Customized Profit & Loss Statement by Date
Summary: You can customize a QB report to show the allowable expenses paid during the 8 week period after funds are received.
Advantages of using this method – it’s easy and straightforward.
Disadvantages: it’s not easy to see how much money is left in the fund. You can’t “split” expenses – if all of your employer taxes are coded to the same expense account (i.e. Payroll Taxes) you won’t be able to use that account on the Profit & Loss Statement to accurately track your payroll costs.
Cautionary Note – if you do not use the money within the 8 week expenses it will be harder to custoyou can run a report that shows what monies came out of this account, but the report won’t total the
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Create a new Long Term Liability account called “PPP Loan Payable”
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Go to Lists at the top menu then Chart of Accounts.
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Select Account in the bottom left corner then New.
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Select Other Account Types, Long Term Liability and then Continue.
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Name the account something like “PPP Loan Payable”. Do not enter an opening balance.
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** It is recommended to set up the loan as a Liability until it is determined how much of the loan will be forgiven. If some or all of the loan is forgiven you can create an “Other Income” type account called “PPP Loan Forgiveness” and make a Journal Entry to Debit the “PPP Loan Payment” liability account and credit the “PPP Loan Forgiveness” other income account.
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Record the Deposit of the PPP Loan funds received
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Go to Banking at the top menu and then Make Deposit
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Deposit To = the bank account the funds were deposited to
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Enter the date the funds were deposited
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Received from = the lender you received the funds from (set up a new vendor if needed)
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From Account = “PPP Loan Payable” (the new Liability account). Enter memo and amount.
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Record expenses as you normally do
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Record Payroll as you normally do
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See the “Recording Payroll” section above for more details
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Note: If your employer taxes (FICA, FUTA, SUTA) are coded to the same expense account (i.e. Payroll Taxes) you will need to either make an adjustment to move the ineligible FICA and FUTA taxes to another count, or keep a separate ledger tracking those expenses.
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Reporting – you can run either a Summary Report or a Detail Report to track PPP Loan expenses:
Summary report – gives you an overview and will show you the % of each expense type
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Go to Reports at the top menu then Company & Financial then Profit & Loss Statement
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Select Customize Report in the top left corner of the report
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From the Display tab change the “From” date to the date that you received the funds and the “To” date to 8 weeks after
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Select % of Expense in the bottom right corner
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Click on the Header/Footer Tab and type “PPP Loan Tracking Report” in the Report Title Field. Then OK.
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Select the Filters tab in the center and then select the Account filter.
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Select the Account dropdown and scroll to the top of the dropdown menu and select Multiple accounts. Click on all applicable accounts eligible for PPP Loan forgiveness (i.e. payroll wages, rent, utilities, etc.) and then OK.
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Click on the Header/Footer Tab and type “PPP Loan Tracking Report” in the Report Title Field. Then OK.
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Note that there will be no “PPP Loan” Income because the monies received are considered a Loan (and not Income) until it has been forgiven.
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Once you have run the customized report you can save the report settings by going to Memorize, name the report (i.e. PPP Loan Tracking) and select OK.
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In the future, to run the report select Reports from the top menu, then Memorized Reports then PPP Loan Tracking Report.
Summary Report:
On the left is a regular Profit and Loss Summary report for those 8 weeks. On the right is a customized Profit and Loss Summary that shows only those expense that are eligible for forgiveness.
Detail Report – show the detailed transactions of PPP funds spent. Note: this doesn’t show the % each type of expense represents like the Summary report does.
To read about other available methods
Want a PDF Copy?
Sometimes it's just easier to download or print out a file than have to view it on a computer screen so we are now offering the option of purchasing a PDF file for download. This 17 page document includes all of the PPP Loan Tracking information on this website, including screen snapshots and detailed instructions. To purchase: