file let's start with quickbooks desktop i am going to share my quickbooks desktop file we are in a sample company file here in quickbooks 2020 and we're going to go to the chart of accounts and in the chart of accounts we are going to create an account for the ppp loan and we're going to create an account for the eid advance or loan it's as simple as going to right click and then clicking on new or you can drop down here to account and go to new or you can hit the control and the n key if this is a current liability if you have the intention of paying it back within the year then it is a current liability otherwise it is a long-term liability if you plan on converting it into a loan in either case it's recorded exactly the same so other current liability continue the account name we're going to call this the sba ppp loan and we're going to save a new and we're going to create the sba eid loan advance you can call this one the advance and save and close and now in your other current liabilities section you have the ppp loan and you have the eid loan now if they were long-term liabilities it would be as simple as editing the account changing the account type to long-term liability doing the same thing with the ppp funds edit the account change the account type from other current liability to long-term liability in either case they are in your chart of accounts ready for you to record the funding that you received now if you've received your funding it was deposited into your bank account you simply need to record a deposit into these accounts from your home page record a deposit into whatever checking account this money went to it probably went into your operating account at whatever date from whatever bank and then just record it as your ppp funding the check number the date that you received it and the amount of money that you received let's say it was 25 000 close and now when you look at your chart of accounts you can see that you now have 25 000 in your sba ppp loan that's how you do it in quickbooks desktop let's pop over i'm going to stop this share and i'm going to share with you my quickbooks online account i'm in again a sample company file for craig's design and landscaping services and in here under the accounting tab and over to the chart of accounts and i want to create a new account for these i simply click the new button in quickbooks online and this as i mentioned before is either a current liability or a long-term liability depending on your intentions of what you're going to do with the funds if it is a long-term liability it's a notes payable it's the sba ppp loan and then you can save a new and you can create another long-term liability note payable sva e-i-d-l or e-i-d advance and save and new actually i should have saved and closed now when i go down here and i look at my long-term notes payable my long-term liabilities i have these accounts in my chart of accounts so that's how you add it that's how you add an account in quickbooks desktop or quickbooks online to track your ppp loan from the sba or your eid advance from the sba also if you have questions about quickbooks or need assistance please start with our website at newbusinessdirections.com don't forget to sign up for our youtube channel visit our blog where we have articles like this and if you need help organizing your chaos or streamlining the process please give us a call it's okay we can help stay safe