What We’re Seeing with PPP Loan Forgiveness
For all the businesses that received PPP funds, and an EIDL Advance this year, we are seeing many ways to handle this revenue. We have been booking everything as a current liability. Then, as they are forgiven, we move them to “Other Income”. From the memos we have seen, it appears that there may be state and local tax on those federal funds.
The important thing to know, is that it’s time to apply for PPP forgiveness. To help make it handy, we’ve got links to two forms you can use to apply. NOTE* When you click through, you’ll see that the forms have an expiration date of 10/31/2020 – this is not an indication that it’s too late to apply. We have seen several iterations of the form, and they have gotten simpler over time.
How’s that for some tax-time good news?
About the Author Barb Fisher
Barb Fisher is the CEO of Fisher Bookkeeping and a Certified Profit First Professional whose firm was named 2025 Profit First Professionals Firm of the Year. She loves breaking accounting down into meaningful bits, so entrepreneurs can use their numbers to make a real difference in their own business. Outside the office, Barb enjoys walking and traveling.
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