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?
Barb is the CEO of Fisher Bookkeeping, an outsourced bookkeeping consultancy that provides small businesses with a full-service financial department. Her favorite aspect of work is to break down the accounting to meaningful bits, so entrepreneurs can make a powerful difference in their own business. She's also a power lifter (squat: 215, DL: 270).