Ready to learn how to add and track PPP loans?

If you are looking for some guidance with adding and tracking your PPP (Paycheck Protection Program) Loan, here are some ideas for you:

How to enter the Loan/ Funds

Right way to Track expenses using Classes

How to Track expenses in the Bank Account

Reports for both Payroll and Expenses

How do you enter the details if any of the loans are forgiven?

How to enter payments on the loan balance

If you received an EIDL (Economic Injury Disaster Loan) – ways you can enter these transactions.

Timestamps reference below to help find the area you want.

Excel Spreadsheet Resource: https://youtu.be/tAX_PAQp3hA

Payroll Protection Program

2 main ways to track Utilities & Rent

  1. Use Classes Feature
  2. Setting up like a bank sub-account

Desktop version

1. Using Classes *If you’re not using classes feature yet

Setting up Loans

  • Go up to “List”
  • “Chart of Accounts”
  • Go down to “Account”
  • “New”
  • Choose “Other Account Types: Long term Liability”
  • Click “Continue”
  • Account Name “PPP Loan”
  • Tax -Line Mapping (Tax Professional)

Make a Deposit

  • Go up to “Banking”
  • “Make Deposits”
  • “Deposit To”
  • “Date”
  • “Received From” (Vendor)
  • “From Account”
  • “Memo”
  • Select your “Class”
  • “Amount”
  • Click “Save & Close”

Tip💡Don’t try to jump into tracking expenses before you’ve tracked depositing the money in your QuickBooks

Checking Balance Sheet Report

  • Go up to “Reports”
  • “Company & Financial”
  • “Balance Sheet Standard”

Turning on Classes

  • Go up to “Edit”
  • “Preferences”
  • “Accounting”
  • “Company Preferences”
  • Checkmark “Use class tracking for transactions”
  • You can choose “Prompt to assign classes” **

**If you want to prompt every transaction

Setting up Classes

  • Go up to “List”
  • “Class List”
  • Go down to “Class”
  • “New”
  • “Class Name”
  • Click “OK”

Paying Expenses

**You can do it using Write Checks or Enter Bills

  • If you’re entering details in “Enter Bills” or “Write Checks”
  • Enter them like you normally do then make sure you select a Class

Report for tracking Expenses

  • Go up to “Reports”
  • “Company & Financial”
  • “Profit & Loss Standard” / ”Profit & Loss by Class”

Choosing just PPP Class in report

  • Go to “Customize Report”
  • “Filters”
  • Select “Class”
  • Choose in the dropdown “PPP Loan”
  • Click “OK”

Classes for paying employees

  • “Pay Employees”

*Process your Payroll like normal

  • “Start Scheduled Payroll”
  • “Open Paycheck Detail…”
  • Select in the dropdown “PPP Loan”
  • Click “Save & Close”
  • Checkmark the transaction you will process
  • Click “Continue”
  • “Confirmation and Next Steps” pop up screen will show

 

2. Set Up Sub-Bank Account

 

Setting up sub-bank account

  • Go up to “List”
  • “Chart of Accounts”
  • Go down to “Account”
  • “New”
  • Choose “Bank”
  • Click “Continue”
  • “Account Name”
  • Checkmark “Sub-account of____________”
  • Click “Save & Close”
  • “Setup Bank Feed” Pop up will show
  • Click “No”

 

Setting up your Loans

Make a Deposit

  • Go up to “Banking”
  • “Make Deposits”
  • “Deposit To” (PPP Funds)
  • “Date”
  • “Received From” (Vendor)
  • “From Account”
  • “Memo”
  • Select your “Class”
  • “Amount”
  • Click “Save & Close”

 

Transaction detail by account report

  • Go up to “Reports”
  • “Accountant & Taxes”
  • “Transaction Detail by Account”
  • Click “OK”

 

Online Version

1. Using Classes *If you’re not using classes feature yet

Turning On Classes

  • Go up to wheel
  • “Account and settings”
  • “Advanced”
  • “Categories”
  • Checkmark/Uncheck “Track Classes”
  • “Assign Classes”
  • Click “Save”

Setting up List

  • Go up to wheel
  • “Product & Services”
  • “All List”
  • “Classes”
  • Go to “New”
  • “Name* 
  • Click “Save”
  • If you want to change it it, click the small arrow
    •  “Edit”
    • Click “Save”

Expenses

  • Go up to “New”
  • “Expenses”/ “Pay Bills”
  • Enter details and select class

If Using Bank Feed Method

  • Go to “Banking”
  • Enter details and select class

 Profit & Loss by Class Report

  • Go to “Reports”
  • “Profit and Loss by Class”

 

2. Set Up Sub-Bank Account

  • Go to “Accounting”
  • “Chart of Accounts”
  • “New” (PPP Funds Account)

 

Timestamps for this video: (How to add and track PPP loans)

0:00 – Intro/Thought of the day

Desktop version

3:13 – 2 main ways to track utilities & rent

4:15 – Classes

Don’t try to jump into tracking expenses before you’ve tracked depositing the money in your QuickBooks

6:40 – Setup the loan

8:38 – Make a deposit

10:50 – Balance Sheet

11:22 – Setup Classes

13:05 – Paying expenses/Tracking how we spend money we received

14:40 – Profit & Loss by Class Report

17:04 – Classes for paying employees

21:02 – Q&Q – PPP does not cover everything

24:08 – Setup Sub-bank account

25:09 – Make Deposit

25:55 – Write Check/Payroll check

27:02 – Transaction Detail by Account

29:00 – Can you add classes at any time?

Online Version30:10

30:42 – Setup Classes

31:59 – Bank Feed (Classes)

32:35 – Profit & Loss by Class Report

34:09 – Setup a bank account

34:30 – Example (Online vs. Desktop)

36:31 – EIDL/P&L

42:17 – How would you clear PPP loans from the balance sheet? – Ann

43:54 – Setup Accounts (Chart of Accounts)

44:45 – Add class to imported payroll items when you use a payroll service – Diane

48:07 – Set up the sub-account from checking the chart of accounts on QBO for the funds/relief fund? – Lovelyn

48:38 – My employees are working but not 40 hours – should I run 2 payrolls one for PPP hours and one for regular worked hours – or all PPP hours – Pam

49:30 – How do you assign it a ‘number’ (desktop version) when you are in the chart of accounts set up the long-term liability? – Debbie

50:09 –  PPP Loan entry. My money was deposited in a separate checking account and I’m going to move money over to my QB checking as I use it. – Cindy

51:08 – Can you add classes by row in Desktop? – John

52:08 – All of the payroll gross wages during your loan period are to be paid using PPP funds. – Diane

53:18 – How can we use PPP Loan for a class on a bill if we already are using other classes for them?

57:10 – EIDL can pay interest, but the interest portion is not known at the time of payment.  How do you suggest to handle it? – Darlene

59:49 – Benefit of Class

 

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Share with us in the comments below – which way will you track your loans? 👇