Notes: PPP borrowers may engage the services of an accountant to track the use of their PPP funds. However, only the borrower or an authorized representative who is legally permitted to make certifications on the borrower’s behalf may submit an application for loan forgiveness. Accountants should be aware of this limitation and ensure that an authorized representative of the borrower understands his or her obligation to complete, review, and certify to the contents of any loan forgiveness application.
The QuickBooks PPP Center helps your clients track the use of their PPP loan funds directly in QuickBooks®. It is currently available for all QuickBooks Online, QuickBooks Desktop, and QuickBooks Self-Employed customers, regardless of lender.
Clients who received a loan within QuickBooks Capital can also access loan documents, and will find their loan information pre-populated.
As an accountant, the PPP Center’s tools and reports can help you advise your clients as they prepare for loan forgiveness.
- Access loan documents*
- Estimate forgiveness
- Track PPP spending:
- Non-payroll expense report
- Payroll expense report**
* Only for clients who received a loan within QuickBooks Capital
** Only for QuickBooks Online Payroll and QuickBooks Desktop Payroll customers
How to access
Your clients can access the PPP Center from the Capital tab of QuickBooks Online and QuickBooks Self-Employed. To access the PPP Center from QuickBooks Desktop, select the PPP notification in the Payroll Center for each QuickBooks Company file that has a PPP loan. You may need to restart QuickBooks to see the notification.
QuickBooks Online Accountant users do not see the Capital tab in their clients’ books, but can access the PPP Center through a link in the notification bell.
PPP forgiveness estimator
After inputting the loan amount and date they received funds, your clients can launch the forgiveness estimator to forecast scenarios and understand how spending decisions may impact loan forgiveness. You can help your clients to make business decisions by entering potential payroll and non-payroll expenses, as well as adjustments to headcount and wages to see how these changes may affect forgivable and non-forgivable costs.
If your client currently uses QuickBooks Online Payroll or QuickBooks Desktop Payroll, the information that we have in our systems that’s related to payroll spend-to-date during the covered period can be pulled from the payroll report; clients should review their payroll data to ensure all covered payroll costs are included. Non-QuickBooks Payroll users can enter this information from their payroll provider.
PPP Center reports
On the main PPP Center page, your clients will have access to one or two new reports that will assist with tracking and applying for loan forgiveness. These reports include data from your client’s covered period, and will be helpful in showing how your clients spent their PPP loan funds.
The PPP payroll cost report is only available to QuickBooks Online Payroll and QuickBooks Desktop Payroll users, and can be found within the PPP Center, as well as through the Payroll tab (QuickBooks Online) or Payroll center (QuickBooks Desktop). The report will automatically update with the latest payroll information in QuickBooks, and includes the following for the covered period:
- Salary, wages, commissions, or similar compensation.
- Additional wages paid to tipped employees, if applicable.
- Employee benefits, such as PTO, allowance for employee separation or dismissal, insurance premiums, taxes, and retirement.
More information on this report is available here.
The PPP non-payroll expense report can be used to track other forgivable non-payroll business expenses, such as rent, lease, utility, and mortgage interest expenses. It is available to all users within the PPP Center. Using the same covered period, this report creates a customized P&L report. Information such as distribution account, transaction type, and vendor can be selected to ensure the right information is captured on the report.
More information on this report is available here.
The PPP Center includes FAQs to help clients better understand how to spend PPP loan funds to help maximize forgiveness. For more information on PPP loan forgiveness, you and your clients can also visit the QuickBooks PPP resource center.
Regulations and guidance from the SBA and the U.S. Department of the Treasury on the PPP are evolving rapidly and the above information may be outdated. Please refer to the SBA and Treasury to confirm current program rules and how they apply to your particular situation.
This information is provided as a courtesy. Nothing in these materials is intended to, and does not, create an agency relationship with Intuit Financing Inc. (d/b/a QuickBooks Capital), or any right to fees from QuickBooks Capital for any services you may provide to borrowers. QuickBooks Capital will not compensate any person or entity assisting a borrower without first having executed a written compensation agreement with both the borrower and agent, and by providing this information, QuickBooks Capital does not agree that it will enter (or has entered) into any written compensation agreement with any person or entity.
PPP loan and forgiveness calculations and eligibility may vary. Refer to the SBA.gov for information about your particular situation.
The above referenced in-product reports may not identify all expenses which are eligible for PPP loan forgiveness. These reports are intended to provide general insight into how you are using your PPP loan funds, and should not be relied upon for PPP loan forgiveness tracking purposes.
The uses listed above are ones that may be covered by loan forgiveness (“covered uses”) and are not the only allowable uses of a PPP loan.
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Original article from the Firm of the Future Blog.