PPP loan approved, got the cash, what now?

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So you’ve been approved for a PP loan, it’s in your bank account, what now?

Here’s how to post the deposit in your books and apply the expenses to your loan:

  1. Make a balance sheet account for the loan.
  2. On the opening transaction, there is a box on the lower-left corner as you scroll down for attachments.
  3. Instead of transferring your owner draws to your personal account, write a check from your business account to yourself and enter on the memo line “Owner Draw”.
  4. When it clears the bank, go into the bank and print to pdf the front and back of the cleared check.
  5. Save it to your desktop in a file called “receipts applied against PPP loan”
  6. finally, drag-drop the cleared check as well as all other receipts, cleared checks, paid invoices, and statements into this attachment box located on the transaction in QBO.

The attachments will accumulate.  By the end of the 2 to 3 month period, you should have enough attachments to substantiate forgiveness of most if not all of the PPP Loan.

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Karen Ault, EA
Tax Consultant, Accountant, Quickbooks Pro Adviser

Karen is an Enrolled Agent (EA) which means she is authorized by the U.S. Dept. of Treasury to represent taxpayers, business entities, and estates before the IRS in tax preparation, audits, collections, and appeals. 

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